Boeing (BA.N) said on Tuesday that it delivered 51 jets in August, a slight dip from the previous month and down from 57 jets a year earlier, as the number of 787 Dreamliners handed to customers declined.
The U.S. planemaker delivered only four 787s, down from nine the prior August. A spokesperson said the drop in deliveries was not due to any production, supply chain or certification problems. That brought total deliveries of its popular wide-body in 2026 to 54 through August.
The company still expects to deliver 90 to 100 787s by the end of the year, the spokesperson said.
Increasing output of the highly profitable twin-aisle jet is crucial to Boeing's financial turnaround.
European rival Airbus (AIR.PA) delivered 57 jets and booked 67 orders in August.
August deliveries included 41 737 MAX planes, Boeing's best-selling jet. Nine were delivered to Southwest Airlines (LUV.N), eight to United Airlines (UAL.O) and five to lessor AerCap (AER.N).
Through August, Boeing has delivered 418 aircraft, the most since 2018, when it delivered 481 jets through the first eight months of the year.
Boeing booked 15 new orders in August - two 737 MAX and 13 787 jets. All were for unidentified customers. There were no cancellations in the month.
Through August, Boeing has booked 453 orders after adjusting for cancellations in 2026.
Archer Aviation (ACHR +2.10%) is a pioneering player in the electric vertical take-off and landing (eVTOL) aircraft space. The company is betting that it can scale eVTOL sales and services into a substantially profitable business over the long term, but it still has a lot of work to do before its operations are set up to generate reliable earnings. One piece of good news is that the company doesn't have to rely entirely on growing organically in order to achieve its goals.
Last month, Archer announced that it had entered into a deal to acquire Boeing's Wisk Aero, Insitu, and SkyGrid subsidiaries. The move immediately spurred a substantial jump for Archer's share price, but what will it mean for the company and its shareholders over the long term?
Image source: Archer Aviation.
Archer's latest acquisition push looks encouraging Of the three units Archer acquired from Boeing, Wisk is the most clearly specialized in eVTOL aircraft. In the press release announcing the acquisitions, Archer describes Wisk as "the only company that has designed, built, and flown six generations of eVTOL aircraft, amassing 1,700+ flight tests." Meanwhile, SkyGrid is touted in the press release for its air-traffic management solution and its foundational potential for the future of automated airspace, and Insitu's pioneering role in the design and manufacturing of uncrewed aircraft systems (UAS) is touted.
Archer is acquiring these units from Boeing in an all-stock deal. With the completion of the purchases, Boeing will receive newly created Archer stock that will give it a 16.5% stake in the company. In addition, Boeing will receive warrants that grant it the right to purchase up to $200 million in additional stock. With the Archer issuing so much new stock in order to fund the acquisitions, that means that there will be a substantially dilutive impact for current shareholders. On the other hand, it could wind up being well worth it.
While heavy dilution means that shareholders will see the percentage-based size of their stake in Archer reduced, having Boeing as a large stakeholder and active partner comes with a wide range of potential benefits. As part of the deal, the two companies will enter into a technology-sharing agreement. Boeing will also retain access to Wisk's autonomous flight software for defense and commercial projects, which has positive aspects for Archer because it should support the continued integration and evolution of the tech.
Archer is rapidly diversifying Since going public in 2021 through a merger with a special purpose acquisition company (SPAC), Archer's growth story has primarily centered around the development, testing phases, and timeline for the commercial debut of its Midnight eVTOL aircraft. While Midnight is still important for Archer, the story surrounding the company and its stock has been changing rapidly through partnerships and acquisition moves.
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As noted by Archer CEO Adam Goldstein in the press release announcing the purchases from Boeing, the acquisitions are "the next big step forward in becoming a diversified platform, rapidly growing our revenue base, and bringing scale" to the business. Insitu alone is generating over $200 million in annual revenue, operating in 35 different countries, and generating profits. With the acquisition of the business, Archer's sales profile will immediately get a substantial boost -- and its margin profile should see meaningful improvement.
The partnership with Boeing and integration of Insitu, SkyGrid, and Wisk should provide valuable infrastructure that has complementary impacts across the company's business. In addition to presenting growth opportunities in their own right and supporting the evolution of the Midnight eVTOL project, the units that will be integrated into Archer will likely also help support the hybrid VTOL Halo and Thunder crafts that it developed in conjunction with Anduril and its ZEE aviation AI software model.
Along with expanding its manufacturing partnership with Stellantis, Archer's diversification moves are better positioning the company for long-term viability. The company's chances of achieving profitability solely on the back of its Midnight eVTOL while having to handle scaling manufacturing to the point of even achieving positive gross margins always looked like a long shot, and relying more on partnerships and other avenues to growth in the aviation space is a smart move. Archer stock is still a high-risk play, but its bets on autonomous aerial technologies could pay off over the long term even if ramping for the commercial eVTOL market proceeds at a relatively slow pace.
California State Teachers Retirement System raised its stake in shares of The Boeing Company (NYSE:BA – Free Report) by 20,689.6% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 245,894,334 shares of the aircraft producer’s stock after acquiring an additional 244,711,560 shares during the quarter. California State Teachers Retirement System owned approximately 31.11% of Boeing worth $53,228,746,000 at the end of the most recent reporting period.
A number of other institutional investors and hedge funds have also made changes to their positions in BA. Newport Trust Company LLC lifted its stake in shares of Boeing by 1.0% during the 4th quarter. Newport Trust Company LLC now owns 29,485,294 shares of the aircraft producer’s stock worth $6,401,847,000 after purchasing an additional 286,848 shares during the last quarter. Geode Capital Management LLC grew its stake in Boeing by 3.2% in the fourth quarter. Geode Capital Management LLC now owns 17,025,435 shares of the aircraft producer’s stock valued at $3,679,592,000 after purchasing an additional 533,753 shares during the last quarter. Fisher Asset Management LLC grew its stake in Boeing by 2.5% in the fourth quarter. Fisher Asset Management LLC now owns 5,640,900 shares of the aircraft producer’s stock valued at $1,224,752,000 after purchasing an additional 135,860 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in Boeing by 3.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 4,370,415 shares of the aircraft producer’s stock worth $948,905,000 after purchasing an additional 138,469 shares in the last quarter. Finally, Jupiter Topco LLC purchased a new stake in shares of Boeing during the second quarter valued at about $911,878,000. 64.82% of the stock is currently owned by hedge funds and other institutional investors.
Boeing Stock Down 0.0% BA stock opened at $212.15 on Monday. The firm’s fifty day simple moving average is $219.63 and its 200-day simple moving average is $220.07. The company has a market capitalization of $167.68 billion, a P/E ratio of 91.84 and a beta of 1.21. The company has a debt-to-equity ratio of 6.77, a current ratio of 1.14 and a quick ratio of 0.33. The Boeing Company has a 12 month low of $176.77 and a 12 month high of $254.35.
Boeing (NYSE:BA – Get Free Report) last issued its earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.34) by ($0.42). The business had revenue of $24.56 billion for the quarter, compared to analysts’ expectations of $24.26 billion. Boeing had a negative return on equity of 346.82% and a net margin of 2.41%.The company’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same period last year, the business earned ($1.24) EPS. As a group, equities research analysts forecast that The Boeing Company will post -0.87 earnings per share for the current year. Analyst Upgrades and Downgrades BA has been the topic of a number of recent analyst reports. BNP Paribas Exane upgraded shares of Boeing from an “underperform” rating to an “outperform” rating and raised their price target for the company from $230.00 to $300.00 in a report on Monday, August 3rd. Argus upgraded shares of Boeing from a “hold” rating to a “buy” rating and set a $265.00 price objective for the company in a research note on Tuesday, August 11th. UBS Group initiated coverage on shares of Boeing in a research report on Tuesday, August 11th. They set a “buy” rating for the company. Robert W. Baird set a $300.00 target price on shares of Boeing in a research note on Wednesday, July 29th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Boeing in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $272.58.
Read Our Latest Analysis on BA
More Boeing News Here are the key news stories impacting Boeing this week:
Positive Sentiment: Recovery and backlog support the bull case: Recent coverage highlights Boeing’s improving financial performance, growing commercial-aircraft demand, record backlog and improving cash flow. Analysts also see potential upside from defense growth and a valuation discount relative to some aerospace peers. Boeing vs. Lockheed Martin: Which Aerospace Stock Is a Better Buy in 2026? Positive Sentiment: Longer-term demand remains constructive: Boeing’s projection for substantial growth in Africa’s commercial aircraft fleet by 2045 reinforces the company’s long-range aircraft-demand opportunity. In addition, Albany International extended its agreement to manufacture composite fuselage frames for Boeing’s 787 program, supporting continued supplier activity. Boeing Projects Africa’s Commercial Aircraft Fleet in 2045 Positive Sentiment: Institutional interest signals potential turnaround value: Reports that David Tepper and Paul Tudor Jones initiated Boeing positions may be encouraging investors who believe the company’s recovery prospects are stronger than its recent technical weakness suggests. What Do Tepper, Tudor See in Boeing That the Market Doesn’t? Neutral Sentiment: Recovery remains incomplete: Boeing’s revenue growth and narrowing aircraft-production losses are positive trends, but the company continues to face elevated valuation, weak profitability and significant balance-sheet leverage while it works through its turnaround. Should You Buy Boeing Stock While It Still Loses Money On Airplanes? Negative Sentiment: Spirit AeroSystems deal is weighing on sentiment: Boeing’s $8.4 billion acquisition has reportedly uncovered larger-than-expected liabilities and continues to lose money, raising concerns that integrating the supplier could delay the payoff from fixing Boeing’s supply chain. Boeing’s $8.4 Billion Deal Is Bleeding Red Ink Negative Sentiment: FAA safety enforcement renews quality concerns: Boeing paid a $3.1 million FAA fine tied to alleged interference with safety oversight, certification of non-airworthy aircraft and hundreds of quality-system violations related to the 737 MAX. The company’s failure to publicly disclose the penalty has added reputational and regulatory risk. Boeing paid $3.1M FAA safety fine without public disclosure Negative Sentiment: Execution risks remain: Production delays, cancellations and challenges surrounding the 777X continue to cloud Boeing’s outlook, limiting how quickly demand and backlog can translate into earnings and cash flow. About Boeing (Free Report)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
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For six straight quarters, from the beginning of 2024 all the way through mid-2025, Boeing (BA +0.83%) stock couldn't catch a break. Production volumes were crippled in the wake of the Alaska Airlines door blowout, airplanes piled up, losses mounted, and free cash flow dried up. Every single quarter, Boeing lost money and burned cash -- $12.4 billion in total GAAP losses, and $16.8 billion in negative free cash flow.
But then, a miracle happened.
By mid-2025, Boeing had mostly righted the ship, stabilized its supply chain, and resolved its quality-control issues. Q2 2025 saw Boeing deliver more airplanes in a single quarter than it had ever done since 2018. Revenue rose, losses shrank, and by Q3 2025, free cash flow had turned positive again. While GAAP profitability has remained elusive since, in three of the past four quarters, the aerospace giant has generated positive free cash flow -- $631 million generated last quarter alone -- laying the groundwork for a return to consistent profitability in the future.
Now Boeing just needs to stick the landing.
Image source: Getty Images.
Boeing has a plan After the Alaska Airlines debacle, the U.S. Federal Aviation Administration ordered Boeing to slow down production and ensure each plane was shipshape before delivery. Boeing was initially instructed to take its time and build no more than 38 of its 737 airliners per month, a limit later raised to 42 planes. The company is currently seeking permission to accelerate that rate to 47 planes per month, with plans to increase it to 52, and eventually 63, planes per month.
More planes produced should translate into more planes delivered -- and more cash collected on delivery. Analysts polled by S&P Global Market Intelligence forecast Boeing to generate more than $2.3 billion in free cash flow this year, growing to $6.2 billion in 2027, $9.8 billion in 2028, $13 billion in 2029, and $15 billion in 2030.
Yes, you read that right. Boeing's probably going to return to full-year positive FCF this year, grow that dramatically over the next five years, and even then still be growing free cash flow at a healthy 15% per year.
Assuming all goes as planned, Boeing is trading today at just 11 times its projected FCF five years from now.
What does Boeing need to do to make this happen? The good news here is that the issues that upset Boeing's apple cart last time around -- botched introduction of new products -- aren't likely to arise over the next five years, because Boeing doesn't plan to introduce any completely new "clean sheet" models during this period.
New variants of the 737 are undergoing flight tests and certification, however, as is a larger 777-9 airliner, and those have the potential to cause problems. But so long as Boeing keeps a tight focus on quality control, it should have a smooth flight from barely positive free cash flow today to massively profitable $15 billion annual FCF in 2030.
Key to this effort will be taking control over the company's Spirit Aerosystems subsidiary, its supplier of 737 fuselages -- and the company responsible for building the specific 737 that blew out over Oregon in 2024 -- and also turning that business profitable. As The Wall Street Journal reported last week, Boeing's $4.7 billion repurchase of Spirit last year actually cost Boeing closer to $10.3 billion once debt and obligations to perform "money pit" contracts are factored in.
This obstacle isn't insurmountable for a company that may soon make $15 billion a year in cash profit. More importantly, fixing Spirit's quality issues is key to Boeing being allowed to increase production to reach that $15 billion goal -- but it will be a near-term drag on financial results.
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What else Boeing needs to do And Boeing's to-do list doesn't end there; it doesn't end with the Commercial business.
As I pointed out last month, Boeing's defense business is once again profitable, and recently booked a major $131.2 billion contract to upgrade global F-15 fighter jet fleets. Once a headwind for Boeing, the defense business could now become a second tailwind as positive profit margins begin to turn a growing revenue stream into a second source of profit.
For this to play out perfectly, Boeing needs to avoid the temptation to underbid competitors to win big Pentagon projects, such as the 2011 KC-X Tanker project, which is still racking up losses to this day. Boeing should also probably abandon its ill-fated Starliner spacecraft program, which still isn't flying, and is looking increasingly obsolete as SpaceX works to make its Starship spacecraft operational.
So, what does Boeing need to do to ensure its turnaround sticks? Keep doing the things that make it money, and stop doing the things that lose it money. Ultimately, it's as simple as that.
Boeing and Airbus are both showing robust recovery in deliveries, with combined output near pre-pandemic levels and strong order backlogs. Airbus leads the 2026 order race, securing 1,024 net orders versus Boeing's 438, and holds a $23.1 billion advantage in net order value. Delivery volumes are up 12% year-over-year for both, with Airbus surpassing its 2018 benchmark and Boeing recovering to 88% of pre-crisis levels.
An Amazon Prime Air cargo flight overran a runway and crashed while landing at Miami International Airport on Sunday, prompting the closure of all runways and taxiways, airport officials said.
Prime Air Flight 7598 overran the airport's diagonal runway at about 2 p.m. EDT (1800 GMT) and was disabled at the airport's northwest end, officials said. Amazon and the Miami-Dade Aviation Department confirmed that an incident occurred as the plane was trying to land.
All runways and taxiways at the Miami airport were closed as of 3 p.m. EDT. Travelers should "expect significant delays and potential cancellations," U.S. Transportation Secretary Sean Duffy said in a post on X.
National Public Radio, citing Miami-Dade Fire Rescue, reported "multiple patients" from the incident.
The plane was a Boeing 767-300 that had departed from San Juan, Puerto Rico, according to the Federal Aviation Administration. Cargo airline 21 Air operated the plane for Amazon, an Amazon spokesperson said in a statement.
The cargo airline did not immediately respond to an email seeking comment.
Reuters photos after the crash showed the jet with its nose on the ground and tail tilted up. The right side of the plane had what appeared to be scorch marks.
