Boeing Company (BA.US) is recovering: Q4 revenue and cash flow exceed expectations, annual delivery volume reaches a 7-year high, the "Trump bonus" brings a record backlog of orders.

Boeing Company (BA.US) achieved positive cash flow for the second consecutive quarter and reported a significant increase in sales for the last three months of 2025. This American aircraft manufacturer continues to recover and benefit from a surge in orders. The fourth quarter free cash flow was $375 million, higher than analysts' expectations, with revenue increasing by 56.8% year-over-year to $23.95 billion, also above expectations. Boeing Company CEO Kelly Ortberg stated in a letter to employees on Tuesday, "We are making good progress at the start of the new year, with many reasons to be optimistic. As progress comes, so do expectations, and our customers and stakeholders have higher expectations for us this year." Under Ortberg's leadership, Boeing Company is recovering from a five-year operational and quality crisis. The company is increasing production of the 737 and 787 Dreamliner jets and saw nearly three times the growth in aircraft deliveries in the last quarter of last year. With Boeing Company customers boosting relationships with the White House and President Trump by purchasing aircraft, the company's backlog orders have soared to a record $682 billion. The Virginia-based manufacturer announced that adjusted earnings per share for the fourth quarter were $9.92, higher than expected and the highest quarterly level in over a decade. Profit growth was mainly driven by the $9.6 billion in revenue from the sale of Boeing Company's digital aviation subsidiary, Jeppesen, last year. Boeing Company stated that the acquisition of digital aviation solutions in November increased earnings per share by $11.83 for the quarter. However, data shows that excluding this revenue, Boeing Company's loss per share was more severe than analysts' expectations of a loss of $0.46 per share. In the fourth quarter, the monthly production rate for the 737 program was increased to 42 aircraft, while the 787 program production rate was increased to 8 aircraft. Boeing Company stated they will continue to aim for stability at this production level. In the fourth quarter, Boeing Company received net orders for 336 aircraft and delivered 160 aircraft, with over 6,100 aircraft in backlog orders totaling over $500 billion. Boeing Company delivered 600 aircraft to customers last year, nearly double the delivery volume in 2024, and the highest delivery year since 2018. Deliveries are crucial for aircraft manufacturers as customers pay for most of the aircraft price upon receiving the aircraft. According to Street Account, the company's commercial aircraft revenue exceeded Wall Street expectations at $11.38 billion, higher than the expected $10.72 billion. This represents an almost 140% increase from the same period last year. Defense sector revenue increased by 37% year-over-year to $7.42 billion. Airbus, Boeing Company's competitor, still delivered more aircraft than Boeing Company last year, with 793 aircraft delivered, although this total is lower than the record 863 aircraft delivered by the European manufacturer in 2019. However, Boeing Company surpassed Airbus in net orders in 2025, with 1,173 aircraft compared to Airbus's 889 net orders. Airlines are looking towards the 2030s, locking in delivery slots as they plan for growth and the replacement of older, less fuel-efficient aircraft. In recent weeks, Boeing Company announced Alaska Air Group, Inc. and Delta Air Lines, Inc. as customers for its aircraft deliveries in the next decade. Boeing Company still faces challenges. Investors are eager to know the most realistic delivery pace from the company's management this year. The manufacturer still needs approval from the Federal Aviation Administration (FAA) to increase the monthly production of the Max model to over 42 aircraft. This requirement was proposed by the FAA after a near-disastrous mid-air panel explosion in January 2024. This year is crucial for Ortberg to transform Boeing Company into a stable-performing enterprise, but the financial reports show that there is still much work to be done. While the operating losses in the defense, space, and security sector narrowed from $2.27 billion last year to $507 million, the KC-46 aerial refueling project in the sector experienced cost overruns again. Boeing Company also faces other challenges, such as the need to certify three commercial jet models that have experienced lengthy delays. Investors are seeking a clearer timeline for the certification of the 737 Max 7 and Max 10, as well as the 777X, which will be the largest wide-body jet in the Boeing Company product line. They also want updates on the latest developments in Boeing Company's defense business, including delays in projects like two 747 aircraft that will serve as the next generation Air Force One. Additionally, the company is working to integrate its former major subcontractor, Spirit AeroSystems Holdings Inc., acquired at the end of last year. Ortberg may also face more labor disputes in October when the union contract representing 16,000 engineers and technical workers in the Seattle area expires. As aircraft manufacturers and their suppliers continue to recover from parts shortages and labor shortages after the pandemic, Boeing Company and Airbus' jet delivery volumes are still 20% to 30% lower than the peak in the late 2010s. "Although production has increased, it has not exceeded expectations, but meeting expectations at this point is a significant achievement," analysts Nick Cunningham and Sash Tusa of Agency Partners said in a report released to clients on January 26th, evaluating Boeing Company.