Core Insights - Boeing is experiencing a turnaround with improved operational performance, record backlogs, and increased commercial production, although management cautions that the company has not fully turned the corner [3][4][7] Production and Delivery - The 737 program is stabilizing at a production rate of 42 airplanes per month, with plans to increase to 47 in 2026, and has received positive customer feedback on quality [1][6] - Boeing delivered 160 airplanes in Q4 and 600 for the year, with the 737 program accounting for 117 deliveries in the quarter and 447 for the year [7][8] - The 787 program is stabilizing at approximately 8 airplanes per month, targeting an increase to 10 later in 2026, with 27 deliveries in Q4 and 88 for the year [8] Financial Performance - Q4 revenue reached $23.9 billion, the highest quarterly total since 2018, with a full-year revenue of $89.5 billion, up 34% year-over-year [5][15] - Free cash flow for Q4 was positive at $375 million, while the full-year free cash flow was a usage of $1.9 billion, showing significant improvement year-over-year [5][15] Defense and Services - Boeing Defense, Space & Security (BDS) revenue rose 37% to $7.4 billion in Q4, despite a $565 million loss on the KC-46A tanker [11][12] - BDS booked $15 billion in orders during the quarter, lifting the backlog to a record $85 billion [12] Strategic Initiatives - Boeing has implemented process changes to reduce complexity, including simplifying over 5,100 work instruction documents [2][7] - The company completed the acquisition of Spirit AeroSystems to support production stability and improve safety and quality across factories and the supply chain [16] Future Outlook - Boeing reaffirmed guidance for 2026 free cash flow of $1 billion to $3 billion, with expectations for improved cash flow driven by higher commercial deliveries and better BDS performance [17][19] - Management anticipates capital expenditures to rise to about $4 billion in 2026, including investments related to Spirit [17]

Earnings Reports - Boeing (BA) reported a Q4 loss of -$1.91 per share after excluding a one-time sale of Digital Aviation Solutions for $10.55 billion, with revenues up +57% year over year to $23.95 billion [1] - UnitedHealth (UNH) beat earnings estimates by 2 cents at $2.11 per share, but revenues fell slightly by -0.04% to $113.22 billion, leading to a pre-market share drop of -15% [2] - General Motors (GM) exceeded earnings expectations with $2.51 per share, a +14% beat, and reported quarterly revenues of $45.29 billion, down -1.83%, while announcing a +20% increase in dividends [3] - United Parcel Service (UPS) posted earnings of $2.38 per share on revenues of $24.48 billion, beating estimates by +7.2% and +1.95% respectively, although shares were trading modestly down after initial gains [4] Market Expectations - January Consumer Confidence is anticipated to be reported at 90, slightly above the previous month's 89.1, but still below the 100 points average seen over the past four years, reflecting consumer strain from a delicate labor market and policy shifts [5] Upcoming Earnings - Texas Instruments (TXN) is expected to report Q4 earnings with flat year-over-year growth but a +10.7% increase in revenues, continuing a streak of eight consecutive quarterly earnings beats, with the stock up +13% since the start of the year [6]