Amazon is still gathering details about what happened, company spokesperson Kelly Nantel said. "We're working closely with local authorities and officials to understand exactly what happened," Nantel said in a statement. "Right now, our absolute priority is the safety, well-being, and care of everyone involved."
The Federal Aviation Administration said it will investigate the crash.
The payment equals only half a percent of quarterly free cash flow, leaving cultural accountability as the real issue. Summary
The fine is financially irrelevant; the underlying production failures are not.
Boeing BA, the aircraft manufacturing giant, climbed approximately 0.4% to $211.40 Friday even after investors learned it paid a previously undisclosed $3.1 million Federal Aviation Administration penalty. The payment settled alleged safety and production violations uncovered between September 2023 and February 2024.
The findings were ugly. Regulators identified hundreds of quality-system failures, two unairworthy aircraft submitted for approval and interference with employees carrying out regulatory duties. Some violations emerged after the January 2024 Alaska Airlines 737 MAX 9 door-plug blowout. Boeing paid the full proposed penalty in January 2026.
But $3.1 million barely dents Boeing's wallet. It represents roughly 0.5% of the company's $631 million in second-quarter free cash flow and only 0.013% of quarterly revenue. The real risk is not the fine—it is whether Boeing can prevent production pressure from steamrolling quality control again. At $211.40, the stock sits just 0.19% above its $210.99 GF Value, leaving investors with almost no valuation cushion if execution cracks return.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Aerospace investing offers a choice between established giants and emerging pioneers. Can the recovery at Boeing Co (BA +0.83%) outpace the high-growth potential of lunar exploration specialist Intuitive Machines Inc (LUNR +0.75%) for your portfolio?
Boeing is a global leader in commercial aviation and defense systems, currently navigating a complex operational turnaround. Intuitive Machines focuses on the nascent lunar economy, providing spacecraft and data services for NASA and commercial clients. This comparison explores whether stability or frontier growth is the better bet today.
The case for BoeingBoeing operates as a major player in the industrial stocks category, serving a diverse global market through its commercial aircraft and defense segments. In its latest annual report, filed for 2025, the company noted that the U.S. government and commercial airlines are its primary customers. The company is currently integrating Spirit AeroSystems and maintains customer concentration risk as a significant portion of revenue comes from government contracts.
In FY 2025, revenue reached nearly $89.5 billion, representing a significant 35% increase compared to the previous year. This growth helped the company achieve a net income of approximately $2.2 billion, resulting in a net margin of close to 2.5%. The recovery in deliveries contributed to this improved bottom-line performance compared to the heavy losses seen in previous cycles.
As of its December 2025 balance sheet, the current ratio is approximately 1.2x, measuring the company's ability to pay short-term debts with current assets. The debt-to-equity ratio, which measures total debt against shareholder equity, is roughly 10.0x. Free cash flow was negative $1.9 billion, and stock-based compensation, or SBC for short, represented roughly 40% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Intuitive MachinesIntuitive Machines operates in the specialized niche of space infrastructure and lunar logistics, building spacecraft and operating data networks. In its latest annual report, filed for fiscal year 2025, the company noted it provides services to NASA through several major contracts. High customer concentration remains a factor as government contracts provide the bulk of its current project pipeline, which the company expanded through its 2026 acquisition of Lanteris to include geostationary satellite manufacturing.
In FY 2025, revenue reached approximately $210 million, which was a decline of nearly 8% year-over-year. The company reported a net loss of roughly $83.3 million for the period, resulting in a net margin of approximately negative 40%. These results reflect the early stage nature of the aerospace sector, where front-heavy research costs and mission-based revenue cycles often lead to annual fluctuations.
As of its December 2025 balance sheet, the company maintained a healthy current ratio of nearly 5.0x, indicating a strong liquidity position. Its debt-to-equity ratio is roughly negative 0.5x, meaning total liabilities exceed shareholder equity. Free cash flow was negative $56 million, reflecting the high capital requirements needed for ongoing spacecraft development and the mission infrastructure required to support lunar exploration.
Risk profile comparisonBoeing faces significant operational hurdles, particularly with production rates for the 737 and 787 programs. The company also manages financial exposure from fixed-price defense contracts and the impact of labor strikes in 2024 and 2025. Dependence on U.S. government spending priorities remains a critical factor for long-term stability. It competes for market share against large global players like Airbus (EADSF -0.02%).
Intuitive Machines deals with the extreme technical risks inherent in spaceflight, where launch failures or delays can disrupt operations. The company relies on a limited supply chain and external launch providers to reach the moon. Financial risks are also significant due to its history of operating losses and reliance on external capital to fund development. It faces competition from other specialized firms such as Rocket Lab USA Inc (RKLB +0.70%) and Lockheed Martin Corp (LMT -1.44%).
Valuation comparisonWhile the P/S ratio for Boeing is lower, Intuitive Machines carries a much higher premium based on future earnings estimates and its Forward P/E.
MetricBoeingIntuitive MachinesForward P/E49x3,333xP/S ratio1.7x4.2xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Intuitive Machines started fiscal 2026 with its strongest quarter in history, delivering record revenue of $187 million. Management says they have an order backlog of $1.1 billion, including $400 million in recent bookings, that is, those orders that came in early 2026. NASA is moving toward a steady access to space flights and deliveries, too, which bodes well for the company's longer-term sales. Revenue for fiscal 2026 is expected to more than quadruple to $952 million, with a narrower net loss of $66 million. Analysts expect the business to turn a profit for the first time in 2028.
Boeing is still working to recover from safety and supply chain issues. While revenue will rise about 9% to around $98 billion this year, the company's net income will fall dramatically to about $85 million, according to consensus Wall Street analyst forecasts, hence its very high forward P/E ratio.
But Boeing is among the largest aerospace and defense companies around, giving it excellent long-term prospects due to its leading position in the growing commercial aerospace industry. In the first quarter of its current fiscal year, the order backlog rose in the double digits, setting a new record. Backlogs mean future sales are strong and show the industry believes in the business.
Boeing's key role in the U.S. aerospace industry sets it aapart when choosing between these two stocks. Its more reasonable multiples, as detailed above, give added creedence to Boeing being the wise choice in 2026.
Key Takeaways Boeing's BDS revenues rose 13% in Q2 2026, while backlog reached $85 billion.Boeing faces order cancellations, slow production and a 777X program running seven years late.Boeing trades at a 1.55X forward P/S, below the aerospace-defense industry's 2.36X average. The Boeing Company’s (BA - Free Report) shares have lost 3.2% over the past three months compared with the Zacks Aerospace-Defense industry’s decline of 3.8%. Boeing remains one of the largest U.S. commercial aircraft manufacturers. Steadily growing commercial air travel should boost Boeing’s service business unit. The outlook for Boeing’s defense and space business segment also remains optimistic.
Image Source: Zacks Investment Research
Shares of other defense stocks, such as Northrop Grumman (NOC - Free Report) and Lockheed Martin (LMT - Free Report) , have shown mixed performance over the same time frame. Shares of Northrop Grumman have lost 3.1% while those of Lockheed Martin have risen 2.7%. Northrop Grumman benefits from a record backlog, rising defense spending and expanding demand for strategic deterrence, missile defense, space and advanced aircraft. Lockheed Martin’s record backlog, expanding munitions capacity and alignment with U.S. and allied defense priorities support durable growth.
Considering Boeing’s current price decline, investors may be wondering whether now is a good time to add the stock to their portfolios. Let’s examine the factors and assess the company’s investment prospects to make a more informed decision.
Factors Acting in Favor of BA StockThe outlook for the aerospace giant’s defense and space business also remains encouraging, as Boeing is one of the largest defense contractors globally and a prominent integrator for the International Space Station.
Thanks to its diverse defense product portfolio and established footprint in the space technology industry, Boeing witnesses a solid inflow of contracts. In the second quarter of 2026, Boeing’s Defense, Space & Security (“BDS”) revenues increased 13% year over year to $7.48 billion, driven by higher volumes across classified programs, missiles and weapons, and KC-46A activity. The segment booked $7 billion of orders and ended the quarter with an $85 billion backlog, with 27% tied to customers outside the United States.
Recently, Boeing completed the sale of its 50% stake in HRL Laboratories (which was a 50/50 joint venture between Boeing and GM) to IBM. The completion benefits Boeing by allowing the company to focus capital and management resources on its core aerospace, defense and space businesses, rather than allocating resources to an advanced-technology joint venture outside its primary operations.
Boeing’s new seven-year framework agreements for the Standard Missile-3 (SM-3) provide a positive growth opportunity for the BDS segment by giving the company greater visibility into long-term demand for critical missile-defense components. Under the agreements, Boeing will increase production of avionics and ejector assemblies used in the SM-3 Block IB and IIA interceptors, which are key part of U.S. and allied sea-based missile defense.
Key Headwinds Facing BA StockThe order book is growing, but slow production, delayed deliveries and ongoing inspections could be turning customers away from Boeing’s commercial airplanes, leading to recent order cancellations. Aircraft order cancellations during the six months ended June 30, 2026, totaled $2.78 billion and were primarily related to 737 aircraft. The 777X program has suffered repeated postponements and significant cost overruns.
The Boeing 777X program is running seven years late, with an expected entry-into-service date in 2027. These delays, caused by rigorous FAA scrutiny, design changes and part cracks, have resulted in significant cost overruns. The ongoing trade tensions between the United States and China pose another challenge. Any escalation in trade disputes could delay these deliveries, hurting revenues and increasing inventory costs.
Estimates for BA StockThe Zacks Consensus Estimate for Boeing’s 2026 earnings per share (EPS) indicates a year-over-year improvement of 91.82%.
Image Source: Zacks Investment Research
The consensus estimate for Northrop Grumman’s 2026 EPS calls for year-over-year growth of 9.45%. The Zacks Consensus Estimate for Lockheed Martin’s 2026 EPS implies a year-over-year rise of 31.44%.
BA’s Earnings Surprise HistoryThe company beat on earnings in one of the trailing four quarters and missed in the other three, delivering an average negative surprise of 113.46%.
Image Source: Zacks Investment Research
BA Stock’s LiquidityThe company’s current ratio is 1.14 compared with the industry’s average of 1.10. A ratio of more than one suggests a healthy liquidity position, where the business can meet its immediate financial obligations without selling long-term assets.
Image Source: Zacks Investment Research
BA Stock Trades at a DiscountIn terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.55X, a discount to the industry’s average of 2.36X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.
Image Source: Zacks Investment Research
What Should Be the Next Move?Boeing’s BDS business remains well positioned for growth, supported by a diversified defense portfolio, strong contract activity and an established presence in space technology. Recent strategic actions further strengthen its focus on core defense programs and provide greater long-term revenue visibility.
Considering current execution challenges, new investors should wait and look for a better entry point. Investors who already own this Zacks Rank #3 (Hold) stock may consider retaining it, given the company’s strong earnings growth and solid liquidity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Before Boeing Co‘s (NYSE:BA) chart deteriorated into a Death Cross, billionaire investors David Tepper and Paul Tudor Jones had already initiated new positions in the aerospace giant, suggesting they may be looking beyond today’s turbulence toward a longer-term recovery.
Manufacturing flaws and regulatory scrutiny have kept Boeing stock down nearly 12% over the last 12 months. But the latest 13F filings, reflecting institutional holdings as of June 30, revealed new positions from Appaloosa Management‘s David Tepper and Tudor Investment’s Paul Tudor Jones—an intriguing vote of confidence at a time when investor sentiment remains fragile.
The 13F filings offer only a quarter-end snapshot of institutional holdings as of June 30, meaning Tepper and Tudor may have since added to, trimmed, or exited their Boeing stakes.
Why Billionaires Still See ValueThe bullish case for Boeing doesn’t hinge on a single catalyst. Instead, it rests on whether the company can gradually stabilize its commercial aircraft business while benefiting from a ballooning U.S. military budget, poised to reach an unprecedented $1.5 trillion for fiscal year 2027.
Last month, Boeing received an indefinite-delivery, indefinite-quantity contract with a ceiling value of $131.2 billion to support the U.S. Air Force’s F-15 Eagle program through 2037. The agreement covers aircraft production, modernization, and sustainment for U.S. and international customers, reinforcing the long-term visibility of Boeing’s defense business.
The contract’s ceiling value represents the maximum amount that could be ordered over time—not an immediate $131 billion award.
Yes, But…Boeing continues to work through legacy challenges. The Arlington, Virginia-based company recently settled a $3.1 million FAA civil penalty tied to manufacturing quality violations, while the integration of Spirit AeroSystems has added unexpected liabilities and weighed on its financial results.
For long-term investors, the question is whether these headwinds are temporary execution issues—or signs of deeper structural problems.
Chart created using Benzinga Pro
Technically, Boeing’s stock has already formed a death cross, with its 50-day moving average at $219.52 falling below its 200-day moving average at $220.09—a signal many traders associate with weakening long-term momentum.
The stock has struggled to gain traction despite periodic rallies and remains below key moving averages. Momentum indicators also remain subdued, with the Relative Strength Index hovering below the neutral 50 level, suggesting buyers have yet to regain control. While technical signals don’t predict future returns, they illustrate the market’s cautious stance toward Boeing’s turnaround.
That makes the contrast notable: even as the chart has deteriorated, Tepper and Tudor were willing to establish positions rather than wait for clearer signs of recovery.
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Boeing Investors are Betting On ExecutionBoeing’s defense business is securing sizable long-term contracts, but investors are still waiting for sustained evidence that the commercial aviation business can deliver consistent production, stronger margins and fewer operational surprises.
That’s likely what makes Boeing such a divisive stock. The chart reflects skepticism, while some of Wall Street’s best-known investors appear willing to look through the near-term noise.
Boeing paid a $3.1 million fine to the U.S. Federal Aviation Administration this year, after the agency said the planemaker had committed a series of safety violations, including actions tied to the 2024 Alaska Airlines MAX 9 mid-air emergency, the FAA told Reuters Wednesday.
The FAA said the full amount sought in September 2025 was paid by Boeing in January and had not been previously disclosed publicly. Boeing also confirmed to Reuters it paid the fine.
The FAA also said last year it was fining Boeing for interfering with safety officials’ independence and said the planemaker presented for agency approval two aircraft that were not airworthy.
In 2024, the FAA said it found hundreds of quality system violations at the planemaker's 737 factory in Renton, Washington, and the 737 fuselage factory of then Boeing subcontractor Spirit AeroSystems in Wichita, Kansas, from September 2023 through February 2024.
The FAA found that a Boeing employee pressured a co-worker who was performing tasks on behalf of the FAA to sign off on a 737 MAX so the company could meet its delivery schedule, even though the co-worker had determined that the aircraft did not comply with regulatory standards.
Democratic U.S. Senator Richard Blumenthal previously called the FAA fine inadequate, adding, "For Boeing, such fines are easily absorbed as the cost of doing business, not a meaningful deterrent to dangerous behavior."
Blumenthal previously investigated Boeing safety issues and chaired a committee when it probed the Alaska mid-air cabin blowout incident. The panel released a report showing Boeing whistleblowers raised significant concerns about the company's manufacturing processes.
The Alaska Airlines incident, which involved a 737 MAX found missing four key bolts, badly damaged Boeing's reputation and led to a brief grounding of the MAX 9 and an FAA monthly production cap of 38 planes that was lifted in October 2025.
The FAA in July said it would allow Boeing to issue airworthiness certificates for all 737 MAX and 787 airplanes after "months of thorough data and safety review demonstrating consistent production quality."
Ethiopian Airlines is nearing a deal to buy up to 10 long-haul Boeing (BA.N) freighters as plans edge forward for a new African hub to compete with Gulf carriers, two industry sources said.
The deal is likely to include two of Boeing's current-generation 777F aircraft, helping the U.S. planemaker bridge a gap to the delayed new 777-8F freighter model, which is expected to make up the rest of the order, the sources said.
