Boeing (BA) +8.9% in early trading Tuesday, flying to the top of the S&P 500 leaderboard, after CFO Jay Malave said the company expects positive free cash flow in the “low single digits” next year, reversing the company’s $2 billion cash burn in 2025, in the first detailed look at the company’s cash projections for 2026.
The new CFO still expects Boeing (BA) will eventually reach the $10 billion cash generation target outlined by the previous management team, citing steadily improving production in its factories, especially for the 737 MAX and 787 Dreamliner jets, the reduction of inventory of undelivered aircraft, and an improving business at its defense and services operations; he also expects the 737-10 narrowbody jet to be certified later in the year.
Analysts expect Boeing (BA) to generate $2.46 billion in free cash flow in 2026, according to estimates compiled by Bloomberg, which would mark a turnaround from the cumulative $2.25 billion cash outflow recorded during this year’s first nine months.
Boeing’s (BA) free cash flow has not been positive on an annual basis since 2023, and the company has lost a cumulative $39 billion in the five years through 2024, including $13.1 billion last year.