Financial Performance - The company reported revenue of $23.9 billion for the quarter, a 57% increase, marking the highest quarterly total since 2018, driven by improved operational performance and higher commercial deliveries [16][17] - Core earnings per share reached $9.92, primarily reflecting a gain of $11.83 from the digital aviation solutions divestiture [16] - Free cash flow was positive at $375 million, slightly exceeding expectations due to higher commercial deliveries and improved working capital [16][27] Business Line Performance - The Boeing Commercial Airplanes (BCA) segment delivered 160 airplanes in the quarter and 600 for the year, the highest annual total since 2018, with revenue of $11.4 billion [16][17] - The Defense, Space & Security (BDS) segment delivered 37 aircraft in the quarter, with revenue growing 37% to $7.4 billion, despite a negative operating margin of 6.8% [21][22] - The Global Services (BGS) segment reported revenue of $5.2 billion, up 2%, with an adjusted operating margin of 18.6% [24] Market Data - BCA booked 336 net orders in the quarter, including significant orders for the 737-10 and 787-9, ending the year with a record backlog of $567 billion [17][19] - BDS secured $15 billion in orders during the quarter, contributing to a record backlog of $85 billion [21] - BGS achieved an annual high of $28 billion in orders for 2025, ending the year with a record backlog of $30 billion [24] Company Strategy and Industry Competition - The company is focused on stabilizing its business, executing development programs, and improving its culture to restore trust with stakeholders [3][10] - A significant investment was made in the Spirit AeroSystems acquisition to enhance safety and quality across operations [8][9] - The company aims to increase production rates for the 737 and 787 models, with plans to ramp up to 47 and 10 airplanes per month, respectively [6][19] Management Commentary on Operating Environment and Future Outlook - Management acknowledged challenges in certification timelines for the 737 MAX derivatives and the 777-9 but expressed confidence in meeting revised schedules [10][11] - The company anticipates positive free cash flow of $1-$3 billion in 2026, despite some temporary impacts from the Spirit acquisition and delayed certifications [28][30] - Management emphasized the importance of continuous improvement and operational stability to meet customer commitments and enhance future performance [14][15] Other Important Information - The company completed the $10.6 billion sale of Jeppesen, strengthening its balance sheet while retaining essential digital capabilities [9] - A new five-year labor agreement was ratified with the IAM workforce in St. Louis, supporting production stability [8] Q&A Session Summary Question: Clarification on cash flow building blocks - Management discussed the excess advances and customer considerations, indicating that while both will normalize, excess advances will burn down quicker than customer considerations [41][42] Question: Free cash flow expectations - Management reiterated confidence in achieving $10 billion in free cash flow, emphasizing the need to complete certification programs and ramp up production rates [49][50] Question: Production ramp challenges - Management identified potential bottlenecks in increasing production rates, particularly from 47 to 52 for the 737, and emphasized the importance of managing the supply chain effectively [60][62] Question: BCA margins and Spirit's impact - Management acknowledged that current cash margins for the 737 and 787 are depressed but expect improvements over time, with Spirit's performance contributing positively in the future [68][70] Question: Defense program updates - Management clarified that the charge taken on the KC-46 tanker program is specific to that program and does not reflect on other BDS programs, with plans to deliver 19 tankers in 2026 [83][84]

Financial Performance - The company reported revenue of $23.9 billion for the quarter, a 57% increase, marking the highest quarterly total since 2018, driven by improved operational performance and higher commercial deliveries [16][17] - Core earnings per share reached $9.92, primarily reflecting a gain of $11.83 from the Digital Aviation Solutions divestiture [16] - Free cash flow was positive at $375 million, slightly exceeding expectations due to higher commercial deliveries and improved working capital [16][27] Business Line Performance - The Boeing Commercial Airplanes (BCA) segment delivered 160 airplanes in the quarter and 600 for the year, the highest annual total since 2018, with revenue of $11.4 billion [16][17] - The Defense, Space & Security (BDS) segment delivered 37 aircraft in the quarter, with revenue growing 37% to $7.4 billion, despite a $565 million loss on the KC-46A tanker program [21][22] - The Global Services (BGS) segment reported revenue of $5.2 billion, a 2% increase, with an adjusted operating margin of 18.6% [24] Market Data - BCA booked 336 net orders in the quarter, including significant orders for the 737-10 and 787-9, ending the year with a record backlog of $567 billion [17][19] - BDS secured $15 billion in orders during the quarter, contributing to a record backlog of $85 billion [21] - BGS achieved an annual high of $28 billion in orders for 2025, ending the year with a record backlog of $30 billion [24] Company Strategy and Industry Competition - The company is focused on stabilizing its business, executing development programs, and improving its culture to restore trust with stakeholders [3][10] - A significant investment was made in the Spirit AeroSystems acquisition to enhance safety and quality across operations [9] - The company aims to improve margins and cash flow through better management of risks and contracts in the aerospace market [91][92] Management Commentary on Operating Environment and Future Outlook - Management acknowledged challenges in certification timelines for new aircraft but expressed confidence in meeting revised schedules [10][11] - The company anticipates positive free cash flow of $1-$3 billion in 2026, driven by higher commercial deliveries and improved performance across segments [28][30] - Management emphasized the importance of production stability and continuous improvement to address customer considerations and excess advances [31][32] Other Important Information - The company completed the $10.6 billion sale of Digital Aviation Solutions, strengthening its balance sheet while retaining essential capabilities [9][25] - Cash and marketable securities grew to $29.4 billion, with a debt balance of $54.1 billion, reflecting the acquisition of Spirit AeroSystems [25][26] Q&A Session Summary Question: Clarification on cash flow building blocks - Management indicated that excess advances and customer considerations are expected to normalize over time, with excess advances burning down quicker than considerations [41][42] Question: Free cash flow expectations - Management reiterated confidence in achieving $10 billion in free cash flow, emphasizing the need to complete certification programs and ramp up production rates [49][50] Question: Production ramp challenges - Management discussed the challenges in increasing production rates for the 737 and 787 programs, highlighting the need for improved supply chain performance [60][62] Question: Defense program updates - Management addressed the discrete charge on the KC-46A tanker program, stating it reflects increased costs but is necessary to ensure timely deliveries [83][84] Question: Broader industry profitability concerns - Management acknowledged the challenges in achieving profitability in the aerospace industry and emphasized the need for better risk management and contract pricing strategies [91][92]

