📊✈️ Boeing and improving results!
After a wild period, cautious optimism is coming from Boeing $BA. Q1 2025 results point to a positive shift, but it remains overshadowed by ongoing challenges in manufacturing, geopolitics and brand credibility.
🔍 Financial stabilization
The net loss narrowed to $31 million from $355 million last year, a strong signal of improvement.
Revenue rose 18% year-on-year to USD 19.5 billion, slightly beating analysts' expectations (USD 19.45 billion).
Free cash flow came in at a loss of USD 2.3 billion - an improvement on last year's Q1 result of nearly USD 4 billion. The company announces a return to positive FCF in the second half of the year.
🚀 737 MAX: The key to returning confidence
Boeing plans to petition the FAA (U.S. aviation authority) for approval to increase production of the 737 MAX, its best-selling model. The current output of 38 aircraft per month is expected to grow gradually to 52 units per month.
However, the company continues to work to remedy the effects of safety incidents.
📦 The driver of the future
Boeing reports an order backlog of over $500 billion.
Deliveries are up nearly 60% year-over-year - from 83 to 130 aircraft.
Commercial Aircraft division reports sales of USD 8.1 billion (+75% y/y).
CEO Kelly Ortberg confirms that global demand for aircraft remains very strong. The company is redirecting aircraft destined for Chinese airlines, which are currently not taking orders due to the trade war, to other customers.
⚔️ Trade war as a brake
Trump's new wave of tariffs is hitting manufacturers across the aviation industry. Boeing estimates the impact of the tariffs will increase costs and potentially jeopardize deliveries.
💰 Strategic Changes
Boeing is selling part of its digital aerospace operations (e.g., navigation firm Jeppesen) to Thoma Bravo for $10.55 billion in cash.
The goal is to streamline operations and focus on key areas such as commercial and defense manufacturing.
🛡️ Defence and new contracts
Defence division lost 9 % of sales (USD 6.3 billion), but the company won a major contract to develop a new F-47 fighter aircraft for the US Air Force.
The contract could be a milestone in the renewal of the defence division, which has struggled with quality and high costs in recent years.
What is your opinion of Boeing? Has it put all its problems behind it or does it still need to gain the confidence of the market?
I don't know what's interesting about Boeing and would focus on other stocks. From this sector, I would pick maybe $UAL.
The results aren't bad and the company is finally starting to do well, but they still have a lot of problems and I certainly won't be buying their stock.