Is Boeing Finally a Buy?


Boeing has transitioned from famous to an infamous in recent years due to the many headwinds the company has faced. From the unfortunate 737 Max crashes, to the most recent strikes, the company cannot seem to get it right; however their new CEO, Kelly Ortberg, was optimistic that the company will begin to recover in the second half of 2025. 

Boeing’s Public Image and Culture:

Apart from the numbers, Boeing must work on restoring trust amongst their consumers and their employees, but that’s impossible without a quick resolution to the strike. The company’s machinists are demanding higher pay, yet six weeks later, Boeing has yet to meet their demands. 17,000 employees have been laid off since the strike, which doesn’t exactly boost moral in the work culture. 

Boeing’s Cash Problem:

The company’s most recent earnings reflected a quarterly loss of $6.17 per share, their biggest quarterly loss since the pandemic. This recent report brings their total cash burn to $10B in 2024 so far, and the cash-burn is expected to continue for the next three quarters. This means profitability is still far from achievable, especially as their money losing defense contracts continue to weight on them too. 

The Optimistic Outlook:

Despite the challenges, Boeing’s new CEO is still hoping for a turnaround in about twelve months, which is great news for the company’s shareholders. With the company already so beaten down, a turnaround timeline may spark buyers’ interest. Often time, Wall Street begins to buy into a company on its path to a positive change or big event. Boeing is already on track to surpassing its pre-pandemic revenue, but has a big opportunity in improving their bottom line and free cash flow, as soon as they do that, the stock will be on a recovery track.