One source said the order would involve eight to 10 aircraft, barring last-minute adjustments. Boeing said it would not comment on speculation. Ethiopian Airlines had no immediate comment.
Under international emissions rules, Boeing is due to stop making the widely used 777F at the end of 2027, closing a lucrative chapter following sales of more than 400 units.
But delays in developing the successor to the 777 jet family, the 777X — which includes the new 777-8F cargo model — have put pressure on Boeing to keep making the current 777F for a while to prevent its supply chains from going cold.
In December, Boeing asked the Federal Aviation Administration for a waiver allowing it to deliver another 35 777F freighters, citing strong demand and a delay in 777X certification. The FAA said on Tuesday the waiver request remained pending and that no decision had been made.
Boeing said its request would allow it to continue meeting some demand until the new 777-8F entered service.
It was not immediately clear whether the 777Fs involved in the Ethiopian deal were destined to be delivered before or after the deadline, but one industry source said Boeing was confident of winning approval for the exemption.
Boeing is building two 777F freighters a month, according to a recent FAA filing.
ARLINGTON, Va., Sept. 2, 2026 /PRNewswire/ -- Boeing [NYSE: BA] President and Chief Executive Officer Kelly Ortberg will speak at the Morgan Stanley Laguna Conference on September 16 at 11:30 a.m. PT.
The event webcast, as well as a subsequent transcript, can be accessed on the Events and Presentations section of www.boeing.com/investors. Participants are encouraged to verify access to the webcast prior to the start of the event.
Key Takeaways Boeing's BDS revenues rose 13% to $7.5 billion as higher volume drove growth across its portfolio.Boeing's $85 billion defense backlog spans aircraft, weapons, space and communications programs.MQ-25A and T-7A reached Milestone C, clearing both programs for low-rate initial production. The Boeing Company (BA - Free Report) is best known for its commercial aircraft business, but its Defense, Space & Security (“BDS”) segment could become an increasingly important contributor to future growth. In the second quarter of 2026, BDS revenues increased 13% year over year to $7.5 billion, driven by higher volume across the portfolio.
A key advantage for Boeing is the size of its defense backlog. BDS ended the second quarter with approximately $85 billion of backlog. Importantly, 27% of this backlog represents orders from customers outside the United States, providing Boeing with exposure to international defense demand. The backlog spans aircraft, weapons, space and communications programs, giving the segment a diversified pipeline of contracted work that supports revenue visibility for several years.
Several major programs are also moving from development toward production. During the quarter, Boeing's MQ-25A Stingray completed its first flight and received Milestone C, clearing the program to enter low-rate initial production. The U.S. Air Force's T-7A Red Hawk also achieved Milestone C and began low-rate initial production.
Boeing is also benefiting from demand across other areas of the defense market. Earlier in 2026, the company signed a seven-year framework agreement to expand PAC-3 Seeker production and announced a strategic partnership with Rheinmetall to offer the MQ-28 Ghost Bat to Germany. The company also continues to see opportunities in secure communications and space, highlighted by a U.S. Space Force award for proprietary communications capabilities in the second quarter. These programs position BDS across several areas of modern defense spending rather than relying on a single aircraft platform.
Companies Benefiting From the TrendThe broader increase in defense spending is creating opportunities across aerospace and defense. General Dynamics (GD - Free Report) is positioned to benefit from elevated defense spending through its submarines, armored vehicles and munitions businesses, supported by strong demand from the U.S. and international customers. RTX Corporation (RTX - Free Report) could benefit from rising demand for missiles, air-defense systems, sensors and other advanced defense technologies as governments prioritize modernizing military capabilities.
BA Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 91.82% and 552.32%, respectively.
Image Source: Zacks Investment Research
BA Stock Trades at a DiscountIn terms of valuation, BA’s forward 12-month price-to-sales (P/S) is 1.53X, a discount to the industry’s average of 2.45X.
Image Source: Zacks Investment Research
BA Stock’s Price PerformanceIn the past six months, the company’s shares have lost 9.6% compared with the industry’s 15.4% decline.
Image Source: Zacks Investment Research
BA’s Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On CNBC’s “Mad Money Lightning Round,” Jim Cramer said Applied Aerospace & Defense, Inc. (NYSE:AADX) is losing money.
Applied Aerospace & Defense, on Aug. 12, posted a loss of $1.04 per share for the second quarter, hurt by increased expenses.
Cramer said Teradyne, Inc. (NASDAQ:TER) is right here as it has cooled off. “It’s got a great business, unassailable business, not a monopoly, but close to it,” he noted.
Baird analyst Quinn Fredrickson downgraded Teradyne from Outperform to Neutral on Aug. 21 and maintained the price target at $420.
The Boeing Company (NYSE:BA) goes down when crude oil goes higher, Cramer said. “We need to be on the sidelines until it breaks $200, which it might because it is so despised,” he added.
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Argus Research analyst Kristina Ruggeri upgraded Boeing from Hold to Buy on Aug. 11 and set a $265 price target.
On the earnings front, Boeing posted an adjusted loss of 76 cents per share for the second quarter on July 28, wider than the 30-cent loss estimate, while revenue rose 8% year over year to $24.56 billion, beating the $24.245 billion estimate.
Price Action Teradyne shares fell 1.5% to settle at $349.83 on Monday. Boeing shares declined 1% to close at $207.78 during the session. Applied Aerospace & Defense fell 0.8% to settle at $13.20 on Monday. Read Next
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Slowly but surely, Boeing (BA -0.97%) is increasing production after gaining regulatory approvals.
*Stock prices used were the afternoon prices of Aug. 27, 2026. The video was published on Aug.29, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Negotiators from Boeing (BA.N) and the union representing engineers and technical workers in Washington and other states will resume contract talks on September 8, the union announced on Monday.
Talks ended after members of the Society of Professional Engineering Employees in Aerospace overwhelmingly rejected Boeing's four-year contract offer on August 21.
The two sides met on Monday to discuss resuming negotiations.
SPEEA members said in an internal survey that their top priority is getting higher general wage increases from Boeing in the next offer.
"We look forward to taking in SPEEA’s feedback and reaching a resolution that works for our employees and keeps our company and team competitive for years to come," a Boeing spokesperson said.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Civilian airplane builder Boeing's (BA -0.03%) on-again, off-again defense business is on once again raking in big contracts -- and earning money on them.
As recently as 2024, Boeing was in the dumps. Boeing reported $12 billion in losses that year, with both its civilian commercial airplanes division and its military-focused defense, space, and security (BDS) unit deeply in the red. The company burned through more than $14 billion in negative free cash flow.
But what a difference a year makes -- and what a bigger difference two years can make!
According to data from S&P Global Market Intelligence, Boeing's losses in commercial airplanes were still above $7 billion last year -- but BDS was close to breakeven. So far in 2026, the plane maker is doing even better. Commercial losses continue to shrink, and BDS is finally back in the black with a $218 million operating profit.
And there may be more where that came from.
Image source: Getty Images.
Boeing's winning contracts again Boeing pulled a rabbit out of its flight helmet last year when it beat Lockheed Martin for the right to build a new sixth-generation fighter jet for the U.S. Air Force.
Dubbed the F-47 Next Generation Air Dominance fighter, the new airplane will mark a huge upgrade from the Air Force's current top-of-the-line air superiority fighter, the F-22. While details are scarce at this early date, reports indicate that when the F-47 arrives in 2028 (and enters service in the early 2030s), it will bring to the fight advanced stealth and electronic warfare capabilities, the ability to control autonomous drones in combat, and a range nearly twice that of the F-22 -- 1,000 miles.
More importantly for Boeing, the F-47 will bring the company an estimated $20 billion to $50 billion in revenue to first develop the aircraft and then build 185 of them.
This development revenue, which is already rolling in, is presumably already contributing to the turnaround at BDS. It may pale in significance to the company's latest defense win, however. This week, you see, Boeing was awarded an even bigger contract: $131.2 billion.
Announced on Monday, Aug. 24 in the Defense Department's daily digest of contract awards, the new "F-15 Eagle Crest" contract requires Boeing to perform "aircraft production, systems integration, modernization, upgrades, retrofits, sustainment, and the establishment of organic depot maintenance capabilities" across the Air Force's F-15 fleet -- and the air forces of Japan, Indonesia, Israel, Poland, Saudi Arabia, Singapore, and South Korea.
According to data from Flightglobal's 2026 World Air Forces report, the modernizations and upgrades alone could cover a global fleet of at least 897 F-15s -- or more than 1,000 if one counts airplanes ordered but not yet delivered.
It's worth pointing out that not all of the $131.2 billion in the contract may be spent. This figure represents an upper limit on the potential size of the deal and covers work to be performed under an umbrella contract. The final size of the contract will depend on how many task orders to perform work (build and deliver new airplanes, modernize and upgrade, and supply existing aircraft) are placed by the Air Force and the allied nations.
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What it means for Boeing investors But yes, $131.2 billion is a possibility.
Even stretching over a decade (all work is expected to be completed by August 2037), that's a lot of extra money Boeing could make off of F-15 Eagle Crest -- more than $13 billion per year, or enough to add 50% to the company's $27 billion-a-year BDS business.
So this is big news. Is it big enough, though, to make Boeing stock a buy?
That's hard to say for a company like Boeing, still working its way through a near-decade-long turnaround that began when the company started losing money in 2019 -- and continues to this day. Even though Boeing technically returned to profitability last year, its current $166.8 billion market capitalization values the stock at a nosebleed 76 times trailing earnings.
Expect that valuation to drop dramatically, however, as earnings begin growing off their currently low base. And the sooner Boeing starts ramping up earnings at its now-profitable-again defense business, the cheaper Boeing stock is going to look.
Boeing (BA -0.03%) is finally building 737s at a pace it has not achieved in years. The program began transitioning to a production rate of 47 aircraft per month in the second quarter, according to the company's July earnings release, and Boeing initiated initial production on a new 737 line in July. For an aerospace giant that spent early 2024 limited to 38 per month by regulators, this production ramp is notable.
But now there's something that could get in the way. On Aug. 21, the two SPEEA units representing Boeing's approximately 17,000 engineers and technical workers rejected the company's contract offers and authorized a strike by overwhelming margins. The current contracts expire at midnight on Oct. 6.
Image source: Boeing.
A faster 737 line, at lastBoeing delivered 171 commercial aircraft in the second quarter -- a 14% increase from the 150 a year earlier. And revenue rose 8% year over year to $24.6 billion.
Free cash flow (non-GAAP), meanwhile, swung to a positive $631 million from an outflow of $200 million in the same quarter a year earlier.
Of course, Boeing still does not generate positive net income. Its non-GAAP (adjusted) core loss of $0.76 per share narrowed from a loss of $1.24 a year earlier.
The balance sheet also still holds $45.9 billion in consolidated debt -- more than double the $20 billion in cash and marketable securities on hand.
Further, Boeing's order backlog hit a record $715 billion in the quarter, including over 6,200 commercial aircraft. Demand, therefore, is not the constraint. Building and delivering fast enough is. The Federal Aviation Administration limited 737 production to 38 per month in January 2024 following the door plug accident on a nearly new MAX 9. It raised the limit to 42 last October, approved the move to 47 this past spring, and Boeing began the ramp-up to that pace in the second quarter.
So what would a strike actually halt?SPEEA members do not assemble aircraft (Boeing's factory workforce belongs to a different union). The people who just voted are engineers and technical workers, and their vote was overwhelming.
The professional unit rejected the offer with around 64% voting against it, and the technical unit with around 72%. The two units authorized a strike with approximately 88% and 90% support, according to results published by SPEEA.
But their work underpins everything the production increase needs. Engineering supports production, deliveries, and the certification work Boeing expects to finish this year. On that last front, the FAA certified the smallest MAX variant, the 737-7, on Aug. 3 -- and Boeing says the larger 737-10 is next.
And Boeing is taking the risk seriously.
"We are now implementing our strike contingency plan and diverting the dollars we had wanted to invest in our SPEEA-represented team to prepare for a potential strike," said Ben Nimmergut, Boeing's vice president and functional chief engineer for production engineering, following the vote.
However, there is a new reason for optimism. Leeham News reported on Thursday that SPEEA and Boeing will meet on Monday to restart talks, after the union spent the week surveying its members on what a better offer needs. Still, not all signs point in that direction: Boeing has posted job openings for replacement engineers and technicians, according to the same outlet.
A deadline, not a strikeNo strike can occur while the current contracts remain in effect, and they expire at midnight on Oct. 6. That leaves more than five weeks, and both sides say they want a deal.
But the recent precedent is uncomfortable. In 2024, more than 32,000 Boeing machinists went on strike in September after rejecting a tentative agreement, and the strike lasted more than seven weeks before a much richer contract ended it.
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And SPEEA's rejection followed a similar path. The union's negotiating teams recommended the contracts, but their bargaining unit councils had already declined to endorse them -- and members then voted against the agreements by wide margins, citing deep distrust of Boeing's leadership.
Notably, an engineers' strike would not likely directly halt the assembly lines as the machinists' strike did. But I'd say investors shouldn't find much comfort in that. A walkout would stall the engineering support the production ramp-up depends on, and likely the 737-10 certification work still outstanding, exactly when Boeing is trying to prove it can sustain a pace of 47 per month.
As for the stock, it trades at about $210 as of this writing -- around 17% below its 52-week high of $254.35 -- and has trended lower over the two weeks surrounding the vote. Even after the drop, the shares trade at about 1.74 times sales.
At that valuation, the recovery arguably has to stay on schedule. And the next five weeks at the negotiating table will decide whether it does. Until Oct. 6, the delivery increase and contract talks are the same story.
Archer Aviation (ACHR) is evolving from a pure eVTOL play into a diversified aerospace, defense, and AI platform, reducing single-point-of-failure risk. ACHR's near-term value is anchored by defense exposure and Insitu's profitable $200M+ revenue base, with AI/software and air taxi as mid- and long-term drivers. The Boeing transaction transforms ACHR into a vertically integrated platform, adding autonomy, UAS, and airspace management, and aligning incentives via equity and board involvement.
Boeing (BA -0.03%) recently announced a spate of major developments. However, one particular development taking shape this month likely caught the attention of a wide swath of investors.
On Aug. 10, Boeing announced plans to sell three of its aerospace and electric vertical takeoff and landing (eVTOL) businesses to Archer Aviation (ACHR -3.04%), one of the most followed eVTOL stocks.
Yet while this transaction has significant implications, the question is whether it meaningfully changes the story for Boeing shares.
Image source: Getty Images.
Archer deal turns divestitures into an opportunity Numerous strategic and/or private buyers would likely have paid cash for eVTOL builder Wisk, drone maker Insitu, and air-traffic software company SkyGrid. However, by merging them into Archer, the company is turning what would be a series of routine divestitures into an opportunity.
Per the terms of its deal with Archer Aviation, in exchange for the three businesses, plus an agreement to make a $55 million equity investment in Archer, Boeing will receive a combination of newly issued shares and warrants in the eVTOL company.
Assuming the deal obtains regulatory approval and closes later this year, Boeing will own nearly 20% of Archer. This leaves the aerospace giant well-positioned to benefit from the start-up's further commercialization. That's not all. At the same time, Boeing retains the right to use Wisk's autonomous flight technology for its commercial and defense aircraft products.
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What this means for Boeing stock While the Archer deal could eventually produce billions of dollars in value for Boeing, for a megacap company with a $170 billion market cap, that's arguably a drop in the bucket. Still, by handing these businesses off to one of the emerging leaders in the eVTOL space, Boeing's management removes one more potential distraction from its plate.
The company remains hard at work getting its commercial aircraft business back on track. It recently made major progress in this area, as its 737 MAX 7 just received Federal Aviation Administration (FAA) approval. Divesting this business also provides management with more bandwidth to further grow and improve the company's defense aircraft business. Yet while all of this bodes well for Boeing's return to steady profitability and prior levels of cash flow, there's just one problem.
