Boeing Stock Gains After CFO Projects Positive Free Cash Flow, Higher Deliveries Next Year

• If the gains hold, Boeing stock could see its best day since April.
• Boeing has not posted positive annual free cash flow since 2023.
• The firm also warned that the largest 737 model, the Max 10, likely would not be certified for commercial service until later in 2026, pushing some deliveries into 2027.

Boeing (BA) stock gained over 8% in early trading on Tuesday after the planemaker projected to generate free cash flow in 2026, and higher deliveries of its popular aircraft models.

According to a Bloomberg News report, citing Boeing Chief Financial Officer Jay Malave, the planemaker expects positive free cash flow to reach the “low-single digits” next year, compared with the $2 billion in negative cash flows projected this year. If the gains hold, Boeing stock could see its best day since April.

What Else Did Boeing's CFO Say?

Boeing has not posted positive annual free cash flow since 2023. Malave, who took charge in August, reportedly said that in the longer run, the company still expects to achieve the $10 billion cash generation target highlighted by the previous management.

“There’s just no reason why we can’t get to that once we get to these higher rates on the aircraft,” Malave told a UBS conference. “I’m very comfortable saying that we can absolutely deliver $10 billion.”

He also reportedly cited steadily rising output at Boeing’s factories, especially for its 737 Max and 787 Dreamliner jets, and the reduction in its inventory of undelivered aircraft as reasons for optimism. Higher profitability in its defense division and steady growth in its services operations were some of the other factors.

However, Malave warned that the largest 737 model, the Max 10, likely would not be certified for commercial service until later in 2026, pushing some deliveries into 2027. The company also would pay a hefty amount next year to settle charges related to two earlier crashes of its bestselling 737 Max models in 2018 and 2019.

What Are Stocktwits Users Thinking?

Retail sentiment on Boeing stock on Stocktwits was in the ‘bullish’ territory, albeit with a higher score.

A Stocktwits user stated that the CFO was essentially saying FCF margins are about to explode next year. “Going much higher!” they wrote.

Boeing stock fell 6% in November, logging the third successive monthly decline. The recent declines followed the company's third-quarter loss, which was partially weighed down by delays in deliveries of its large-body 777X aircraft. The firm booked a $4.9 billion pre-tax charge due to the delay and now expects to bring its 777X aircraft to customers in 2027.

The planemaker’s shares have risen 13.3% this year, compared with 38% gains of the iShares US Aerospace & Defense ETF (ITA). However, Boeing sits on a backlog of over $600 billion and expects to deliver more than 5,900 commercial aircraft. It has also inked several contracts this year as various countries announced Boeing purchases to reduce their trade deficits with the U.S.

Also See: Global Economy Showing Resilience To Trump Tariffs: Report

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