Boeing Shares Fall Following Weakened Long-Term Free Cash Flow Guidance
Boeing (BA) shares experienced a significant decline on Tuesday, hitting a new 52-week low after the company issued disappointing long-term free cash flow (FCF) projections. While third-quarter revenue rose 4% year-over-year to $24.19 billion—exceeding analyst estimates—and FCF for the quarter beat expectations at $464 million, the forward-looking guidance overshadowed these results. The company's revised outlook suggests it will reach its $10 billion annual FCF target a year later than previously modeled by Wall Street. Specifically, Boeing projects 2027 FCF at $3 billion and 2028 FCF at $6 billion, both significantly below consensus estimates. This delay is attributed to increased capital expenditures required for next-generation Navy fighter jet contracts. Despite the stock's volatility, management noted a record $745 billion backlog and stable customer demand. Analysts suggest that while the guidance is underwhelming, the provision of concrete long-term targets may help reduce financial uncertainty and provide a more realistic recovery path for investors.