operating margin
2.5 pct
FY 2026
official guidance
BOEING
Last · NYSE$188.68+4.02 (+2.18%)live · yahoo · 1h ago
Market cap$149.02B789.8M sh
P/E · TTM68.1fwd 50.0 · eps 2.77
Beta—vs S&P 500
Div yield0.00%annual · TTM
52w range
$176.77$254.35
Volume4.7Msession
| Revenue | $94.0B |
|---|---|
| Operating income | $604.0M |
| Net income | $2.1B |
| Free cash flow | $-210.0M |
| Operating margin | 0.6% |
| Net margin | 2.2% |
| Return on equity | 34.3% |
| Period | TTM 2026-06-30 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Improving trajectory, but the call did not yet remove the major production, program-cost, or cash-conversion risks.
Hold: Boeing showed real operational improvement—Q2 revenue rose 8% to $24.6 billion, free cash flow was $631 million, deliveries reached 171 aircraft, and debt fell $1.3 billion sequentially—but earnings remained negative at a $0.76 core EPS loss and BCA margins were still depressed. The $1 billion-$3 billion 2026 free-cash-flow outlook depends on a strong second half, while a $280 million VC-25B charge, unresolved 787 engine and seat-certification issues, and rising supply-chain difficulty above 52 737s keep the recovery execution-dependent.
Themes
- Commercial Aircraft Ramp
- Free Cash Flow
- 737 Production
- 787 Engine Supply
- 777x Certification
- Defense Fixed Price Programs
Near term
Q3 free cash flow is expected to remain positive but only in the low hundreds of millions after the planned $700 million DOJ payment.
737 production is ramping toward 47 per month and the Everett line is beginning low-rate production; execution at 47 and the move toward 52 are key near-term validation points.
787 deliveries may remain lumpy through year-end because seat certifications are not complete, while GE engine recovery is required before Boeing can reach rate 10.
SPEEA negotiations ahead of the October contract expiration could become a disruption risk even though management is preparing contingency plans.
Longer term
The commercial recovery is highly leveraged to delivery growth, fixed-cost absorption, and the eventual shift toward better-priced backlog; management expects 737 margins to approximate 2018 levels and 787 margins to exceed them by decade-end.
BDS is expected to improve sequentially toward high-single-digit operating margins by the end of the decade, but that thesis relies on completing fixed-price development programs without further material cost growth.
The record $597 billion commercial backlog and more than 6,200 aircraft provide unusually strong demand visibility, but backlog value converts to cash only if Boeing can execute rate increases and customer commitments.
A future aircraft is the main opportunity to improve Boeing's share of industry economics; management acknowledged that existing platform economics are structurally constrained and suggested greater vertical integration or new supplier partnerships may be needed.
Red flags
The $631 million Q2 free-cash-flow result benefited from favorable receipt timing, and management declined to provide specific 2027 cash-flow timing or a detailed bridge beyond broad delivery and margin assumptions.
BCA program cash margins remain only slightly above breakeven because of pricing concessions and delivery penalties, limiting the immediate earnings benefit from higher production.
Management said 787 seat certifications remain an issue for the balance of the year and that engine deliveries fell behind first-half requirements, directly challenging the rate-10 plan.
The 777X certification schedule remains difficult to assess: only 55% of certification flight testing was complete, TIA scope is still moving, and change-incorporation aircraft require differing levels of rework.
The VC-25B reach-forward loss and $280 million charge show that fixed-price defense-program risk has not been eliminated; Starliner still carries customer-schedule uncertainty.
Forward outlook
operating margin
—
FY 2029
management target
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-01-30
- Cash Flow Recovery
- 737 Production Ramp
- 777x Losses
- Spirit Aerosystems Acquisition
- Quality And Certification
- Labor Disruption
- Defense Budget Exposure
Red flags
- Boeing’s $2.2 billion 2025 net earnings included a large divestiture gain, making headline profitability a weak indicator of recurring earnings power.
- The 777X generated a further $4.9 billion reach-forward loss in 2025; total disclosed losses across 2025 and 2024 were $8.4 billion.
- Operating cash flow was only $1.1 billion despite a major year-over-year improvement, while cash and restricted cash declined $2.2 billion to $11.7 billion.
- Accrued forward-loss recognition remained $6.7 billion at year-end, and product warranty liabilities increased to $2.8 billion from $2.1 billion.
- Boeing recorded a $737 million change in product-warranty estimates in 2025, indicating continuing quality and support-cost exposure.
- The company’s 2025 production was disrupted by a 101-day IAM District 837 strike; a prior IAM District 751 strike lasted 53 days and halted production of most commercial aircraft.
- Spirit represented approximately 9% of Boeing’s total assets at year-end, while Boeing had not yet assessed Spirit’s internal controls over financial reporting.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
−$0.19
Est. revenue
24.8B
Earnings transcripts
Press & signals
- Satelight
Pentagon awards Boeing $20bn contract for Navy stealth fighter jet
- Satelight
Google ending ChromeOS support two years early
- Satelight
Boeing "incredibly excited" to serve as nation's only astronaut transportation
The rest of this company's wire — with summaries and source links — is part of Pro.
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