Financial Performance - The company reported revenue of $23.9 billion for Q4 2025, a 57% increase, marking the highest quarterly total since 2018, driven by improved operational performance and higher commercial deliveries [16][26] - Core earnings per share reached $9.92, primarily reflecting a gain of $11.83 from the digital aviation solutions divestiture [16] - Free cash flow was positive at $375 million, slightly exceeding expectations due to higher commercial deliveries and improved working capital [16][26] Business Line Performance - Boeing Commercial Airplanes (BCA) delivered 160 airplanes in Q4 and 600 for the year, the highest annual total since 2018, with revenue of $11.4 billion and an operating margin of negative 5.6% [16][17] - BCA booked 336 net orders in Q4, including significant orders from Alaska Airlines and Emirates, ending the year with a record backlog of $567 billion [17][18] - Boeing Defense, Space & Security (BDS) delivered 37 aircraft in Q4, with revenue growing 37% to $7.4 billion, despite a negative operating margin of 6.8% due to a loss on the KC-46A tanker [20][21] - Boeing Global Services (BGS) reported revenue of $5.2 billion, up 2%, with an adjusted operating margin of 18.6%, driven by improved government volume [24][25] Market Performance - The backlog for BCA includes over 6,100 airplanes, with strong demand for the 737 and 787 models, indicating a robust market position [17][18] - BDS secured $15 billion in orders during Q4, contributing to a record backlog of $85 billion, reflecting strong demand in defense [20][21] Company Strategy and Industry Competition - The company is focused on stabilizing its business, executing development programs, and improving its culture to enhance performance and stakeholder trust [3][10] - Boeing is investing in production capacity and quality improvements, including a new North Line in Everett and factory expansions for the 787 program [5][6][9] - The company aims to address challenges in production rates and certification timelines for new aircraft models, including the 737 MAX derivatives and 777-9 [10][11] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's turnaround, highlighting significant progress in operational metrics and customer satisfaction [3][10] - The company anticipates positive free cash flow of $1-$3 billion in 2026, despite challenges related to the Spirit AeroSystems acquisition and delayed aircraft certifications [27][30] - Management acknowledged the need to improve contract management and risk assessment to enhance profitability in the aerospace industry [59][60] Other Important Information - The company completed the acquisition of Spirit AeroSystems and the $10.6 billion sale of Jeppesen, strengthening its balance sheet [9][26] - The defense portfolio is expected to return to historical performance levels as the company continues to drive execution and transition to new contracts [24] Q&A Session Summary Question: Clarification on cash flow building blocks - Management indicated that excess advances and customer considerations are expected to normalize over time, with excess advances burning down quicker than customer considerations [35][36] Question: Expectations for normalized free cash flow - Management reiterated confidence in achieving $10 billion in free cash flow, emphasizing the importance of ramping up production rates and improving performance across business segments [39][40] Question: Production ramp challenges - Management discussed the challenges of increasing production rates for the 737 and 787 programs, emphasizing the need for supply chain stability and effective management of inventory levels [42][44] Question: Defense program updates - Management addressed the discrete charge on the KC-46A tanker program, stating that it reflects increased costs but is necessary to ensure timely deliveries [55] Question: Geopolitical risks and procurement shifts - Management acknowledged the dynamic nature of geopolitical risks but expressed confidence in the U.S. administration's support for the aerospace industry [62]

Fourth Quarter 2025 Earnings Review Kelly Ortberg President and Chief Executive Officer January 27, 2026 Copyright © 2026 Boeing. All rights reserved. Caution Concerning Forward-Looking Statements Certain statements made today constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressio ...

Boeing reported fourth-quarter revenue ahead of Wall Street expectations. The company posted revenue of $23.95 billion in the final three months of 2025, up 57% from the same period a year earlier and... ...

Boeing (BA) came out with a quarterly loss of $1.91 per share versus the Zacks Consensus Estimate of a loss of $0.4. This compares to a loss of $5.9 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -378.82%. A quarter ago, it was expected that this airplane builder would post a loss of $3.85 per share when it actually produced a loss of $7.47, delivering a surprise of -94.03%.Over the last four quarters, the company has surpass ...

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