The upside from a turnaround appears well established in its stock price. Boeing trades for around 77 times trailing-12-month (TTM) earnings. That's a massive premium even to other high-flying aerospace stocks like GE Aerospace, which trades for around 40 times earnings. Management may anticipate a path toward $10 billion in annual free cash flow, but that's still below Boeing's $14 billion in free cash flow during 2018, prior to the company's fiscal performance tanking due to the 737 MAX grounding and COVID-era drop in aerospace demand.
While this transaction could incrementally improve Boeing's turnaround and provide a potential multibillion-dollar windfall, it's going to take a big pullback or a clearer picture of future profitability before this stock is in the long-term "buy zone" once again.
WASHINGTON--(BUSINESS WIRE)--The Foundation for Aviation Safety has issued a stark warning regarding Boeing's ongoing commercial aircraft operations, citing a cumulative crisis in engineering design, manufacturing defects, and systemic quality control failures. Despite Boeing's strong 2025 financial recovery—delivering 600 aircraft and securing 1,173 net orders to outsell Airbus for the first time since 2018—a deep disconnect remains between corporate reassurances and reality. Airworthiness dir.
Boeing (BA.N) posted contractor positions for engineering and technical roles on job sites on Tuesday, in what appears to be the latest escalation in its labor dispute with its white-collar union at its commercial airplane division.
After members of the Society of Professional Engineering Employees in Aerospace overwhelmingly rejected Boeing's contract offer on Friday, the company said it would begin implementing a contingency plan in case of a strike after the current contract ends on October 6.
A strike by SPEEA's 17,000 members could further delay certification of Boeing's 737 MAX 10 and 777-9, both of which are already years behind schedule.
The certification delays have kept two of Boeing's most important new commercial jets from entering airline service, and a work stoppage by the engineers and technical workers responsible for that effort would be a blow to a company still recovering from quality and safety problems that followed a mid-air accident on a nearly new 737 MAX in January 2024.
SPEEA is "hopeful" that the planemaker and its members can agree to a new four-year contract while avoiding a strike, union spokesman Bryan Corliss said.
"It appears, however, that both sides are preparing for the possibility of a strike," he said. "In our case, that includes preparing information for our members on what they could expect should there be a work stoppage. For its part, Boeing seems to be looking for 17,000 individuals who don't care if they undercut worker solidarity."
Boeing declined to comment on the contract job postings.
"We want to reach an agreement before the current contract expires and look forward to finding a solution with SPEEA at the table. To protect business continuity and support our customers, we’re implementing our contingency planning which will leverage a wide range of qualified resources with a continued emphasis on safety and quality," a company spokesperson told Reuters.
Boeing's last two major union contract negotiations ended in extended strikes — a seven-week walkout by roughly 33,000 members of the International Association of Machinists and Aerospace Workers (IAM) at Boeing's commercial airplanes division in 2024 and a 101-day strike by about 3,200 IAM members at Boeing's defense division in 2025.
Bringing in thousands of contractors could set back progress Boeing has made addressing widespread quality and safety problems in its commercial aircraft production programs after the 737 MAX accident, Corliss said.
Ausdal Financial Partners Inc. bought a new position in shares of The Boeing Company (NYSE:BA – Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 14,464 shares of the aircraft producer’s stock, valued at approximately $3,131,000.
Several other institutional investors and hedge funds have also made changes to their positions in the company. XML Financial LLC grew its position in shares of Boeing by 0.5% during the fourth quarter. XML Financial LLC now owns 8,905 shares of the aircraft producer’s stock worth $1,933,000 after acquiring an additional 43 shares during the last quarter. North Star Investment Management Corp. boosted its stake in Boeing by 1.6% during the 4th quarter. North Star Investment Management Corp. now owns 2,833 shares of the aircraft producer’s stock worth $615,000 after purchasing an additional 44 shares during the period. Strait & Sound Wealth Management LLC grew its position in Boeing by 1.1% during the 4th quarter. Strait & Sound Wealth Management LLC now owns 3,915 shares of the aircraft producer’s stock worth $850,000 after purchasing an additional 44 shares during the last quarter. B.O.S.S. Retirement Advisors LLC increased its stake in Boeing by 1.4% in the first quarter. B.O.S.S. Retirement Advisors LLC now owns 3,175 shares of the aircraft producer’s stock valued at $632,000 after purchasing an additional 44 shares during the period. Finally, PKS Advisory Services LLC raised its holdings in shares of Boeing by 2.5% in the fourth quarter. PKS Advisory Services LLC now owns 1,839 shares of the aircraft producer’s stock valued at $399,000 after buying an additional 45 shares during the last quarter. 64.82% of the stock is owned by hedge funds and other institutional investors.
Boeing Stock Performance NYSE BA opened at $212.48 on Thursday. The stock has a market capitalization of $167.94 billion, a price-to-earnings ratio of 91.98 and a beta of 1.21. The business’s 50 day moving average is $221.15 and its two-hundred day moving average is $221.68. The Boeing Company has a 12-month low of $176.77 and a 12-month high of $254.35. The company has a current ratio of 1.14, a quick ratio of 0.33 and a debt-to-equity ratio of 6.77.
Boeing (NYSE:BA – Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) EPS for the quarter, missing the consensus estimate of ($0.34) by ($0.42). Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. The business had revenue of $24.56 billion during the quarter, compared to analyst estimates of $24.26 billion. During the same period in the prior year, the business earned ($1.24) earnings per share. The firm’s quarterly revenue was up 8.0% compared to the same quarter last year. Research analysts expect that The Boeing Company will post -0.87 EPS for the current year. Analysts Set New Price Targets A number of equities analysts recently issued reports on the company. Weiss Ratings reissued a “sell (d+)” rating on shares of Boeing in a report on Tuesday, July 21st. UBS Group started coverage on Boeing in a research report on Tuesday, August 11th. They set a “buy” rating for the company. Cantor Fitzgerald downgraded Boeing to a “neutral” rating in a research note on Tuesday, August 11th. Citigroup lowered Boeing from a “buy” rating to a “sell” rating in a report on Tuesday, August 11th. Finally, BNP Paribas Exane upgraded Boeing from an “underperform” rating to an “outperform” rating and upped their price target for the stock from $230.00 to $300.00 in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $272.58.
Check Out Our Latest Report on Boeing
Key Headlines Impacting Boeing Here are the key news stories impacting Boeing this week:
Positive Sentiment: Bernstein initiated or reiterated a Buy view on Boeing, providing support for the stock despite recent operational concerns. Boeing Gets a Buy from Bernstein Positive Sentiment: Boeing and RTX won approximately $766 million in U.S. Air Force contracts tied to B-52 modernization. The award reinforces Boeing’s defense exposure and provides incremental backlog and revenue visibility. Boeing and RTX Win B-52 Modernization Contracts Positive Sentiment: The market continues to focus on Boeing’s potential $131.23 billion F-15 Eagle contract ceiling, which could support defense revenue through 2037 and include modernization, sustainment, and foreign military sales. However, the indefinite-delivery/indefinite-quantity award is a maximum authorization—not guaranteed revenue—and only about $344,000 was initially funded. F-15 Eagle Contract Announcement Positive Sentiment: Some valuation analysis argues Boeing may be undervalued after a roughly 10% annual decline, citing long-term defense contracts and technology partnerships as potential cash-flow catalysts. Execution remains the key risk. Boeing Stock Could Be Undervalued About Boeing (Free Report)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
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In 2005, Boeing (BA -0.03%) sold its commercial airplane operations in Kansas and Oklahoma to the investment firm Onex for about $900 million in cash. The business became Spirit AeroSystems, the world's largest independent supplier of aircraft structures -- including the fuselage of the 737.
In December, Boeing paid $4.7 billion in stock to take it back. Counting Spirit's debt, the deal was valued at about $8.3 billion.
That history is worth holding onto, because Boeing is selling again. On Aug. 10, the aerospace giant agreed to sell three of its future-flight businesses (Wisk Aero, Insitu, and SkyGrid) to Archer Aviation (ACHR -3.04%).
Is Boeing letting go of something it will eventually have to buy back?
Image source: Boeing.
The Spirit lessonThe Wichita plant Boeing sold kept building 737 fuselages, now as a supplier, shipping them by rail to Boeing's factory in Renton, Washington. For years, that looked like ordinary industry practice: aerostructures were something an airplane maker could buy rather than own.
But Spirit's problems became Boeing's problems, because the fuselages were Boeing's product no matter whose name was on the plant. Boeing framed the repurchase as a commitment to aviation safety and a way to improve quality in its commercial airplane business. The company agreed in July 2024 to bring Spirit back inside, and the deal closed on Dec. 8, 2025.
"This is a pivotal moment in Boeing's history and future success," CEO Kelly Ortberg said in the company's press release on the closing.
The purpose was control. And a business sold for about $900 million came back at $4.7 billion, plus assumed debt, two decades later -- after the quality problems had already done their damage.
This time, Boeing kept the technologyI'd argue the Archer deal is built differently, and deliberately so.
Archer is acquiring Wisk Aero, Boeing's autonomous air-taxi unit with more than 1,700 test flights behind it, along with Insitu, a maker of unmanned aircraft with operations in 35 countries, and SkyGrid, an air-traffic-management software company. Archer has pitched the combination as bringing artificial intelligence (AI) into aerospace and defense hardware.
Of course, Boeing isn't simply exiting. It is taking a stake in Archer, and the two companies agreed to a technology-sharing arrangement that preserves Boeing's access to Wisk's autonomous-flight technology for future commercial and defense aircraft. The deal is expected to close by the end of 2026, pending antitrust review.
In 2005, Boeing sold a piece of its own product and kept a supply contract. This time it is selling businesses that don't build any part of a Boeing airplane, and keeping both an ownership interest and rights to the technology it might need later.
The sale fits a pattern. Late last year, the company also closed the sale of its Jeppesen and ForeFlight software businesses to Thoma Bravo, an all-cash deal valued at $10.55 billion. Boeing is sorting what it must own from what it only needs access to.
A $715 billion reason to focusThe selling has a clear reason: the core business finally has momentum worth funding, and it still carries the debt of the bad years.
The quarter backs that up. Revenue rose 8% year over year to $24.6 billion in the second quarter, on 171 commercial deliveries, up 14% from 150 a year earlier.
The same goes for cash. Free cash flow came in at $631 million, compared with an outflow of $200 million in the year-ago quarter, and the first half's $823 million outflow was a big improvement from the $2.5 billion that went out in the first half of 2025.
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To be fair, the company is still losing money. On a core, non-GAAP (adjusted) basis, the loss came to $0.76 per share, narrowed from $1.24 a year earlier.
And the backlog says demand isn't the constraint. Boeing ended the quarter with a record $715 billion backlog, including more than 6,200 commercial airplanes. Building them fast enough is the constraint, with $45.9 billion of consolidated debt sitting against $20 billion of cash and investments. Air taxis and drones, however promising, compete for capital with that job.
So, is Boeing repeating its 2005 mistake? I don't think so. The Spirit lesson was about control of Boeing's own product, and nothing in the Archer package touches a Boeing airplane today.
The longer-term risk is different. If autonomous flight becomes central to aerospace someday, a stake and shared rights to technology are not the same as owning the business. Sure, that could make this deal look bad in a decade. But Boeing already paid $4.7 billion to learn what it has to keep inside. At about $211 as of this writing, roughly 17% below its 52-week high, the stock's valuation is arguably a bet on the recovery of the core business. Selling what sits outside that core is consistent with the bet.
Avala Global LP acquired a new stake in shares of The Boeing Company (NYSE:BA – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm acquired 203,543 shares of the aircraft producer’s stock, valued at approximately $44,061,000. Boeing makes up 1.6% of Avala Global LP’s portfolio, making the stock its 24th biggest position.
A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Princeton Capital Management LLC lifted its position in shares of Boeing by 78.3% during the 4th quarter. Princeton Capital Management LLC now owns 12,249 shares of the aircraft producer’s stock valued at $2,660,000 after buying an additional 5,381 shares in the last quarter. Rakuten Investment Management Inc. grew its stake in shares of Boeing by 502.3% during the 4th quarter. Rakuten Investment Management Inc. now owns 103,099 shares of the aircraft producer’s stock valued at $22,398,000 after acquiring an additional 85,982 shares during the period. Louisiana State Employees Retirement System purchased a new stake in Boeing in the 1st quarter worth approximately $7,961,000. Patriot Financial Group Insurance Agency LLC increased its holdings in Boeing by 103.8% in the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 11,240 shares of the aircraft producer’s stock worth $2,237,000 after acquiring an additional 5,726 shares in the last quarter. Finally, Deutsche Bank AG raised its stake in Boeing by 47.5% during the 4th quarter. Deutsche Bank AG now owns 2,376,243 shares of the aircraft producer’s stock worth $515,930,000 after acquiring an additional 765,197 shares during the period. Institutional investors own 64.82% of the company’s stock.
Boeing News Summary Here are the key news stories impacting Boeing this week:
Positive Sentiment: Bernstein initiated or reiterated a Buy view on Boeing, providing support for the stock despite recent operational concerns. Boeing Gets a Buy from Bernstein Positive Sentiment: Boeing and RTX won approximately $766 million in U.S. Air Force contracts tied to B-52 modernization. The award reinforces Boeing’s defense exposure and provides incremental backlog and revenue visibility. Boeing and RTX Win B-52 Modernization Contracts Positive Sentiment: The market continues to focus on Boeing’s potential $131.23 billion F-15 Eagle contract ceiling, which could support defense revenue through 2037 and include modernization, sustainment, and foreign military sales. However, the indefinite-delivery/indefinite-quantity award is a maximum authorization—not guaranteed revenue—and only about $344,000 was initially funded. F-15 Eagle Contract Announcement Positive Sentiment: Some valuation analysis argues Boeing may be undervalued after a roughly 10% annual decline, citing long-term defense contracts and technology partnerships as potential cash-flow catalysts. Execution remains the key risk. Boeing Stock Could Be Undervalued Boeing Stock Performance NYSE:BA opened at $212.48 on Thursday. The company has a market cap of $167.94 billion, a price-to-earnings ratio of 91.98 and a beta of 1.21. The Boeing Company has a 1 year low of $176.77 and a 1 year high of $254.35. The stock’s 50 day simple moving average is $221.15 and its two-hundred day simple moving average is $221.68. The company has a debt-to-equity ratio of 6.77, a current ratio of 1.14 and a quick ratio of 0.33. Boeing (NYSE:BA – Get Free Report) last posted its earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) EPS for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.42). The firm had revenue of $24.56 billion for the quarter, compared to the consensus estimate of $24.26 billion. Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. The firm’s revenue was up 8.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($1.24) earnings per share. As a group, equities analysts anticipate that The Boeing Company will post -0.87 earnings per share for the current fiscal year.
Analyst Ratings Changes Several equities analysts have weighed in on BA shares. The Goldman Sachs Group downgraded shares of Boeing from a “buy” rating to a “hold” rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. increased their price objective on shares of Boeing from $270.00 to $290.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Btg Pactual set a $260.00 price objective on shares of Boeing in a research report on Tuesday, July 14th. Argus upgraded shares of Boeing from a “hold” rating to a “buy” rating and set a $265.00 target price on the stock in a research note on Tuesday, August 11th. Finally, Wolfe Research downgraded shares of Boeing from an “outperform” rating to a “hold” rating in a report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $272.58.
Read Our Latest Analysis on Boeing
Boeing Profile (Free Report)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
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It has been about a month since the last earnings report for Boeing (BA - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Boeing due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for The Boeing Company before we dive into how investors and analysts have reacted as of late.
