CUSHMAN & WAKEFIELD LIMITED
| Revenue | $10.8B |
|---|---|
| Operating income | $477.3M |
| Net income | $40.1M |
| Free cash flow | $249.1M |
| Operating margin | 4.4% |
| Net margin | 0.4% |
| Return on equity | 2.0% |
| Period | TTM 2026-06-30 |
OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Operational momentum is improving, but cash generation and production stability remain unproven.
HOLD: Boeing’s recovery is progressing, with Q1 revenue up 18% to $19.5 billion, core loss narrowing to $0.49 per share, and 130 commercial deliveries; the $10.55 billion Digital Aviation Solutions sale should provide roughly $10 billion of cash proceeds. However, the investment case still hinges on unproven 737/787 rate increases, China delivery disruption that could affect roughly 50 aircraft and potentially more than $1 billion, tariffs, and continued defense-program execution.
- 737 Max Ramp
- 787 Production
- China Deliveries
- Tariffs
- Free Cash Flow
- F47 Fighter
Near term
737 production is in the low 30s per month, with Boeing targeting 38 per month over the next few months and a potential FAA-approved increase to 42 later this year.
787 production remains at five per month, with a ramp to seven expected in the coming months; seat-certification issues are expected to remain a delivery challenge through the rest of the year.
China customers may reject planned deliveries of approximately 50 aircraft in 2025, including 41 already built or in production; Boeing is evaluating remarketing and reassignment options.
Q2 free cash flow usage is expected to be roughly in line with Q1’s $2.3 billion, while management still expects positive free cash flow in the second half.
Tariff input costs were immaterial in Q1, but management estimates the net annual impact at less than $500 million; the estimate excludes potential broader retaliation beyond China.
Longer term
The backlog exceeds $0.5 trillion, with more than 5,600 aircraft and the 737 and 787 sold firmly into the next decade, supporting long-term demand if Boeing can execute.
Boeing’s stated commercial rate path is 737 production from 38 to 42, then 47 and 52 per month, with at least roughly six months of demonstrated stability between rate breaks and FAA review at each step.
BDS margin recovery toward historical high-single-digit levels depends on sustained improvement in fixed-price development programs, which represent roughly 15% of BDS revenue.
The F-47 award strengthens Boeing’s fighter franchise for decades, but contract structure and future low-rate initial production economics remain undisclosed.
BGS remains a high-quality structural asset, with Q1 operating margin of 18.6%, a $22 billion backlog, and capital-efficient service revenue.
Red flags
Management did not update the prior full-year free cash flow usage framework of $4 billion to $5 billion, citing continued uncertainty around production ramps, China, and tariffs.
The China exposure is described as manageable, but the potential cash impact could exceed $1 billion and the company has not quantified the discount, timing, or conversion cost required to remarket aircraft.
The 737 recovery is not complete: one rework KPI remains below threshold, the FAA must approve future rate increases, and management explicitly said it cannot yet claim victory.
Management’s responses on F-47 contract economics were limited to assurances that Boeing avoided undue fixed-price risk; pricing, inflation protection, and LRIP terms were not disclosed.
Defense performance improved, but Boeing still has significant execution risk in fixed-price development programs and acknowledged substantial remaining work on estimated-at-completion risks.
Tariff escalation or additional countries adopting China-like delivery restrictions could pressure both cash flow and production stability beyond the current plan.
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
Earnings transcripts
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Q2 2026 earnings call transcript
CUSHMAN & WAKEFIELD LIMITED
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CUSHMAN & WAKEFIELD LIMITED
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CUSHMAN & WAKEFIELD LIMITED
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CUSHMAN & WAKEFIELD LIMITED
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CUSHMAN & WAKEFIELD LIMITED
Press & signals
- Satelight
As downtown Seattle offices empty, city facing years of 'zombie' towers