Boeing: Business is doing well, significant gains in recovery

Boeing’s financial performance in 2025 reflected progress in its recovery, with full-year revenue rising 34% to $89.5 billion, driven by improved operational performance across commercial and defense segments according to financial reports. Fourth-quarter revenue surged 57% year-over-year to $24 billion, fueled by higher commercial aircraft deliveries and increased defense volume as reported. The company reported a record $567 billion commercial backlog, supported by 1,173 net orders for Boeing Commercial Airplanes (BCA) in 2025 according to earnings data.

Despite these gains, Boeing’s free cash flow remains under pressure. The company expects $1 billion to $3 billion in free cash flow for 2026, though Q1 2026 cash flow will likely mirror 2025’s usage due to temporary impacts, including integration costs from its $1.9 billion acquisition of Spirit AeroSystems as noted in earnings. Capital expenditures are projected to rise to $4 billion in 2026, up from $1.9 billion in 2025, as Boeing invests in production capacity, including expansion of 787 Dreamliner facilities and a new coatings center in St. Louis according to financial analysis.

Challenges persist, including a $565 million charge in Q4 2025 related to the KC-46 tanker program and ongoing risks from delayed certification of the 777X, which remains targeted for first delivery in 2027 as reported. The 777X program is expected to remain a cash drain until 2029, while prior delivery delays on the 737 and 787 programs continue to impact cash flow through customer considerations and excess advances according to earnings call.

Operationally, Boeing has stabilized 737 production at 42 aircraft per month and reduced factory rework by 20% in Q4 2025 according to financial reports. The company aims to increase 737 production to 52 units per month by 2026 and raise 787 deliveries to 90–100 aircraft annually as projected. Defense and services backlogs reached record levels at $85 billion and $28 billion, respectively, highlighting long-term demand visibility according to earnings data.

While Boeing’s recovery shows tangible momentum, execution risks—including supply chain integration, certification delays, and legacy program costs—remain critical to its path toward sustained free cash flow positivity.