Boeing Faces Reckoning as Safety Scrutiny Hits $715 Billion Backlog
Boeing's shares fell 2.5% to $225.95 after the U.S. Army grounded its Apache helicopters, and a new Netflix documentary is set to revive scrutiny of the company's safety culture.
The documentary, 'Freefall: A Reckoning for Boeing,' follows director Rory Kennedy's previous film on the subject in 2022, and she said whistleblower John Barnett's death 'compelled' her to revisit the topic. The film's release coincides with Boeing's massive $715 billion backlog, which it must convert into aircraft and cash.
Boeing's quarterly results showed an increase in revenue and a narrowing of its net loss, but free cash flow remains a concern. The company produced $631 million in free cash flow in the second quarter, but the first half's negative figure is still a significant burden.
The company needs to produce around $2.8 billion in the second half to meet its annual guidance of $1 billion to $3 billion in free cash flow. July deliveries were also disappointing, with Boeing shipping 53 planes, down from 64 in June and trailing Airbus's 67 deliveries by 21%.
Analysts are mixed on Boeing's prospects, with a Moderate Buy rating from MarketBeat but five downgrades compared to two upgrades over the past 90 days. The average price target is $272.58, implying a possible 20.35% gain from the current price.