About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Shares in aerospace giant Boeing (BA -6.69%) were lower by 7.3% as of 11 a.m. today. The move is due to today's implementation of 25% tariffs on goods imported from Mexico and Canada and a 10% import duty on Canada's energy products. In addition, the Trump administration increased tariffs on products from China to 20%. Why Boeing is impactedTrade wars are bad news for Boeing. First, Boeing is traditionally the largest capital goods exporter in the U.S., and the company could see a loss of orders if airlines ...

The Boeing Co. NYSE: BA faced a lot of turbulence in 2024, from quality control issues, nightmare PR and the IAM union strike. The aerospace sector giant endured and resolved the union strike as the 33,000 striking mechanics returned to the assembly lines, bringing all systems back online in 2025. Although the company is still undergoing its 10% headcount reduction, the $500 billion backlog is more than enough to keep the company busy. While Airbus SE OTCMKTS: EADSY took control of the oligopoly during the ...

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.The Boeing Company (NYSE: BA ) is currently going through a turnaround. That is nothing new. The company has tried to execute a turnaround since it replaced Dennis Muilenburg as the CEO of the company. His successor, David Calhoun, attempted a turn ...

Industry Overview - The increasing complexity and luxury of first- and business-class cabins, which require regulatory approval, are causing delays in new airplane deliveries from major manufacturers like Boeing and Airbus [2][4]. - Both Boeing and Airbus are experiencing significant hold-ups due to the certification processes for new seat designs and cabin features, which are essential for meeting customer demands for enhanced comfort [3][5]. Company-Specific Insights - Boeing's CEO Kelly Ortberg highlighted that the delivery of 787 Dreamliners is being delayed due to issues with seat installations, which occur late in the assembly process [3]. - Airbus CEO Guillaume Faury confirmed similar delays, stating that the certification of seats and cabin components is impacting the timely delivery of aircraft [4][5]. - Delta Air Lines reported that a significant portion of its revenue now comes from premium seats, indicating a shift in consumer preference towards luxury travel post-COVID-19 [13]. Market Dynamics - The demand for premium seating is driving airlines to invest in more luxurious cabin designs, which can cost in the low six digits per seat, comparable to luxury cars [12]. - Airlines are adapting to new trends, with companies like Singapore Airlines and American Airlines planning to introduce upgraded seating options on long-haul flights [14]. - The competitive landscape is intensifying as airlines globally, including Qantas and JetBlue, strive to enhance their premium offerings to attract high-paying customers [13][14].

Core Viewpoint - Boeing's defense and space business is facing uncertainty due to delays in the certification of the Vulcan rocket, which could impact revenue and profitability projections for 2025 [1][3][8]. Group 1: Certification and Revenue Impact - The Vulcan rocket, developed by the Boeing-Lockheed Martin joint venture ULA, has not yet received national security certification, which is crucial for launching missions worth billions for the U.S. Space Force [2][4]. - ULA's CEO had previously anticipated certification would occur "momentarily," but the delay is causing concern among investors [4][5]. - The expectation of 20 launches in 2025, generating over $2 billion in revenue for ULA, is now in jeopardy, which directly affects Boeing's revenue share [6][8]. Group 2: Financial Projections and Profitability - Analysts project Boeing will achieve $85 billion in revenue this year and return to profitability for the first time since 2018, but this is contingent on the timely certification of Vulcan [7]. - Delays in certification are pushing back Boeing's expected space revenue and profitability timeline, with potential profitability now not expected until 2026 [8][10]. - Despite a forecasted small net profit this year, Boeing is experiencing significant negative free cash flow of nearly $4.9 billion, complicating its financial outlook for 2025 [9]. Group 3: Long-term Outlook - While 2025 may not meet expectations, ULA plans to ramp up to a launch cadence of about 30 rockets per year in the long term, which includes both commercial and government missions [12]. - The market capitalization of Boeing is currently at $130 billion, with an enterprise value of $160 billion, but analysts do not foresee significant profitability or free cash flow generation before 2028 [12].

