1/9/2024 0 Comments Rolling sky 11even if everything else goes wrong,” Epstein of Bank of America wrote in a note earlier this week questioning the company’s decision to emphasize the metric. Given that Boeing is still sitting on an abnormally high number of aircraft-270 finished 737 MAX planes and 115 787s worth roughly $23 billion-handing them over to customers to hit its free cash flow goal will be “easy. Together with Boeing’s defense division swinging back to positive cash flow as it works through costly problems with fixed-price government contracts, the company expects to generate roughly $10 billion a year in free cash flow by the 2025-26 time frame, enabling it to pay down debt, normalize the balance sheet and begin to return cash to shareholders again. West said he expects that to enable Boeing’s commercial airplanes division to return to being a “cash juggernaut,” generating $6 billion in free cash flow. Boeing's failure to launch a middle-market jet “could solidify its status as the number-2 in the global narrowbody market,” Ronald Epstein of Bank of America wrote in a research note, estimating that Boeing’s share could sink to 40%, potentially putting it at a cost disadvantage to Airbus.Ĭalhoun and CFO Brian West sought to provide Wall Street with a detailed forecast for the first time since before the grounding of the 737 MAX in 2019, elaborating on their declaration in their discussion of third-quarter earnings last week that they consider free cash flow to be the key metric for the company’s turnaround.īoeing expects to deliver the last of the 737 and 787 airliners that have been sitting in storage in 2025, removing the heavy financial drag of storing and refitting them. “Our development pipeline is full - it's absolutely full,” said Stan Deal, CEO of Boeing’s commercial airplane division. Without a new jet this decade, company executives were insistent that they would still be able to win a solid share of the market, with Airbus sold out through 2028 and airlines keen to refresh their fleets, and they said that Boeing engineers will be plenty busy bringing to market the smallest and largest variants of the 737 MAX, the -7 and -10, as well as the 777X and a variant of the 787 with higher payload and range.
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