Boeing Stock Declines Amid Slow Cash Generation

Boeing's stock has been declining over the past year despite a genuine recovery in aircraft deliveries. In the second quarter of 2026, Boeing provided more airplanes than any other quarter since 2018. However, the cash generated from this increase is still minimal compared to the company's forecast.

The company's free cash flow projection for 2026 is between $1 billion and $3 billion, which is significantly lower than its trailing revenue of $94.0 billion. Management highlights a figure of $10 billion in annual free cash flow, but this seems unlikely given the current performance.

One issue Boeing faces is the income generated per aircraft. The 737 and 787 programs are operating at reduced cash margins, slightly above breakeven. To reach rate 10 on the 787, engine deliveries must recover, which GE is optimistic about achieving by the end of 2026.