Boeing's Q2 Loss Wider Than Estimated, Revenues Increase Y/Y
The Boeing Company incurred an adjusted loss of 76 cents per share in the second quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 34 cents. The bottom line improved from the year-ago quarter’s reported loss of $1.24 per share.
Including one-time items, the company reported a GAAP loss of 67 cents per share, narrower than the year-ago quarter’s reported loss of 92 cents.
BA’s Total RevenuesRevenues amounted to $24.56 billion, which marginally outpaced the Zacks Consensus Estimate of $24.05 billion by 2.1%. The top line also surged 8% from the year-ago quarter’s reported figure of $22.75 billion.
BA’s Total BacklogBacklog at the end of second-quarter 2026 totaled $715.3 billion, up from $682.2 billion recorded at the end of 2025.
BA’s Segmental PerformancesCommercial Airplanes: Revenues in this segment surged 8% year over year to $11.8 billion, driven by higher jet deliveries. The segment incurred an operating loss of $322 million compared with the year-ago quarter’s operating loss of $557 million.
During the quarter under review, Commercial Airplanes delivered 171 airplanes and backlog included over 6,200 airplanes valued at a record $597 billion.
Boeing Defense, Space & Security (“BDS”): The segment recorded revenues of $7.5 billion, reflecting year-over-year growth of 13%. It generated an operating loss of $15 million against the year-ago quarter’s income of $110 million.
Global Services: The segment recorded revenues of $5.3 billion, reflecting year-over-year growth of 1%. This unit generated an operating income of $0.97 billion compared with the year-ago quarter’s figure of $1.05 billion.
BA’s Financial ConditionBoeing exited second-quarter 2026 with cash and cash equivalents of $7.24 billion and short-term and other investments of $12.78 billion. At the end of 2025, the company had cash and cash equivalents of $10.92 billion and short-term and other investments worth $18.48 billion.
Long-term debt amounted to $41.34 billion, down from $45.64 billion recorded at the end of 2025.
The company’s net cash provided by operating activities in the first six months of 2026 was $1.19 billion against cash used of $1.39 billion in the year-ago period.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted 7.29% due to these changes.
VGM ScoresAt this time, Boeing has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Boeing has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerBoeing belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, Northrop Grumman (NOC - Free Report) , has gained 2.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Northrop Grumman reported revenues of $10.88 billion in the last reported quarter, representing a year-over-year change of +5.1%. EPS of $7.68 for the same period compares with $7.11 a year ago.
Northrop Grumman is expected to post earnings of $7.26 per share for the current quarter, representing a year-over-year change of -5.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Northrop Grumman. Also, the stock has a VGM Score of B.
The Pentagon just handed Boeing a sole-source F-15 contract with a staggering ceiling figure, but the amount actually obligated tells a very different story about what investors are really buying.
The number that matters for Boeing (NYSE:BA | BA Price Prediction) after its new F-15 award is $343,740. And yes, that’s not even half a million. That is the amount actually obligated when the Pentagon announced the sole-source Eagle Crest contract in the official notice on August 24, 2026. Everything above that figure is merely potential.
The $131.23 billion figure cited across financial media is a ceiling for an indefinite-delivery, indefinite-quantity contract. The vehicle can cover aircraft production, modernization, retrofits, sustainment, and depot capabilities for the Air Force, Air National Guard, and overseas customers such as Israel, Japan, Saudi Arabia, and South Korea. Its ordering window stretches into 2036, with work expected to continue through August 2037.
Boeing does not receive that money by signing. Task orders are placed and funded one at a time, and each one must be negotiated, delivered, and paid for.
Someone could reasonably assume the company just booked a decade of guaranteed revenue. Buying BA stock off of that would be a misreading. What Boeing received is an exclusive lane, and whether that lane fills with profitable orders depends on Air Force budgets, foreign military sales approvals, and, above all, Boeing’s own execution, which has been the segment’s persistent weakness.
That said, it’s still worth looking deeper into Boeing to see if it’s worth buying regardless.
What a $131 Billion Ceiling Actually Means An IDIQ contract is a purchasing framework. The government authorizes itself to place task orders with a selected contractor up to a maximum aggregate value of $131.23 billion over a defined period.
Only the tiny initial obligation is contract dollars in hand. The $343,740 figure is the funded floor of a framework whose ceiling depends on future appropriations, future foreign military sales approvals, and future decisions within the Pentagon that have not yet been made.
For context on realistic scale, the FY 2027 request procures 24 F-15EX aircraft and funds the conversion of legacy F-15C/D and A-10 units to the F-15EX airframe. That is a real, funded program, and its annual dollars sit far below the headline ceiling.
The sole-source language is where the value quietly lives. Boeing owns the airframe, so no competitor can bid on this vehicle, which guarantees who receives whatever orders arrive. Sole-source status simply routes demand toward Boeing.
Market Signals Skepticism On the Award Boeing shares closed at $212.09 on August 26, 2026, up 0.48% on the day. Over the past week, the stock is down 4.55%, and over the past year it is down 9.68%.
The award was announced on August 24 with after-hours strength. Two sessions later, the stock had given back more than it had added over the prior week, which suggests the market does not view the ceiling as a step-change in earnings power.
Valuation explains the caution. Boeing trades at a trailing PE of 76 on TTM diluted EPS of 2.78, with a book value of $7.72 per share and no dividend paid since early 2020.
Analysts still carry an average target of $274.04 with a ratings mix of 4 strong buy, 17 buy, 6 hold, and 1 strong sell. That optimism was priced in before the F-15 headline, which is why the ceiling announcement has moved the stock so little.
Bear Case: Execution Is the Real Constraint Boeing’s Defense, Space & Security segment produced revenue of $7.483 billion in the second quarter of 2026, up 13% year over year. It swung to an operating loss of $15 million from a profit of $110 million a year earlier, driven by a $280 million charge on the VC-25B presidential aircraft program.
That is the pattern to worry about, because revenue growth at BDS keeps arriving alongside charges on fixed-price development programs. Management has guided the segment to a full-year 2026 operating margin of about 2.5%, including the VC-25B charge, with a stated goal of high single-digit operating margins by the end of the decade.
The F-15 line itself is a mature program with an existing global customer base, so it is less likely to produce fresh development surprises. It also cannot repair the segment’s structural profitability on its own, because most of the ceiling value depends on task orders that have not yet been priced or scoped.
Consolidated results reinforce the concern. Q2 2026 revenue of $24.56 billion, up 7.96%, produced a core loss per share of -0.76 against a consensus of -0.34, missing expectations by a wide margin.
Free cash flow was positive at $631 million, and net income remained negative at -$428 million. Interest and debt expense continues to run near $600 million per quarter, with debt ending the quarter at $45.9 billion against cash and marketable securities of $20 billion.
A ceiling contract contributes nothing to servicing that debt until task orders are issued and executed profitably. Given a defense segment that just booked another fixed-price charge, treating $131.23 billion as revenue is the exact analytical error the announcement invites.
Bottom Line The clean reading of the F-15 award is that it removes competition from a race Boeing already led. That is worth something for a company whose commercial recovery is real, but whose defense segment keeps giving back margin through charges on programs it committed to years ago.
Investors chasing the stock at the ceiling figure are trusting Boeing to convert a decade of potential orders into on-time, profitable deliveries, even as the same segment is guided to a 2.5% operating margin for 2026. The near-term evidence does not yet support that trust.
A more careful posture is to wait for BDS margins to move toward management’s stated glide path before treating the F-15 ceiling as meaningful future earnings. That means watching whether the VC-25B stays within its current loss estimate through first delivery in 2028, whether the KC-46 stays quiet, and whether early F-15 task orders include pricing that reflects Boeing’s uncontested position.
For long-term holders, caution here means distinguishing between an award that guarantees Boeing exclusive access to future orders and a company that has yet to prove it can convert that access into profitable deliveries. On the headline alone, the stock is a bear.
Contact [email protected] for any questions or corrections.
Investors looking at the future of flight face a choice between a legacy giant and a disruptive newcomer. Choosing between Boeing Co (BA -0.03%) and Joby Aviation (JOBY -2.38%) depends on your appetite for risk.
Boeing remains an essential provider of commercial jets and defense systems globally. Joby Aviation is building an electric air taxi service designed to bypass urban traffic. Comparing them means weighing a massive, recovering manufacturer against a high-growth start-up that is still working to bring its primary product to the mass market.
The case for BoeingBoeing develops and services commercial airplanes and defense products for customers in over 150 countries, positioning it as a titan among industrial stocks. Its primary buyers include major commercial airlines and the U.S. government, specifically NASA and the Department of Defense. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached approximately $89.5 billion, a 34.5% increase from the prior year. The company reported net income of roughly $2.2 billion for the period. This resulted in a net margin of about 2.5%, a notable improvement from the negative margin reported in the previous fiscal year.
As of its December 2025 balance sheet, the debt-to-equity ratio was nearly 10x, indicating that total liabilities are 10 times shareholder equity. The so-called current ratio, which measures the ability to pay short-term obligations with short-term assets, was roughly 1.1x. Free cash flow, calculated as cash from operations minus capital expenditures, was approximately negative $1.9 billion for the fiscal year. Note that stock-based compensation (SBC) accounted for roughly 40% of operating cash flow, thereby inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
The case for Joby AviationJoby Aviation is developing an all-electric vertical-takeoff-and-landing aircraft for an aerial ridesharing service. It maintains strategic partnerships with Delta Air Lines (DAL -1.32%) and Toyota Motor Corporation, along with contracts for the U.S. Air Force. The acquisition of Blade Urban Air Mobility helped the company gain an established customer base and infrastructure in key urban corridors.
In FY 2025, revenue jumped to nearly $53.4 million, a massive leap from the roughly $136,000 recorded in 2024. This growth was largely driven by its move toward full commercialization and the integration of its aviation service segments. Despite the higher revenue, Joby Aviation reported a net loss of approximately $930 million for the year.
As of its December 2025 balance sheet, the debt-to-equity ratio is 0.0x. This indicates that total debt is minimal relative to shareholders' equity. Free cash flow was negative at nearly $563.8 million, reflecting the significant cash used to build out its flight operations.
Risk profile comparisonBoeing faces risks from certification and production delays for its 777X and 737 aircraft programs. It also manages complex supply chain constraints while integrating Spirit AeroSystems into its operations. Finally, the company relies on fixed-price contracts for defense programs, which can lead to losses if costs exceed expectations.
Joby must navigate the regulatory hurdles of obtaining FAA type certification and production approval before it can launch commercial services. The company also faces recurring net losses and depends on a single aircraft type for its initial rollout. Competition in the space includes Archer Aviation Inc (ACHR -3.04%), which is also pursuing the urban air mobility market.
Valuation comparisonBoeing offers a more traditional valuation based on future earnings estimates, whereas Joby Aviation is valued almost entirely on its speculative revenue potential.
MetricBoeingJoby AviationForward P/E3,333xn/aP/S ratio1.8x26.1xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Boeing is still working to recover from safety and supply chain issues. While revenue will rise about 9% to $97.7 billion this year, the company's net income will fall dramatically to around $85 million, according to consensus Wall Street analyst forecasts, hence its very high forward P/E ratio.
But don't count Boeing out. It is among the largest aerospace and defense companies, giving it excellent long-term prospects due to its leading position in the growing commercial aerospace industry. In the first quarter of its current fiscal year, the order backlog rose in the double digits, setting a new record. Backlogs mean future sales are strong and show the industry believes in the business.
In 2025, the U.S. federal government created the framework for real-world testing of eVTOL aircraft, a concrete step toward making Joby's vision a reality. Japan, South Korea, and Saudi Arabia are other countries building similar regulatory frameworks. A lot still has to happen for either company's aircraft to get into the skies, but the notion that the nation's airspace is being regulated in a way that is holding back growth is one that has found favor.
Joby recently tested its Blade aircraft in New York City across different charging environments and on real-world routes it proposes, such as flying from JFK Airport, on the city's outskirts, into Manhattan. Joby is further along with its manufacturing capabilities, embedding Toyota philosophies throughout its system. Even though it is further along the path to market, analysts don't see Joby turning a profit through 2030, a year in which consensus projects $2.3 billion of revenue and a net loss of around $195 million.
It's tempting to go for a more speculative stock like Joby to grab a potential huge payoff, but Boeing is too essential to the U.S. economy and defense industry that, while it may never be a growth stock, it is certain to churn out value for long-term shareholders.
Key Takeaways Boeing's defense revenues rose 13% to $7.48 billion, while backlog reached $85 billion.General Dynamics booked nearly $20 billion in orders, lifting its estimated contract value to $186.9 billion.Both companies are advancing major programs as defense spending and military modernization remain strong. Boeing (BA - Free Report) and General Dynamics (GD - Free Report) are well positioned to benefit from heightened global geopolitical tensions, which are driving governments to strengthen their defense capabilities and increase military spending. Rising conflicts, strategic competition among major powers, and growing national-security concerns are prompting countries to reassess military readiness and accelerate modernization programs.
This creates a favorable long-term demand backdrop for both companies. As governments commit to multi-year defense programs, Boeing and General Dynamics can benefit from larger contract opportunities, stronger backlogs and greater revenue visibility. Continued military modernization and the need to replace aging equipment further reinforce the industry's long-term growth prospects, making geopolitical instability an important structural tailwind for these defense contractors.
Let's compare the two stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of BA StockBoeing continues to witnesses a solid inflow of contracts. In the second quarter of 2026, Boeing Defense, Space & Security (“BDS”) revenues increased 13% year over year to $7.48 billion, driven by higher volume, including classified programs, missiles and weapons, and KC-46A activity. The segment booked $7 billion of orders and ended the quarter with an $85 billion backlog, with 27% tied to customers outside the United States. Management also noted increased demand in missiles and munitions and secure communications satellites. The company is working to improve contract underwriting and remains selective on new bids, which should help reduce the risk of repeating losses on legacy fixed-price development programs.
The U.S. Navy MQ-25A Stingray completed its first flight and received Milestone C, clearing the program for low-rate initial production. The U.S. Air Force T-7A Red Hawk also achieved Milestone C and began low-rate initial production. These milestones shift key programs from development toward production and fleet support, which can broaden future revenue opportunities.
Factors Acting in Favor of GD StockGeneral Dynamics ended second-quarter 2026 with nearly $20 billion in orders, resulting in a healthy 1.4-to-1 book-to-bill ratio. Its estimated contract value reached $186.9 billion, highlighting strong revenue visibility. Management also raised its 2026 outlook to approximately $55.7 billion revenues. Major recent awards, including contracts for armored vehicles, Abrams engineering and munitions, further demonstrate strong demand and support General Dynamics’ long-term growth prospects.
In the second quarter of 2026, management noted that U.S. defense spending remained at heightened levels and the administration continued to support further increases. Marine Systems ended the quarter with a backlog of $65.2 billion, up 23% year over year. Management now expects 2026 Marine Systems revenues of approximately $18 billion and an operating margin of 7.4%.
How Do Zacks Estimates Compare for BA & GD?The Zacks Consensus Estimate for Boeing’s 2026 and 2027 earnings per share (EPS) indicates an increase of 91.82% and 552.32%, respectively, year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for General Dynamics’ 2026 and 2027 EPS indicates an increase of 9.18% and 9.92%, respectively, year over year. GD’s long-term (three to five years) earnings growth rate is 10.2%.
Image Source: Zacks Investment Research
Valuation for BA & GDBA shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.55X compared with GD’s 1.79X.
Debt Position of BA & GDCurrently, Boeing’s total debt to capital is 88.24% compared with General Dynamics’ 21.89%.
Image Source: Zacks Investment Research
The time-to-interest earned ratio for Boeing and General Dynamics is 2.1 and 22.4, respectively. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
BA & GD’s Price PerformanceIn the past six months, shares of General Dynamics have risen 4.2%, while those of Boeing have declined 8.6%. The industry has declined approximately 14.1% during the same period.
