Boeing Q3 Earnings Call Highlights Cash Flow Goals and Ramp Risks

Boeing (BA) received a $499.76M contract modification for U.S. Army's AH-64 Apache program, with work continuing through 2031. Details on work locations and funding are to be determined. The contract covers engineering and technical support services.

Boeing forecasts the global freighter fleet will grow 67% to 4,010 aircraft by 2045, driven by 3.5% annual cargo traffic growth. The company expects 2,930 new and converted freighters, with Asia representing 60% of the market. Dedicated freighters will carry over half of global air cargo traffic by 2045, according to Boeing's 2026 World Air Cargo Forecast.

Boeing reported a record $745.4B backlog, with commercial orders covering 6,300 airplanes. However, production delays pushed stock down 15.5% to $168.18, a 52-week low. Q3 revenue was $24.2B with a net loss of $116M. CEO Ortberg expects production rate increases in 2027, but cash flow targets shifted to 2029. Defense revenue rose 15% to $7.9B.

Boeing (BA) shares hit a 52-week low, down 10.69%, after reporting a Q3 loss of $0.34 per share and revenue of $24.19B. Peers like LMT, GD, NOC, RTX showed better momentum. Energy stocks MPC, VLO, PSX, XOM, CVX fell over 7% amid Saudi-Iran talks and geopolitical tensions.

Boeing (BA) forecasts global air cargo traffic to double by 2045, increasing the freighter fleet to 4,010 aircraft. The company expects 2,930 new and converted freighters needed, driven by e-commerce and Asia's trade growth. Shares rose 0.20% in premarket trading.

TD Cowen reaffirmed a Buy rating and $210 price target for Boeing, implying a 24.9% upside from the Oct 27 close. The firm cited Boeing's revised free cash flow outlook, expecting $10 billion by 2029, and optimistic production forecasts for the 737 MAX and 787 aircraft.