BA - Here's What Boeing's Latest Big News Means to Investors
2024-07-15 09:45:00 ET
Boeing (NYSE: BA) investors received some good news recently when the company released its delivery data for the first half of 2024. So what exactly was that news? And what could it all mean to an investment case for the stock? Let's dive in.
Sales of commercial airplanes -- particularly its narrow-body 737s -- are the most important driver of Boeing's medium-term financial aspirations. The relative importance of its commercial airplane segment can be seen clearly in the medium-term financial plan Boeing management laid out in November 2022. Back then, management forecast that the company's free cash flow (FCF) would hit $10 billion in 2025 or 2026.
On a segmental level, the Boeing commercial airplanes (BCA) division is expected to do the bulk of the heavy lifting, delivering $9 billion in operating cash flow, while Boeing global services (BGS) is expected to deliver $3 billion and Boeing defense, space & security (BDS) $2 billion. (In case you are wondering why the numbers don't add to $10 billion, management expects $2 billion in cash taxes and another $2 billion will go on capital spending.)
For further details see:
Here's What Boeing's Latest Big News Means to Investors