NYSE:BA
BOEING CO
Aerospace titan delivering wide-body and narrow-body jetliners, defense systems, and space exploration solutions to a global market.
Key Metrics
Investment Thesis
Bull Case
Investors may buy BA as a value play on a recovering aerospace cycle with a massive order book backing future revenue growth; The stock offers potential for significant upside if production rates normalize and legacy issues resolve, supported by high gross margins in commercial aviation; Defense spending increases provide a stable counter-cyclical revenue stream to offset commercial volatility.
Bear Case
Potential buyers should avoid BA due to persistent execution risks that have historically led to costly delays and safety concerns; The balance sheet shows negative accumulated other comprehensive income of $10.28B and a retained earnings deficit, signaling long-term capital erosion; High accounts payable of $13.11B combined with volatile operating cash flows suggests ongoing liquidity pressure from supply chain dependencies.
About BOEING CO
Boeing Co (BA) designs, develops, manufactures, services, and sells commercial jetliners, military aircraft, satellites, missile defense components, and space systems globally. The company serves commercial airlines, government agencies, and private customers with its iconic 737, 767, 777, and 787 families of aircraft alongside its defense portfolio.
Analysis
Management Discussion
The company reports a significant rebound in net profit of $2.24B for 2025 after a loss of $11.83B in 2024, driven by normalized operations following safety-related pauses. Revenue surged to $89.46B, up from $77.79B in 2023, indicating strong order fulfillment and market demand despite earlier headwinds. Cash flow from operations improved to $1.06B, though the company maintains substantial deferred revenue of $59.40B reflecting backlog strength.
Industry Overview
The global aerospace and defense industry is cyclical but resilient, driven by fleet renewal programs, rising cargo demand, and sustained government defense spending worldwide. Competitors like Airbus face similar production scaling challenges while regulatory bodies increasingly prioritize safety and sustainability standards. Consolidation trends favor established players with diversified portfolios capable of managing complex supply chains.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $66.61B | $77.79B | $66.52B | $89.46B |
| Cost of Revenue | $63.11B | $70.07B | $68.51B | $85.17B |
| Gross Profit | $3.50B | $7.72B | $-1.99B | $4.29B |
| Operating Expenses | $7.05B | $8.50B | $8.72B | $8.0M |
| Operating Income | $-3.55B | $-773.0M | $-10.71B | $4.28B |
| R&D | $2.85B | $3.38B | $3.81B | $3.62B |
| G&A | $4.19B | $5.17B | $5.02B | $6.09B |
| Stock-Based Comp | $725.0M | $690.0M | $407.0M | $426.0M |
| D&A | $1.98B | $1.86B | $1.84B | $1.95B |
| Amortization | $241.0M | $235.0M | $223.0M | $204.0M |
| Other OpEx | $10.0M | $-48.0M | $-117.0M | $-9.70B |
| Non-Operating Income | $-1.48B | $-1.23B | $-1.50B | $-1.65B |
| Pre-Tax Income | $-5.02B | $-2.00B | $-12.21B | $2.63B |
| Income Tax | $31.0M | $237.0M | $-381.0M | $397.0M |
| Continuing Ops | $-5.05B | $-2.24B | $-11.83B | $2.24B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-5.05B | $-2.24B | $-11.83B | $2.24B |
| Minority Interest | $-118.0M | $-20.0M | $-12.0M | $3.0M |
| Net to Common | $-4.93B | $-2.22B | $-11.82B | $2.23B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $109.52B | $109.28B | $128.00B | $128.46B |
| Cash & Equivalents | $14.61B | $12.69B | $13.80B | $10.92B |
