Boeing Stresses Path to Steadier Cash Flow Amid Lingering Risks
Boeing Co. (BA) addressed lingering risks and outlined a steadier path for production, certification, and cash flow at Morgan Stanley's 14th Annual Laguna Conference.
The company kept its 2026 free cash flow guidance at $1 billion to $3 billion and said it still expects results near the $2 billion midpoint. Chief Financial Officer Jay Malave stated that Boeing's path to a normalized free cash flow of about $10 billion per year depends on higher production rates, better margins, and the fading of several cash-flow drags.
Boeing has made progress across its commercial aircraft programs, including certification, production stability, and rate increases. The 737 MAX 7 is certified and delivered to customers, while the 737 MAX 10 should be certified soon. However, supply chain bottlenecks, labor negotiations, and program charges still stand in the way of a full recovery.
Boeing's defense business remains under pressure but management believes the segment is becoming more disciplined and better positioned for future growth. The company expects to improve its commercial and defense portfolio mix through improved relationships with regulators, a stronger culture of accountability, and better program management.