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- **Record Commercial Deliveries**: 160 airplanes in Q3, highest since 2018, driving 30% YoY revenue growth to $23.3 billion.
- **777X Delay**: $4.9 billion charge for first delivery push to 2027, with $2 billion 2026 cash headwind and breakeven in 2028.
- **737 Production Ramp**: 42/month rate approved, targeting 47/month after 6 months of stability, with Q4 2025 exit rate supporting 2026 growth.
- **Positive Cash Flow**: Q3 free cash flow $238M (first positive since 2023), with 2025 usage updated to $2.5B and 2026 impacted by 777X delays.
- **Defense Strength**: BDS backlog hits $76B, BGS books $8B in orders, and Global Services delivers double-digit margins.

**【CEO Summary Section】**
- Boeing delivered 160 commercial airplanes in Q3 2025, the highest quarterly total since 2018, with revenue up 30% YoY to $23.3 billion.
- Commercial Airplanes (BCA) revenue rose 50% YoY to $11.1 billion, driven by higher 737 and 787 deliveries. Operating margin for BCA was -48.3%, impacted by a $4.9 billion charge for the 777X program.
- 737 production ramped to 38 airplanes/month in Q3, with FAA approval to increase to 42/month in October. 787 production is targeting 8/month by year-end, with plans to move to 10/month in 2026.
- Defense, Space & Security (BDS) revenue grew 25% YoY to $6.9 billion, with backlog reaching a record $76 billion. Global Services (BGS) revenue rose 10% YoY to $5.4 billion, booking $8 billion in orders.
- The company generated positive free cash flow of $238 million in Q3, the first since Q4 2023, driven by higher commercial deliveries and improved working capital.
- 777X first delivery delayed to 2027 from 2026, with a $4.9 billion charge reflecting additional rework, production disruption, and carrying costs. The program now expects to complete certification phases later in 2025 or early 2026.
- Culture change initiatives continue, with employees embracing new values and behaviors, and a follow-up employee survey planned for year-end.

**【CFO Financial Commentary】**
- GAAP net loss was $7.47 per share, primarily due to the $4.9 billion 777X charge. Non-GAAP EPS was $1.08, exceeding expectations.
- Free cash flow turned positive at $238 million in Q3, with Q4 expected to remain positive before potential DOJ payment impacts.
- 2025 free cash flow usage updated to $2.5 billion, reflecting better-than-expected performance year-to-date. 2026 is expected to have a $2 billion cash headwind due to delayed deliveries, converting to a tailwind in later years.
- Capital expenditures for 2025 are now expected to be closer to $3 billion, supporting production ramp-ups and facility expansions.
- The company maintains $23 billion in cash and marketable securities, with no debt draws on its $10 billion revolving credit facilities.

**【Q&A Key Highlights】**
- **777X Program**: The $4.9 billion charge reflects delays in certification testing and production schedule adjustments. First delivery now expected in 2027, with cash usage of $2 billion in 2026. Breakeven cash flow for the program is anticipated in 2028, with positive cash flow from 2029 onward.
- **737 Production**: Rate increased to 42/month in October, with plans to move to 47/month after 6 months of stability. 42/month production is expected to continue through year-end, with inventory buffers supporting the ramp.
- **787 Production**: Targeting 8/month by year-end, with 10/month in 2026. Constraints include seat certifications and supply chain challenges, particularly for widebody components.
- **Free Cash Flow**: Q4 2025 free cash flow expected to remain positive before DOJ payment impacts. 2026 cash flow will be negatively impacted by 777X delays but improving operational performance across the company.
- **Supply Chain**: Focus on managing constraints like seating and engine components, with ongoing collaboration with suppliers to mitigate risks.
- **M&A and Divestitures**: Spirit AeroSystems transaction expected to close in 2025, with Jeppesen sale completing in Q4. Capital investments in Charleston and St. Louis are supporting long-term production growth.


The Boeing Company (BA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BA

BA fundamentals

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