Image Source: Zacks Investment Research
BA or GD: Which Is a Better Choice Now?Boeing continues to benefit from strong defense demand, a growing contract pipeline and key program milestones that are advancing major platforms toward production and long-term fleet support. General Dynamics continues to benefit from strong defense spending and robust demand, with a growing backlog and major contract wins supporting strong revenue visibility and long-term growth, particularly in its Marine Systems business.
Our choice at the moment is General Dynamics, given its better debt management and price performance than Boeing. Both BA and GD carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Blue Edge Capital LLC acquired a new stake in The Boeing Company (NYSE:BA – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 21,250 shares of the aircraft producer’s stock, valued at approximately $4,600,000.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Measured Wealth Private Client Group LLC bought a new stake in shares of Boeing in the 3rd quarter valued at approximately $25,000. Strive Financial Group LLC acquired a new position in Boeing in the fourth quarter worth $25,000. CrossGen Wealth LLC acquired a new position in Boeing in the fourth quarter worth $26,000. Ares Financial Consulting LLC bought a new stake in Boeing during the fourth quarter valued at $26,000. Finally, 1 North Wealth Services LLC bought a new stake in Boeing during the fourth quarter valued at $27,000. Institutional investors and hedge funds own 64.82% of the company’s stock.
Analysts Set New Price Targets A number of research firms have recently issued reports on BA. Citigroup downgraded shares of Boeing from a “buy” rating to a “sell” rating in a research report on Tuesday, August 11th. William Blair reaffirmed an “outperform” rating on shares of Boeing in a research report on Tuesday, July 28th. JPMorgan Chase & Co. increased their price objective on shares of Boeing from $270.00 to $290.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. The Goldman Sachs Group downgraded Boeing from a “buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Finally, UBS Group began coverage on Boeing in a research report on Tuesday, August 11th. They set a “buy” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, six have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $272.58.
View Our Latest Analysis on BA Boeing News Roundup Here are the key news stories impacting Boeing this week:
Positive Sentiment: Boeing secured a sole-source F-15 sustainment contract with a potential ceiling of approximately $131.23 billion through 2037. The award strengthens Boeing’s long-term defense backlog, although the ceiling represents a maximum potential value rather than guaranteed revenue. Boeing’s $131B F-15 Win Positive Sentiment: Boeing and RTX won a combined $766 million in B-52 modernization contracts, providing additional evidence of continued U.S. defense demand for Boeing’s products and services. Boeing, RTX Win B-52 Contracts Positive Sentiment: Recent commentary portrays Boeing’s turnaround as progressing, with profitability and strong revenue growth expected as the company stabilizes production. Bernstein also initiated or reiterated a Buy rating, while valuation analysis suggested the shares could be undervalued after their recent decline. Boeing vs. Joby Aviation Neutral Sentiment: Reports said President Trump purchased as much as $500,000 of Boeing stock on the same day the Navy awarded Boeing a contract worth up to $880 million. The purchase may attract attention, but it does not change Boeing’s underlying financial outlook. Trump Bought Boeing Stock Negative Sentiment: Boeing has posted contractor openings for engineering and technical roles during a labor dispute with the SPEEA white-collar union. The move raises concerns about a potential strike, workforce disruption and additional execution risk. Boeing Posts Contract Jobs Negative Sentiment: A Boeing quality manager publicly expressed serious concerns about the 787 and 737 MAX, reinforcing ongoing worries about manufacturing quality, regulatory scrutiny and production reliability. Boeing Quality Concerns Negative Sentiment: Investors remain cautious because Boeing continues to carry substantial debt and faces commercial-aircraft headwinds. Commentary also questioned whether the $131 billion F-15 figure could translate into meaningful near-term cash flow, while the company’s decision to repurchase a business it previously sold highlighted concerns about capital allocation. Boeing F-15 Contract Ceiling Boeing Price Performance Shares of NYSE:BA opened at $209.78 on Friday. The firm’s 50 day moving average is $220.87 and its two-hundred day moving average is $221.44. The firm has a market capitalization of $165.81 billion, a P/E ratio of 90.82 and a beta of 1.21. The company has a current ratio of 1.14, a quick ratio of 0.33 and a debt-to-equity ratio of 6.77. The Boeing Company has a 52 week low of $176.77 and a 52 week high of $254.35.
Boeing (NYSE:BA – Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.34) by ($0.42). Boeing had a negative return on equity of 346.82% and a net margin of 2.41%.The business had revenue of $24.56 billion for the quarter, compared to analyst estimates of $24.26 billion. During the same quarter in the prior year, the firm posted ($1.24) earnings per share. The business’s quarterly revenue was up 8.0% on a year-over-year basis. Analysts anticipate that The Boeing Company will post -0.87 earnings per share for the current year.
About Boeing (Free Report)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
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Negotiators from Boeing (BA.N) and its largest white-collar union plan to meet Monday to resume contract discussions, a spokesman for the Society of Professional Engineering Employees Association (SPEEA) said.
SPEEA's roughly 17,000 members overwhelmingly rejected Boeing's contract offer last week.
Union members, which include engineers and technical workers, said in a survey by SPEEA this week that they want larger and immediate guaranteed wage increases from Boeing.
The second priority, according to survey results shared by SPEEA, is more money for annual performance-based raises. Better annual cost-of-living adjustments were the third-highest priority, according to the nearly 13,000 union members who took the survey.
"We want to reach an agreement before the current contract expires and look forward to finding a solution with SPEEA at the bargaining table," a Boeing spokesman told Reuters.
The company declined to comment further.
The planemaker posted contractor jobs on Tuesday, apparently in preparation for a strike after the current contract expires on Oct. 6.
SPEEA members perform critical work in Boeing's push to certify its 737 MAX 10 and 777-9, both of which are several years behind schedule. A work stoppage would further delay the two aircraft from entering service with airlines waiting for delivery.
The U.S. Department of War on Monday awarded Boeing a $131.23 billion indefinite-delivery/indefinite-quantity (IDIQ) contract to support the F-15 Eagle Crest program, which oversees the F-15 fighter aircraft fleet.
The contract covers aircraft production, systems integration, upgrades and sustainment, including new organic depot maintenance aimed at keeping F-15 aircraft mission-ready for the U.S. Air Force, Air National Guard and other Department of War customers.
The work will be performed at St. Louis, Missouri, and is expected to be completed by August 2037, the department said in its website.
The ordering period runs through August 24, 2031, with an option to extend it through August 24, 2036.
The contract also covers Foreign Military Sales to Japan, Israel, Saudi Arabia, South Korea, Singapore, Indonesia and Poland.
The contract was awarded on a sole-source basis.
CHINA - 2026/08/18: In this photo illustration, the Boeing logo is displayed on a tablet screen. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
The recovery in aircraft deliveries by the manufacturer is genuine, yet the cash it generates is still a minimal part of the yearly figure that management states is easily achievable.
Boeing (BA) provided more airplanes in the second quarter of 2026 than in any quarter since 2018, yet the stock has experienced a decline over the last year. The unsettling figure for shareholders is not a multiplicative issue. It is how minimal the cash flow from that quarter was and how significantly the full-year forecast is below the annual figure management continues to highlight.
Boeing’s 2026 Free Cash Flow Projection Is $1 Billion To $3 BillionThis is the company’s own forecast in comparison to trailing revenue of $94.0 billion. Management highlights another figure: $10 billion of annual free cash flow, which it considers very feasible, with substantial growth anticipated beyond that into the next decade. Even the peak of the 2026 range is less than one-third of that, and management refrained from detailing the pathway there, stating it wanted to conclude its planning phase first.
171 Airplanes, And $631 Million Of Total Company CashThe limiting factor is not solely volume; it is also the income generated per aircraft. According to the company, the 737 and 787 programs are operating at reduced cash margins, slightly above breakeven, and it forecasts 737 margins will only match their 2018 level by the decade’s end, with 787 margins expected to exceed their 2018 level by that time. The issue lies in the backlog: management states that the drag in pricing diminishes only as deliveries progress, with better-priced orders positioned further back in the sequence. The trailing net margin stands at 2.6% while operating margin is negative 5.4%, thus any existing profit is coming from below the operating line rather than from the production facilities. Having a delivery rate that barely covers its own expenses is less than optimal.
Rate 10 On The 787 Depends On Its Engine SupplierThe rate enhancements necessary to bridge the gap have designated limitations. Boeing is increasing the 737 production to 47 airplanes per month, with 52 being the next anticipated rate increase, and management cites that the challenges increase beyond 52 due to supply chain complexities. Regarding the 787, engine deliveries lagged in the first half of 2026, and management indicates the recovery of engine deliveries it is pursuing with GE is what will allow the program to progress to rate 10, and that GE is optimistic about meeting this plan. Deliveries will remain inconsistent throughout the rest of 2026 while seat certifications delay delivery documentation rather than production. In defense, management anticipates a full-year 2026 margin around 2.5% including a $280 million VC-25B loss, compared to 3.5% in the second quarter when excluding it.
The Risk Is The Delay, Not The Record $715 Billion BacklogDemand is not in question. The backlog is at a historic high of $715 billion. The concern lies in how many years shareholders will wait before cash starts to flow in, and thus far the operational advancements have not been reflected in the stock price: over the past year, BA has returned -4.4% compared to +20.2% for the S&P 500, and the shares are trading at approximately 85% of their 52-week peak. This indicates a level of anxiety proportional to the timeline, not to any danger to the business itself. If engines are delivered and rate 10 arrives as planned, it would change the outlook; until then, the pressing question is whether a decline of this nature has historically warranted a purchase.
The Trefis High Quality (HQ) Portfolio uses a rules-based methodology to select and systematically rebalance 30 stocks screened for operational quality and valuation metrics. This strategy evaluates companies across a broad market universe and measures its historical performance against a composite benchmark of the S&P 500, S&P Mid-Cap, and Russell 2000 indices.
Key Takeaways Boeing secured a P-8A contract worth up to $156.2M, with work expected to run through August 2031.Rising maritime security concerns and defense spending are supporting demand for Boeing's P-8 Poseidon.Boeing's P-8 supports maritime patrol, anti-submarine warfare, surveillance and reconnaissance missions. The Boeing Company (BA - Free Report) continues to strengthen its position in the military aircraft market through its P-8 Poseidon program. Rising defense spending, growing maritime security concerns and the need for advanced surveillance and anti-submarine warfare capabilities are driving demand for modern military aircraft. This is likely to support continued order activity for Boeing’s P-8 program and strengthen its defense business.
In August 2026, Boeing secured a contract valued at up to $156.2 million to support its P-8A Poseidon program. The deal includes engine build-up kits for the U.S. Navy and Foreign Military Sales customers, with work expected to be completed by August 2031.
This award highlights the sustained demand for the P-8 Poseidon platform, both from the U.S. Navy and international customers. The aircraft plays a critical role in maritime patrol, anti-submarine warfare, intelligence, surveillance and reconnaissance missions, making it an important asset for countries seeking to strengthen their maritime defense capabilities.
Growing geopolitical tensions, expanding naval fleet and rising investments in maritime surveillance should continue to support demand for advanced military aircraft. These trends, combined with Boeing’s strong capabilities in military aircraft and aftermarket support, are expected to create additional opportunities for its defense business.
Overall, the latest contract win underscores the long-term importance of the P-8 Poseidon program. Backed by rising demand for maritime surveillance and anti-submarine warfare capabilities, Boeing’s P-8 aircraft program should continue to support the growth of its defense business.
Other Companies Benefiting from Military Aircraft Demand
Apart from Boeing, other defense companies are also benefiting from rising defense spending and growing demand for advanced military aircraft. These companies are discussed below:
Lockheed Martin Corporation (LMT - Free Report) is benefiting from strong demand for its military aircraft, including the F-35 fighter jet and C-130 transport aircraft, supported by fleet modernization and rising defense budgets.
Northrop Grumman Corporation (NOC - Free Report) is also benefiting from growing demand for advanced manned and unmanned aircraft used in surveillance, intelligence and other defense missions.
The Zacks Rundown for BA
Shares of Boeing have risen 1.3% in the past month against the Zacks aerospace-defense industry’s decline of 2.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, BA is currently trading at a forward 12-month sales multiple of 1.58X, a discount when stacked up with the industry average of 2.50X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BA’s 2026 and 2027 earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
BA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bank of Nova Scotia acquired a new stake in shares of The Boeing Company (NYSE:BA – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 221,835 shares of the aircraft producer’s stock, valued at approximately $48,043,000.
Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Boeing by 5.1% during the 4th quarter. Vanguard Group Inc. now owns 70,989,438 shares of the aircraft producer’s stock valued at $15,413,227,000 after purchasing an additional 3,460,021 shares during the last quarter. Newport Trust Company LLC lifted its position in Boeing by 1.0% during the fourth quarter. Newport Trust Company LLC now owns 29,485,294 shares of the aircraft producer’s stock valued at $6,401,847,000 after purchasing an additional 286,848 shares in the last quarter. Geode Capital Management LLC grew its holdings in Boeing by 3.2% during the fourth quarter. Geode Capital Management LLC now owns 17,025,435 shares of the aircraft producer’s stock valued at $3,679,592,000 after purchasing an additional 533,753 shares during the period. Fisher Asset Management LLC increased its position in Boeing by 2.5% in the fourth quarter. Fisher Asset Management LLC now owns 5,640,900 shares of the aircraft producer’s stock worth $1,224,752,000 after buying an additional 135,860 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its position in Boeing by 3.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 4,370,415 shares of the aircraft producer’s stock worth $948,905,000 after buying an additional 138,469 shares in the last quarter. Institutional investors own 64.82% of the company’s stock.
Boeing Price Performance Boeing stock opened at $214.20 on Monday. The Boeing Company has a 52-week low of $176.77 and a 52-week high of $254.35. The company has a quick ratio of 0.33, a current ratio of 1.14 and a debt-to-equity ratio of 6.77. The firm’s fifty day moving average is $222.11 and its 200 day moving average is $222.18. The company has a market cap of $169.30 billion, a price-to-earnings ratio of 92.73 and a beta of 1.21.
Boeing (NYSE:BA – Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share for the quarter, missing the consensus estimate of ($0.34) by ($0.42). The company had revenue of $24.56 billion for the quarter, compared to the consensus estimate of $24.26 billion. Boeing had a negative return on equity of 346.82% and a net margin of 2.41%.The company’s revenue was up 8.0% compared to the same quarter last year. During the same period in the previous year, the firm earned ($1.24) earnings per share. Sell-side analysts forecast that The Boeing Company will post -0.87 EPS for the current fiscal year. Analysts Set New Price Targets BA has been the topic of a number of analyst reports. Sanford C. Bernstein began coverage on Boeing in a research report on Tuesday, August 11th. They set an “outperform” rating on the stock. Barclays lowered shares of Boeing from an “equal weight” rating to an “underweight” rating in a research report on Tuesday, August 11th. Royal Bank Of Canada decreased their price objective on shares of Boeing from $275.00 to $265.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 29th. The Goldman Sachs Group cut shares of Boeing from a “buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Finally, Robert W. Baird set a $300.00 target price on shares of Boeing in a report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Boeing currently has a consensus rating of “Moderate Buy” and a consensus target price of $272.58.