Core Viewpoint - Boeing's stock has shown a modest increase of 0.9% over the past six months, contrasting with a decline in the aerospace-defense industry and broader aerospace sector [1]. Group 1: Company Performance - Boeing's performance is less impressive compared to peers like Embraer, Airbus, and RTX Corp., which saw stock increases of 44%, 10.3%, and 6.7% respectively [2]. - The consensus estimate for Boeing's long-term earnings growth rate is 17.4%, surpassing the industry's 11.4% [7]. - Boeing's projected sales for the first quarter of 2025 indicate a 17.3% improvement year-over-year, while full-year 2025 sales are expected to rise by 25.6% [8]. Group 2: Growth Prospects - Rising demand for air travel and the need to replace aging fleets are expected to drive Boeing's growth, with new aircraft offering 25% to 40% improved fuel efficiency [4]. - Boeing anticipates a $4.4 trillion market opportunity in commercial aviation support and services over the next two decades, with a robust backlog of $21.40 billion in its jet service business [5]. - The defense segment secured contracts worth $8 billion in Q4 2024, leading to a backlog of $64.02 billion, enhancing revenue growth prospects [6]. Group 3: Financial Stability - As of the end of 2024, Boeing's cash and cash equivalents totaled $26.28 billion, while long-term debt stood at $52.59 billion, indicating a strong solvency position in the near term [12]. Group 4: Challenges and Risks - Boeing faces challenges such as the ongoing issues with the 737 Max program, which has hindered growth [13]. - Industry-specific challenges, including a shortage of skilled labor and supply chain issues, may impact Boeing's ability to meet demand [16]. - The trailing 12-month return on invested capital (ROIC) is negative, indicating insufficient returns on investments [17]. Group 5: Investment Considerations - Investors may consider waiting for a better entry point due to Boeing's poor ROIC and declining earnings estimates [19]. - Current shareholders may continue to hold the stock, given its solid sales growth potential in 2025 and better performance compared to its sector and industry [20].

Core Viewpoint - Boeing Co has faced significant challenges over the past year, including issues in its commercial and defense units, as well as a workers' strike, leading to its inclusion on a list of the 25 worst S&P 500 stocks to own in March [1] Group 1: Stock Performance - Boeing's stock averaged a 5% loss in March over the last decade, with only three instances of closing higher during that period [2] - The stock is currently trading at $175.27, indicating a potential drop to around $166 if it follows historical trends [2] - Boeing's stock has a year-over-year deficit of 15.2% and has struggled to close above the $188 level since January, with five consecutive closes below the 20-day moving average [3] Group 2: Market Sentiment - Despite Boeing's recent struggles, options traders remain optimistic, as indicated by a 50-day call/put volume ratio of 2.14, which is higher than 98% of annual readings [4] - Short sellers maintain a strong position, with 19.18 million shares sold short, representing 214.7% of the stock's available float, despite a 16.6% decrease in short interest over the last two reporting periods [5]

Core Viewpoint - Boeing's recent earnings report indicates significant financial challenges, with losses widening and revenues declining year-over-year, raising concerns about the company's future performance and market position [2][3][4]. Financial Performance - In Q4 2024, Boeing reported an adjusted loss of $5.90 per share, which was worse than the Zacks Consensus Estimate of a loss of $3.22, and a deterioration from the previous year's loss of $0.47 per share [2][3]. - Total revenues for Q4 2024 were $15.24 billion, slightly above the Zacks Consensus Estimate of $15.19 billion, but down 31% from $22.02 billion in the same quarter last year [4]. - For the full year 2024, revenues totaled $66.52 billion, missing the Zacks Consensus Estimate of $66.84 billion and reflecting a 14% decline from $77.79 billion in 2023 [5]. Segment Performance - The Commercial Airplanes segment saw revenues drop 55% year-over-year to $4.76 billion, with an operating loss of $2.09 billion, significantly worse than the previous year's operating profit of $0.04 million [7]. - Boeing delivered 57 commercial planes during the quarter, a 64% decline compared to the previous year, but maintained a backlog of over 5,500 airplanes valued at $435 billion [8]. - The Defense, Space & Security segment recorded revenues of $5.41 billion, down 20% year-over-year, with an operating loss of $2.26 billion, worsening from a $0.10 billion loss in the prior year [9]. - Global Services revenues improved by 6% year-over-year to $5.12 billion, with an operating income of $998 million, up 19% from the previous year [10]. Financial Condition - Boeing ended 2024 with cash and cash equivalents of $13.80 billion and short-term investments of $12.48 billion, compared to $12.69 billion and $3.27 billion at the end of 2023 [11]. - The company reported a long-term debt of $52.59 billion, an increase from $47.10 billion at the end of 2023 [11]. - Operating cash outflow for 2024 was $12.08 billion, compared to an inflow of $5.96 billion in 2023, while free cash outflow totaled $14.31 billion against an inflow of $4.43 billion in the previous year [12]. Market Sentiment - Recent estimates for Boeing have trended downward, with a consensus estimate shift of -104.31% indicating a negative outlook [13]. - The company currently holds a subpar Growth Score of D and a Momentum Score of F, resulting in an overall VGM Score of F, placing it in the bottom 20% for investment strategies [14]. - The outlook suggests a continued downward trend in estimates, with Boeing holding a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15].

Group 1 - The article discusses the net orders and deliveries for Boeing and Airbus in 2025, indicating a return to a monthly analysis series based on reader feedback [1] - The goal of the investing group, The Aerospace Forum, is to discover investment opportunities in the aerospace, defense, and airline industry, highlighting significant growth prospects [1] - The analysis is driven by data-informed insights, providing context to industry developments and their potential impact on investment theses [1] Group 2 - The investing group offers direct access to data analytics monitors, enhancing the research capabilities for investors in the aerospace sector [1]