Boeing's Free Cash Flow Turns Positive, Setting the Stage for Future Growth
After six quarters of declining performance and negative free cash flow due to production issues following an Alaska Airlines incident in early 2024, Boeing has stabilized its operations. By mid-2025, it had resolved supply chain bottlenecks and quality control problems, delivering more aircraft than at any time since 2018. Free cash flow turned positive again by Q3 2025 with $631 million generated in the most recent quarter. Boeing is now seeking to increase its production rate of 737 airliners from 42 to as many as 63 per month, which could lead to higher deliveries and cash inflows. Analysts project free cash flow will grow significantly over the next five years, reaching $15 billion annually by 2030. The company is also working on turning its Spirit Aerosystems subsidiary profitable after a costly acquisition that included debt and obligations. Despite these positive developments, Boeing must maintain focus on quality control to avoid disruptions from new aircraft variants currently in certification. If it succeeds, the stock appears undervalued based on future free cash flow projections.
Topics: aerospace industry free cash flow turnaround strategy