Boeing (BA -9.48%) stock soared 6.5% through 10:30 a.m. ET Wednesday morning after positive comments from CFO Brian West encouraged buyers to return to the stock.
Speaking at a Bank of America Global Industrials Conference, West delivered positive updates on Boeing's increasing 737 production and stabilizing production numbers of 787s, on cost-cutting, and free cash flow as well.
NYSE: BA
Key Data Points
Boeing's big update
Boeing burned about $14 billion in cash last year, as The Wall Street Journal reports, but West says the company is "off to a good start for" 2025. Management feared Boeing would burn through another $4 billion in the first quarter, but West now says the actual number could be "hundreds of millions of dollars less than anticipated."
This still means Boeing's going to report negative free cash flow, mind you. There seems no chance of that number turning positive in 2025. Still, this is an improvement. Also improved, says West, is the company's airplane production rate, as Boeing stabilizes 787 production at five units per month, and makes "fantastic" progress toward hitting a 38-planes-per-month production rate on its 737 MAX.
Production across all plane types in the first two months of 2025 was 89 units, 35 better than in January and February 2024, and a 65% year-over-year increase.
Is Boeing stock a buy?
Long story short, there's good reason for Boeing's existing shareholders to be happier today. There may not yet be reason enough for new buyers to buy the stock, however.
Consider: Boeing reported $11.8 billion in losses last year, and $14.3 billion in negative free cash flow. Analysts hope the company will (barely) return to profitability this year, but keep on burning cash. Even if West is right, and Boeing burns "hundreds of millions of dollars less than anticipated," it's still probably looking at negative FCF of $4.5 billion or so.
Meanwhile, the company's $130 billion market cap prices it at a steep 32.5 times 2026 earnings... and nearly 20 times projected 2029 earnings. Boeing's not cheap enough to buy, folks. At least not yet.