| Marketable Securities | $2.61B | $3.27B | $12.48B | $18.48B |
| Accounts Receivable | $2.52B | $2.65B | $2.63B | $2.92B |
| Other Current Assets | $89.79B | $90.66B | $99.08B | $96.14B |
| Long-Term Assets | $27.58B | $27.74B | $28.36B | $39.78B |
| PP&E (Net) | $10.55B | $10.66B | $11.41B | $15.36B |
| Intangibles | $2.31B | $2.09B | $1.96B | $1.57B |
| Goodwill | $8.06B | $8.09B | $8.08B | $17.27B |
| Operating Leases | $1.45B | $1.69B | $1.98B | $2.12B |
| LT Investments | $983.0M | $1.03B | $999.0M | $1.05B |
| Other LT Assets | $3.28B | $3.20B | $2.98B | $1.41B |
| Total Assets | $137.10B | $137.01B | $156.36B | $168.24B |
| Current Liabilities | $90.05B | $95.83B | $97.08B | $108.11B |
| Accounts Payable | $10.20B | $11.96B | $11.36B | $13.11B |
| Current Leases | $276.0M | $296.0M | $324.0M | $335.0M |
| Deferred Revenue | $53.08B | $56.33B | $60.33B | $59.40B |
| Other Current Liab | $4.91B | $4.91B | $954.0M | $8.13B |
| Long-Term Liabilities | $62.90B | $58.41B | $63.20B | $54.66B |
| LT Operating Leases | $1.30B | $1.52B | $1.77B | $1.93B |
| Other LT Liab | $61.59B | $56.90B | $61.43B | $52.73B |
| Total Liabilities | $152.95B | $154.24B | $160.28B | $162.78B |
| Shareholders' Equity | $-15.85B | $-17.23B | $-3.91B | $5.46B |
| Paid-In Capital | $9.95B | $10.31B | $18.96B | $21.44B |
| Retained Earnings | $29.47B | $27.25B | $15.36B | $17.25B |
| AOCI | $-9.55B | $-10.30B | $-10.91B | $-10.28B |
| Treasury Stock | $50.81B | $49.55B | $32.39B | — |
| Total L&E | $137.10B | $137.01B | $156.36B | $168.24B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-5.05B | $-2.24B | $-11.83B | $2.24B |
| Non-Cash Adjustments | $5.14B | $2.72B | $-15.50B | $-3.48B |
| Working Capital Changes | $3.43B | $5.48B | $15.25B | $2.31B |
| Cash from Operations | $3.51B | $5.96B | $-12.08B | $1.06B |
| Capital Expenditures | $1.22B | $1.53B | $2.23B | $2.94B |
| Cash from Investing | $4.37B | $-2.44B | $-11.97B | $499.0M |
| Dividends Paid | — | — | — | $331.0M |
| Cash from Financing | $-1.27B | $-5.49B | $25.21B | $-3.76B |
| FX Effect | $-73.0M | $30.0M | $-47.0M | $40.0M |
| Net Change in Cash | $6.54B | $-1.93B | $1.11B | $-2.16B |
| Beginning Cash | $8.10B | $14.65B | $12.71B | $13.82B |
| Ending Cash | $14.65B | $12.71B | $13.82B | $11.66B |
Frequently Asked Questions
How does BOEING CO make money?
Commercial Airplanes provides the primary revenue stream through the sale and service of passenger and cargo jetliners; Defense, Space & Security delivers combat aircraft, satellites, missiles, and intelligence surveillance reconnaissance systems; Global Services offers maintenance, repair, and overhaul services along with spare parts for commercial and defense fleets.
What are the main risks for BA?
Ongoing challenges regarding aircraft delivery delays, production capacity constraints, and supply chain disruptions that impact revenue recognition; Regulatory scrutiny and potential legal liabilities related to past safety incidents affecting operational reputation; Geopolitical tensions and defense budget fluctuations impacting military contract stability and export controls.
What is BA's competitive advantage?
Unrivaled brand recognition and extensive global dealer networks ensure strong aftermarket demand for its serviceable fleet; Proprietary engineering capabilities allow for continuous aircraft innovation and fuel efficiency improvements; Dominant market share in narrow-body and wide-body segments provides pricing power and long-term order book visibility.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.