View Our Latest Stock Analysis on Boeing
Key Headlines Impacting Boeing Here are the key news stories impacting Boeing this week:
Positive Sentiment: The U.S. State Department approved a potential $4.5 billion sale of KC-46A tanker aircraft to Qatar. The approval supports Boeing’s defense backlog, although the transaction still requires finalization. US approves potential $4.5B sale of Boeing KC-46A tankers to Qatar Positive Sentiment: Boeing’s agreement to sell or transfer businesses including Wisk Aero, Insitu and SkyGrid to Archer Aviation, while taking a strategic stake in Archer, could generate cash and provide exposure to autonomous and electric aviation markets. However, the deal’s financial impact and execution remain uncertain. Archer Aviation bets big on becoming more than an air taxi company Neutral Sentiment: AerCap delivered its tenth Boeing 787 to Grupo Aeromexico, marking its 100th 787 delivery from its direct order book. The milestone signals continuing customer demand for the Dreamliner but is not a new Boeing order or immediate revenue catalyst. AerCap Holdings compared with Boeing Negative Sentiment: Voting ends on Boeing’s proposed four-year contract with the Society of Professional Engineering Employees in Aerospace, representing roughly 17,000 engineers and technical workers. A rejection could authorize a strike after the current contracts expire on October 6, raising concerns about production, certification and delivery schedules. Results were expected Friday afternoon. Boeing white-collar union contract vote results expected today Negative Sentiment: The labor uncertainty is outweighing recent operating progress, including higher commercial deliveries and efforts to increase 737 production. Investors appear concerned that a work stoppage could interrupt Boeing’s recovery. Boeing slides as labor vote uncertainty outweighs operational progress Negative Sentiment: Boeing is advancing repairs to Air Force One, but window replacement and interior work could threaten the program’s schedule, adding another execution risk to the company’s defense business. Boeing advances Air Force One repairs Boeing Company Profile (Free Report)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
Further Reading Five stocks we like better than Boeing VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding BA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Boeing Company (NYSE:BA – Free Report).
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Barbara Oil Co. purchased a new stake in shares of The Boeing Company (NYSE:BA – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 22,500 shares of the aircraft producer’s stock, valued at approximately $4,871,000. Boeing accounts for about 1.6% of Barbara Oil Co.’s portfolio, making the stock its 18th biggest holding.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Solstein Capital LLC bought a new position in shares of Boeing in the 2nd quarter valued at about $41,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Boeing during the 2nd quarter worth approximately $181,092,000. Meiji Yasuda Asset Management Co Ltd. bought a new stake in shares of Boeing during the second quarter worth approximately $678,000. Clarion Wealth Managment Partners LLC bought a new stake in shares of Boeing during the second quarter worth approximately $249,000. Finally, Mission Financial Group LLC acquired a new position in Boeing in the second quarter valued at approximately $442,000. 64.82% of the stock is currently owned by institutional investors and hedge funds.
Boeing Price Performance BA stock opened at $214.20 on Monday. The company has a debt-to-equity ratio of 6.77, a current ratio of 1.14 and a quick ratio of 0.33. The stock has a market capitalization of $169.30 billion, a P/E ratio of 92.73 and a beta of 1.21. The business has a 50-day moving average of $222.11 and a 200-day moving average of $222.18. The Boeing Company has a fifty-two week low of $176.77 and a fifty-two week high of $254.35.
Boeing (NYSE:BA – Get Free Report) last announced its earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.42). The firm had revenue of $24.56 billion during the quarter, compared to analyst estimates of $24.26 billion. Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. The firm’s quarterly revenue was up 8.0% compared to the same quarter last year. During the same period in the prior year, the business posted ($1.24) EPS. On average, sell-side analysts anticipate that The Boeing Company will post -0.87 earnings per share for the current fiscal year. Wall Street Analysts Forecast Growth Several research analysts have recently issued reports on BA shares. JPMorgan Chase & Co. raised their price target on Boeing from $270.00 to $290.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Tigress Financial upped their price objective on Boeing from $295.00 to $305.00 and gave the company a “buy” rating in a report on Thursday, August 6th. The Goldman Sachs Group lowered Boeing from a “buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Royal Bank Of Canada reduced their target price on Boeing from $275.00 to $265.00 and set an “outperform” rating on the stock in a report on Wednesday, July 29th. Finally, Argus upgraded shares of Boeing from a “hold” rating to a “buy” rating and set a $265.00 price objective for the company in a report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Boeing presently has a consensus rating of “Moderate Buy” and a consensus price target of $272.58.
Get Our Latest Report on BA
Boeing News Summary Here are the key news stories impacting Boeing this week:
Positive Sentiment: The U.S. State Department approved a potential $4.5 billion sale of KC-46A tanker aircraft to Qatar. The approval supports Boeing’s defense backlog, although the transaction still requires finalization. US approves potential $4.5B sale of Boeing KC-46A tankers to Qatar Positive Sentiment: Boeing’s agreement to sell or transfer businesses including Wisk Aero, Insitu and SkyGrid to Archer Aviation, while taking a strategic stake in Archer, could generate cash and provide exposure to autonomous and electric aviation markets. However, the deal’s financial impact and execution remain uncertain. Archer Aviation bets big on becoming more than an air taxi company Neutral Sentiment: AerCap delivered its tenth Boeing 787 to Grupo Aeromexico, marking its 100th 787 delivery from its direct order book. The milestone signals continuing customer demand for the Dreamliner but is not a new Boeing order or immediate revenue catalyst. AerCap Holdings compared with Boeing Negative Sentiment: Voting ends on Boeing’s proposed four-year contract with the Society of Professional Engineering Employees in Aerospace, representing roughly 17,000 engineers and technical workers. A rejection could authorize a strike after the current contracts expire on October 6, raising concerns about production, certification and delivery schedules. Results were expected Friday afternoon. Boeing white-collar union contract vote results expected today Negative Sentiment: The labor uncertainty is outweighing recent operating progress, including higher commercial deliveries and efforts to increase 737 production. Investors appear concerned that a work stoppage could interrupt Boeing’s recovery. Boeing slides as labor vote uncertainty outweighs operational progress Negative Sentiment: Boeing is advancing repairs to Air Force One, but window replacement and interior work could threaten the program’s schedule, adding another execution risk to the company’s defense business. Boeing advances Air Force One repairs About Boeing (Free Report)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
See Also Five stocks we like better than Boeing VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding BA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Boeing Company (NYSE:BA – Free Report).
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Boeing (BA -0.42%) and Archer Aviation (ACHR +3.45%) recently made a definitive agreement that strategically strengthens both companies and makes them a bit more investable. Archer will acquire three businesses from Boeing in exchange for a near-20% stake in the electric vertical take-off and landing (eVTOL) business.
It's a good deal for both companies, as it derisks both companies' business models, gives Archer access to technology it couldn't develop itself, and gives Boeing an opportunity to profit from the eVTOL industry.
Boeing will receive 19.75% of Archer's outstanding Class A stock, while Archer will acquire the following businesses from Boeing in return:
Wisk, Boeing's business focused on developing autonomous eVTOL within a transportation-as-a-service (TaaS) model; SkyGrid, Boeing's aircraft-agnostic air traffic management solution, which can support autonomous and piloted air mobility, including eVTOLs; and Insitu, a designer, developer, and manufacturer of uncrewed aircraft systems, which already has over $200 million in annual revenue.
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Why the deal is good news for Archer Aviation The deal diversifies Archer's business, reduces risk, brings in much-needed early revenue, and accelerates its technological development. The diversification comes from adding Insitu's defense business and the potential for autonomous eVTOL from Wisk. Furthermore, SkyGrid gives Archer an infrastructure advantage and access to the eVTOL ecosystem.
In addition, it removes a potential rival in Wisk, as its autonomous eVTOL and SkyGrid could have significantly challenged piloted eVTOL. Acquiring Wisk also gives Archer the option to develop a comprehensive transportation-as-a-service (TaaS) business, as Wisk's eVTOLs are designed to operate in a TaaS model. Finally, Insitu's revenue could provide much-needed cash flow to Archer as it continues to develop its eVTOL business.
Image source: Boeing.
Boeing is getting a good deal, too It's no secret that the 737 MAX has proved problematic for Boeing and, thus far, hasn't generated the cash flow to comfortably fund investment in the next generation of narrow-body aircraft. To give you a sense of the scale of the challenge, former Boeing CEO Dave Calhoun is on record as stating that Boeing's next aircraft could cost $50 billion to develop.
That's a big number in itself, but it's an even bigger number when you consider where Boeing's free-cash-flow generation and debt have gone in the decade since the 737 MAX first took flight.
BA Free Cash Flow data by YCharts
That said, current CEO Kelly Ortberg is generating tangible results in improving the company, not least in 737 MAX delivery rates. This deal helps further Boeing's strategic aims. The stake in Archer is worth about $930 million on current valuation, and exiting the business refocuses management and resources on its core businesses. Moreover, the stake allows Boeing to participate in the growth of eVTOLs while retaining "access to the Wisk core autonomous flight technology for its current and next-generation commercial and defense aircraft," according to the press release.
All told, the deal strengthens the investment case for both stocks and should be welcomed by investors in both.
In August 2018, the then-president and now CEO of United Airlines Scott Kirby told a room of reporters at an aviation conference in Denver about the airline's big plans for the new Boeing 737 Max 10: lie-flat, premium seats and a host of profitable, transcontinental routes.
The plane was supposed to start flying in 2020.
Hundreds of those seats have been in storage because its certification — which was expected more than six years ago — is far behind schedule. Now, Boeing and many of its customers expect the company to win federal approval for the plane, the largest in the bestselling 737 Max family, soon, so United has to decide what to do with all those seats.
"We got a bunch of lie-flat seats that we don't know what to do with," Kirby told CNBC during an interview earlier this month at Newark Liberty International Airport in New Jersey. "They don't fit on other airplanes."
United hasn't disclosed the layout it will use on the planes, or where it will fly them. The airline set its earlier plans for the Boeing 737 Max 10 before it even offered a premium economy section.
The delays for both the newly approved Boeing 737 Max 7, the smallest model, and the yet-to-be-certified Max 10 came after the manufacturer had to redesign an anti-icing system. Boeing was also dealing with increased scrutiny after years of safety and manufacturing crises.
Boeing won approval for the 737 Max 7 earlier this month, with big customer Southwest Airlines expecting to fly them sometime in the first half of 2027.
United pivoted because of the Boeing delays and recently outfitted a subfleet of its Airbus A321neo narrow-body aircraft with 20 of the newly designed Polaris suites, premium economy options and other new seats as part of the industry's race to add high-yielding seating on its planes. It's dubbed the subfleet the "Coastliner" for transcontinental routes.
But the dimensions and requirements aren't the same on both planes, leaving United with a decision on what its interiors will look like.
It expects to get the first Boeing Max 10s in summer 2027. It has 167 of the aircraft on order, according to its most recent quarterly filing.
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As we look toward 2027, the contrast between a high-flying satellite newcomer and a legacy aerospace giant creates a unique dilemma for investors. You must choose between AST SpaceMobile Inc (ASTS +5.52%) and Boeing Co (BA -0.42%).
AST SpaceMobile is pioneering a space-based cellular network, while Boeing continues to be a titan in commercial aviation and defense. This comparison pits a speculative, rapid-growth technology story against a massive industrial turnaround effort. Deciding which to buy requires balancing the potential for massive disruption against the stability of established manufacturing.
The case for AST SpaceMobileAST SpaceMobile is building the first space-based cellular broadband network designed to connect directly to standard smartphones for commercial and government use. Its strategy, detailed in its latest annual report, relies on partnering with mobile network operators like AT&T Inc (T +0.56%) and Verizon Communications (VZ +0.53%) to fill coverage gaps for nearly 3 billion subscribers. With definitive agreements with these major carriers and various U.S. government agencies, customer concentration like this adds a layer of risk to the business. That said, it also counts Vodafone Group (VOD -0.31%) and Saudi Telecom Co as strategic international partners who help it navigate local regulatory markets.
In FY 2025, revenue reached approximately $70.9 million, a substantial jump from the $4.4 million reported in the prior fiscal year. The company reported a net loss of nearly $342 million for the period. While revenue growth is accelerating as the company begins its commercial rollout, profitability remains a distant goal during this build-out phase.
The current debt-to-equity ratio is roughly 1.2x, showing the company relies more on debt than equity to fund its operations. Free cash flow, which is cash flow from operations minus capital expenditures, was more than negative $1.1 billion for FY 2025, as the firm invested heavily in its proprietary manufacturing and launch capabilities.
The case for Boeing CoBoeing operates in the industrial stocks sector, manufacturing commercial airplanes, defense products, and space systems. According to its latest annual report, the company serves airlines and U.S.-allied government customers in over 150 countries. Revenue is heavily concentrated among a few major airline customers and defense programs, and customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached approximately $89.5 billion, a 34.5% increase from the prior year. The company reported net income of roughly $2.2 billion for the period. This resulted in a net margin of about 2.5%, a notable improvement from the negative margin reported in the previous fiscal year.
As of its December 2025 balance sheet, the debt-to-equity ratio was nearly 10x, indicating that total liabilities are 10 times shareholder equity. The so-called current ratio, which measures the ability to pay short-term obligations with short-term assets, was roughly 1.1x. Free cash flow, calculated as cash from operations minus capital expenditures, was approximately negative $1.9 billion for the fiscal year. Note that stock-based compensation (SBC) accounted for roughly 40% of operating cash flow, thereby inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparisonAST SpaceMobile carries risks related to its development-stage technology and the deployment of its satellite constellation. It depends on third-party launch providers and faces potential manufacturing delays or cost overruns that could drain capital. The company also faces competition from well-capitalized entities like Amazon.com Inc (AMZN -0.57%) and must navigate an ongoing 2026 lawsuit regarding finder's fees.
Boeing faces operational risks regarding the production and certification of its 737 and 777X aircraft programs. Quality issues and labor-related conflicts, involving a workforce where 40% are unionized, create ongoing uncertainty. The company also faces intense market pressure from Airbus while managing high debt levels and the integration of the Spirit AeroSystems acquisition.
Valuation comparisonBoeing appears more affordable based on its P/S ratio, while AST SpaceMobile does not have a Forward P/E based on future earnings estimates because it is not expected to turn a profit in the coming year..
MetricAST SpaceMobileBoeingForward P/En/a3,333xP/S ratio162x1.8xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
AST SpaceMobile expects its space-based network to give it a significant business in a few years. Essentially, AST SpaceMobile is a direct-to-device play to provide full mobile phone compatibility for major carriers without the need for specialized equipment. Many of its potential clients are also equity holders in the company, including AT&T, Verizon, Bell Canada, Rakuten, Vodafone, Alphabet Inc(GOOGL +1.22%), American Tower (AMT +0.05%), and Telus (TU -1.20%).
By the end of 2026, the company should have 45 satellites, which will allow it to fully service the U.S., and that should start to supercharge revenue growth. For fiscal 2026, Wall Street sees $149 million in sales, jumping to $725 million the following year, when the company is projected to turn its first modest profit. Free cash flow appears much more manageable, with analysts expecting positive free cash flow in 2029.
Boeing, meanwhile, is still working to recover from safety and supply chain issues. While revenue will rise about 9% to $97.7 billion this year, the company's net income will fall dramatically to around $85 million, according to consensus Wall Street analyst forecasts.
But don't count Boeing out. It is among the largest aerospace and defense companies, giving it excellent long-term prospects due to its leading position in the growing commercial aerospace industry. In the first quarter of its current fiscal year, the order backlog rose in the double digits, setting a new record. Backlogs mean future sales are strong and show the industry believes in the business.
If you're looking for a long-term growth opportunity, AST Spacemobile offers a likelihood of much better returns than Boeing, but with more risk. For those looking for a stable blue chip for the long haul, go with Boeing.
A Boeing logo is seen before the opening of the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 13, 2025. REUTERS/Benoit Tessier/File Photo Purchase Licensing Rights, opens new tab
CompaniesSEATTLE, Aug 21 (Reuters) - Voting on Boeing's (BA.N), opens new tab contract offer to its largest white-collar union ends on Friday, with results expected by mid-afternoon in Seattle.
