Wolfe Research has maintained an Outperform rating on Boeing and left its price target unchanged at $260.00 after the aerospace manufacturer released fourth-quarter financial results.
The company posted $375 million of free cash flow in the quarter, which brought total cash use for 2025 to just under $1.9 billion - modestly better than Boeing’s prior guidance of about $2 billion. Reported sales were $23.9 billion, roughly 5% above consensus expectations, and backlog expanded to $682 billion, marking a 31% increase from a year earlier and 7% sequential growth.
Segment results and program developments
Within Commercial Airplanes (BCA), Boeing recorded a $632 million operating loss. Wolfe Research attributes that result to the impact of the Spirit AeroSystems arrangement. During the quarter, Boeing raised 737 production to 42 aircraft per month, and the 787 program began a transition to eight aircraft per month. The company also reported certification progress on the 737-10 and the 777X programs.
Defense, Space & Security (BDS) reported a $600 million charge tied to production and supply-chain costs associated with the Tanker program, producing the segment’s first operating loss of 2025. Separately, Boeing realized a $9.6 billion gain from the sale of Jeppesen during the quarter, a one-time inflow that contributed to core earnings per share of $9.92.
Guidance and analyst expectations
Although the company’s release did not include fresh formal guidance, Boeing management had previously signaled expectations for low single-digit positive free cash flow in 2026. Wolfe Research expects that outlook to be reiterated on the company’s earnings call.
Other industry developments cited alongside the report
- Dubai Aerospace Enterprise’s chief executive said Boeing has made "enormous progress" while noting that issues persist with engine manufacturers and smaller suppliers.
- The Federal Aviation Administration stated it is not obstructing certification for the 737 MAX 7 and 10, and emphasized that certification responsibility lies with Boeing.
- UBS continued to carry a Buy rating and a $275 price target on Boeing, pointing to favorable trends in 787 Dreamliner production.
- Dreamlifter flights carrying 787 components increased 69% year over year, supporting production momentum.
- Ethiopian Airlines placed an order for nine Boeing 787-9 Dreamliners and completed the purchase of 11 Boeing 737 MAX jets, totaling 20 new aircraft aimed at expanding its international network.
Outlook
Overall, the quarter combined operational headwinds and one-time items with encouraging cash flow and production signals. Wolfe Research’s maintained rating reflects that balance: program-related charges and supply constraints weighed on segment results, while stronger-than-expected sales, backlog growth and the Jeppesen sale supported core earnings and analyst confidence.