Hoping to avoid a strike by thousands of engineers and technical workers, Boeing offered terms that were better than expected, several members of the Society of Professional Engineering Employees in Aerospace (SPEEA) told Reuters.
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However, neither of the bargaining unit councils for SPEEA's engineers and technicians units backed the offer. The technicians unit council recommended that members reject the offer, while the engineers unit council did not meet the 60% threshold needed to give members a recommendation to accept or reject.
The tentative agreement reached with Boeing in late July was endorsed by SPEEA's negotiating team. The engineers and technicians units negotiate collectively with Boeing, but they vote separately. The current contract expires in October.
Speaking to Wall Street analysts in July, Boeing CEO Kelly Ortberg said the company "began these discussions early, because we wanted to work towards an agreement that supports our employees and their families, creates greater clarity for our business and helps us stay focused on the progress we're making."
A work stoppage by SPEEA members would further delay Boeing's certification campaigns for its 737 Max 10 and 777-9, both of which are several years behind schedule.
The proposed four-year contract includes wage increases tied to inflation (capped at 3%) and an individual's performance, as well as other metrics determined by the company, but not specified in the contract.
Several SPEEA members who have already voted to reject the offer told Reuters that capping inflation-based raises at 3% nearly guarantees that their salaries will fall behind inflation.
In 2024, Boeing commercial airplane production in the Seattle area ground to a halt when the roughly 33,000 members of the International Association of Machinists and Aerospace Workers went on strike for seven weeks.
Reporting by Dan Catchpole in Seattle; editing by Philippa Fletcher
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Allworth Financial LP bought a new stake in shares of The Boeing Company (NYSE:BA – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 42,666 shares of the aircraft producer’s stock, valued at approximately $9,236,000.
Several other hedge funds have also made changes to their positions in BA. Measured Wealth Private Client Group LLC purchased a new stake in Boeing during the third quarter worth $25,000. Strive Financial Group LLC bought a new stake in Boeing during the 4th quarter valued at $25,000. Ares Financial Consulting LLC purchased a new position in shares of Boeing in the 4th quarter valued at $26,000. CrossGen Wealth LLC purchased a new position in shares of Boeing in the 4th quarter valued at $26,000. Finally, Strategic Wealth Advisors LLC bought a new position in shares of Boeing in the 4th quarter worth $27,000. 64.82% of the stock is currently owned by hedge funds and other institutional investors.
Boeing Stock Down 3.1% Boeing stock opened at $215.22 on Friday. The company has a debt-to-equity ratio of 6.77, a current ratio of 1.14 and a quick ratio of 0.33. The stock has a market capitalization of $170.10 billion, a price-to-earnings ratio of 93.17 and a beta of 1.21. The Boeing Company has a 1-year low of $176.77 and a 1-year high of $254.35. The business has a fifty day moving average price of $222.21 and a 200-day moving average price of $222.31.
Boeing (NYSE:BA – Get Free Report) last announced its earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share for the quarter, missing the consensus estimate of ($0.34) by ($0.42). Boeing had a negative return on equity of 346.82% and a net margin of 2.41%.The business had revenue of $24.56 billion for the quarter, compared to analysts’ expectations of $24.26 billion. During the same quarter last year, the firm earned ($1.24) earnings per share. The firm’s quarterly revenue was up 8.0% compared to the same quarter last year. Equities research analysts forecast that The Boeing Company will post -0.87 EPS for the current fiscal year. Analyst Ratings Changes A number of equities research analysts recently weighed in on the company. UBS Group initiated coverage on Boeing in a research note on Tuesday, August 11th. They set a “buy” rating for the company. Morgan Stanley boosted their target price on shares of Boeing from $245.00 to $250.00 and gave the stock an “equal weight” rating in a report on Thursday, April 23rd. Royal Bank Of Canada decreased their price target on shares of Boeing from $275.00 to $265.00 and set an “outperform” rating for the company in a research report on Wednesday, July 29th. Weiss Ratings restated a “sell (d+)” rating on shares of Boeing in a report on Tuesday, July 21st. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Boeing from $270.00 to $290.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $272.58.
Read Our Latest Stock Report on BA
Key Boeing News Here are the key news stories impacting Boeing this week:
Positive Sentiment: The U.S. State Department approved a potential $4.5 billion sale of KC-46A aerial refueling tankers to Qatar. The deal would support Boeing’s defense backlog and international sales, although it remains subject to final agreements and congressional review. US approves potential $4.5B sale of Boeing KC-46A tankers to Qatar Positive Sentiment: Boeing is progressing repairs and interior work on the next Air Force One aircraft, and it recently received a contract worth roughly $75 million for Air Force One parts. These developments provide defense and government-services revenue, though schedule pressure remains. Boeing advances Air Force One repairs Neutral Sentiment: Boeing’s partnership with Archer Aviation involves transferring Boeing-owned businesses—including Wisk Aero, Insitu and SkyGrid—in exchange for a strategic equity stake in Archer. The transaction could monetize noncore assets and preserve exposure to future aviation technology, but its near-term financial effect on BA is unclear. Archer Aviation bets big on becoming more than an air taxi company Negative Sentiment: The largest near-term overhang is uncertainty surrounding a contract vote by approximately 17,000 SPEEA engineers and technical workers. Rejection could lead to strike authorization after contracts expire on October 6, potentially disrupting Boeing’s recovery, certification work and production ramp. Boeing slides as labor vote uncertainty appears to outweigh recent operational progress Negative Sentiment: Air Force One repair work faces potential schedule threats related to windows and interior installation, reinforcing investor concerns about Boeing’s ability to execute complex programs on time and control costs. Negative Sentiment: Boeing’s $1.5 billion private bond financing for United Launch Alliance highlights continued capital needs and leverage concerns. With elevated debt and historically weak profitability, additional borrowing may weigh on sentiment despite supporting liquidity. A $1.5 Billion Deal: Why Boeing and Lockheed Stocks Are in Focus About Boeing (Free Report)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
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Index Dow Jones -1,32 % na 52759,21 b. S&P 500 -0,87 % na 7641,16 b. Nasdaq Composite -1 % na 26067,17 b.
Americké indexy se ponořily do červených čísel. Na trhu přetrvává obava ohledně výnosů státních dluhopisů a rychle rostoucího zadlužování veřejného sektoru. Nejvyšší ztrát zaznamenal index Dow Jones, kde zařazené Blue chipové akcie odepisují 1,32 %. Téměř desetinu po zveřejnění výhledu odepisuje maloobchodní řetězec Walmart. Další klesající společností je Boeing, který dnes uzavřel níže o 3,2 %. Z indexu se pouze pět titulů udrželo nad hladinou. S&P 500 podržel energetický sektor. V kosmetickém zisku uzavírají i reality.
Index S&P 500 -0,87 % na 7641,16 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +0,4 % Nezbytná spotřeba -1,9 % Reality +0,1 % Zdravotní péče -1,9 % Základní materiály -0,1 % Zbytná spotřeba -1,8 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Nordson Corp (NDSN) +8,0 % Moderna (MRNA) -24 % Coinbase Global (COIN) +7,6 % Walmart (WMT) -9,2 % Deere (DE) +6,9 % Intuitive Surgical (ISRG) -5,8 % Lumentum Holdings (LITE) +6,2 % Crowdstrike Holdings (CRWD) -5,6 % Qnity Electronics (Q) +5,9 % Steel Dynamics (STLD) -5,2 %
Marek Kameništiak
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Good news is landing across the electric air-taxi group today, but the major eVTOL names are falling anyway. That’s a major indicator in this sector: the quality of the catalyst seems to have stopped setting the price.
Archer Aviation (NYSE:ACHR | ACHR Price Prediction) stock is falling 7% to $6.03 midday Thursday. EHang Holdings (NASDAQ:EH) shares are sliding 6% to $5.44, while Joby Aviation (NYSE:JOBY) stock is dropping 4% to $7.42.
Importantly, high oil prices are rattling investors today and Energy Select Sector SPDR Fund (NYSEARCA:XLE) shares are up 1% to $64.32. Capital is favoring assets producing cash flow now over companies whose earnings sit years out, and the air-taxi group is bearing the cost of that rotation.
Favorable News Is Hitting the Tape Archer Aviation disclosed on its August 10 second quarter call an agreement to acquire three Boeing (NYSE:BA)-owned businesses: Wisk Aero, Insitu, and SkyGrid. Management expects the deal to close by year end, with Insitu already profitable and generating more than $200 million in annual revenue across 35 countries. Archer ended the quarter with $1.6 billion in liquidity, giving it the balance sheet to integrate the assets without a fresh raise.
Joby Aviation has entered the fifth and final Show & Verify stage of the FAA type certification process. As of July 31, Joby had completed 20% of its fifth-stage work and the FAA had finished 10% of its corresponding labor. EHang Holdings announced Thursday a strategic cooperation framework agreement with China Construction Sixth Engineering Bureau covering low-altitude infrastructure, and the first project under it, a cross-sea corridor in Lingao, Hainan, has broken ground.
Concrete Deal, Framework Agreement, Same Reaction Here is the sharpest observation available. Archer Aviation carries a market cap of $4.64 billion and is buying revenue that already exists, in the form of a profitable defense-drone unit generating more than $200 million in annual sales. EHang Holdings carries a market cap of $305.88 million and announced an agreement of intent to build infrastructure that has not yet been built.
Those two developments sit at opposite ends of the concreteness scale. One is a signed acquisition of a cash-generative business. The other is a memorandum with a state-owned construction group.
The gap in scale between the two names makes the shared reaction sharper. Archer Aviation is materially larger by market capitalization, and it also has the more concrete catalyst on the tape. The market is treating both prints as equivalent noise.
Archer Aviation stock is falling harder anyway. That’s what a tape looks like when catalysts aren’t the input driving prices. It also lines up with a year-to-date backdrop where Archer Aviation shares are down 14%, Joby Aviation shares are down 42%, and EHang Holdings shares are down 56% through Wednesday’s close.
The read-through is that concreteness is not currently rewarded. If it were, Archer Aviation’s Boeing-linked transaction, with a profitable business attached and a stated year-end close, would draw a bid rather than a mid-single-digit decline. It isn’t, and that’s the story of the session.
Cash Flow Today Is Beating Cash Flow Tomorrow The framing sits in the fund tape. XLE shares are up 44% year to date through Wednesday’s close, holding mature energy producers, refiners, and midstream operators. This isn’t a leveraged fund, though it does concentrate exposure in a single sector.
Rotation into producers of cash today, and out of companies whose commercial revenue models sit years out, does not care what an electric-air-mobility company announced this morning. That mechanism is turning a run of favorable disclosures into a group-wide down day for Archer Aviation, Joby Aviation, and EHang Holdings.
The scoreboard on the session is straightforward. XLE constituents, led by Exxon Mobil and Chevron, produce cash now, while the air-taxi group spends it in service of markets that are still forming. Until the balance flips, tape action will keep pricing that gap.
What This Session Signals When favorable company news draws no bid across an entire category, the group is trading on sentiment toward pre-revenue aviation rather than on company-specific progress. That signals category-wide sentiment rather than company-specific execution. It doesn’t resolve until rotation pressure eases or a name inside the group prints commercial revenue at scale.
The setup also raises a real risk for shareholders amid an elevated-oil-price backdrop. If the category tape stays disconnected from company-level news, individual milestones such as an FAA-stage advance or an infrastructure agreement can keep getting sold, and only a reported revenue result with model-able margins changes the pattern.
Investors sizing their positions in the air-taxi cohort should keep allocations small until buyers begin rewarding catalysts rather than fading them. Traders could look for signs that Archer Aviation stock finds a bid on the Boeing-linked deal specifically, since that arrangement is the closest catalyst to hard revenue in the group.
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Bell & Brown Wealth Advisors LLC purchased a new position in shares of The Boeing Company (NYSE:BA – Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 36,875 shares of the aircraft producer’s stock, valued at approximately $7,982,000. Boeing makes up 2.4% of Bell & Brown Wealth Advisors LLC’s portfolio, making the stock its 13th biggest holding.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Princeton Capital Management LLC increased its position in Boeing by 78.3% during the fourth quarter. Princeton Capital Management LLC now owns 12,249 shares of the aircraft producer’s stock worth $2,660,000 after buying an additional 5,381 shares in the last quarter. Rakuten Investment Management Inc. increased its holdings in Boeing by 502.3% in the 4th quarter. Rakuten Investment Management Inc. now owns 103,099 shares of the aircraft producer’s stock valued at $22,398,000 after purchasing an additional 85,982 shares in the last quarter. Louisiana State Employees Retirement System purchased a new position in Boeing in the 1st quarter worth approximately $7,961,000. Patriot Financial Group Insurance Agency LLC grew its holdings in Boeing by 103.8% during the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 11,240 shares of the aircraft producer’s stock valued at $2,237,000 after purchasing an additional 5,726 shares in the last quarter. Finally, Deutsche Bank AG increased its position in shares of Boeing by 47.5% during the fourth quarter. Deutsche Bank AG now owns 2,376,243 shares of the aircraft producer’s stock worth $515,930,000 after acquiring an additional 765,197 shares during the last quarter. Hedge funds and other institutional investors own 64.82% of the company’s stock.
Trending Headlines about Boeing Here are the key news stories impacting Boeing this week:
Positive Sentiment: Boeing is pursuing an internal turnaround under CEO Kelly Ortberg, emphasizing engineering discipline, production quality and long-term aircraft development rather than short-term Wall Street targets. The strategy could improve execution and restore customer and investor confidence, although results will take time. How Kelly Ortberg is rebuilding Boeing from the inside out Positive Sentiment: Wright-Patterson Air Force Base awarded Boeing a $75 million contract for Air Force One spare parts, providing incremental support for the company’s defense and government-services business. Boeing $75 million Air Force One parts contract Positive Sentiment: Boeing and Lockheed Martin’s United Launch Alliance reportedly completed a $1.5 billion private bond offering—three times the initial target—suggesting strong investor demand for ULA financing and continued interest in its space business. Boeing Q2 earnings context Wall Street Analyst Weigh In A number of equities research analysts have recently issued reports on the stock. Barclays lowered shares of Boeing from an “equal weight” rating to an “underweight” rating in a research note on Tuesday, August 11th. Weiss Ratings restated a “sell (d+)” rating on shares of Boeing in a research report on Tuesday, July 21st. UBS Group began coverage on Boeing in a research note on Tuesday, August 11th. They set a “buy” rating for the company. Royal Bank Of Canada reduced their price target on Boeing from $275.00 to $265.00 and set an “outperform” rating for the company in a research report on Wednesday, July 29th. Finally, Tigress Financial increased their price target on shares of Boeing from $295.00 to $305.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Boeing has a consensus rating of “Moderate Buy” and a consensus price target of $272.58. View Our Latest Analysis on BA
Boeing Stock Down 0.6% BA opened at $221.79 on Thursday. The firm has a market cap of $175.30 billion, a price-to-earnings ratio of 96.01 and a beta of 1.21. The company has a debt-to-equity ratio of 6.77, a quick ratio of 0.33 and a current ratio of 1.14. The firm’s 50-day simple moving average is $222.33 and its 200-day simple moving average is $222.44. The Boeing Company has a twelve month low of $176.77 and a twelve month high of $254.35.
Boeing (NYSE:BA – Get Free Report) last announced its earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.42). The company had revenue of $24.56 billion for the quarter, compared to analyst estimates of $24.26 billion. Boeing had a negative return on equity of 346.82% and a net margin of 2.41%.Boeing’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same quarter in the previous year, the company posted ($1.24) earnings per share. Equities research analysts anticipate that The Boeing Company will post -0.87 EPS for the current fiscal year.
Boeing Profile (Free Report)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
See Also Five stocks we like better than Boeing Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding BA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Boeing Company (NYSE:BA – Free Report).
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