Boeing reported fourth-quarter results that sailed past Wall Street’s expectations Tuesday. Investors seized the opportunity to book gains after a strong start to the year had sent shares surging ahead of the print.
The aerospace giant posted earnings of $9.92 per share on revenue of $23.9 billion for the quarter ended December. This handily beat analyst estimates for a 44-cent loss on sales of $22.6 billion. The year-earlier period experienced a $5.90 per-share loss on revenue of $15.2 billion.
The headline figure, however, masked operational obstacles. The disclosed earnings included an $11.83-per-share windfall stemming from the sale of Boeing’s Digital Aviation Solutions unit. Removing this one-time gain, the company’s core result shows a quarterly loss of approximately $2 per share.
Shares fell 3.4% to $244.60 in early trading. This was while broader markets advanced, with the benchmark index up 0.2%. The decline followed a blistering rally that lifted the stock 16% year-to-date entering the week. It outpaced the wider market by 15 percentage points.
“Given the strong rally, we think shares likely open down,” Deutsche Bank’s Scott Deuschle wrote. Meanwhile, Vertical Research Partners’ Rob Stallard said Boeing is “heading in the right direction” and noted positive free cash flow.
The revenue jump stemmed from a sharp rise in deliveries: Boeing handed over 160 aircraft in the quarter, up from 57 a year earlier, which RBC analyst Ken Herbert called “encouraging.”
Production momentum remains the key metric for investors hungry for sustained profitability after years of losses. Boeing hasn’t posted an annual profit since 2018. That was the year before the second fatal crash involving the 737 MAX triggered a worldwide grounding from March 2019 through November 2020.
That drought officially ended, due in large part to the asset sale. Including proceeds from the divestiture, Boeing eked out $1.19 in earnings for 2025.
Investors will scrutinize management’s commentary on 2026 delivery targets during the conference call at 10:30 a.m. Eastern. “This could be the first time that the new management team has given a delivery guide and could be a positive for stock sentiment,” Herbert noted.
CEO Kelly Ortberg was installed in mid-2024 to orchestrate the turnaround. He faces the difficult task of setting credible targets without exaggerating. Formal guidance should signal improved command over production systems and supply chain coordination.
Analysts currently project roughly 690 deliveries for 2026, up from 600 this year, translating to approximately $2 per share in earnings and $2 billion in free cash flow. Whether Ortberg opts for conservative guidance and stands by market estimates remains to be seen.
Achieving higher output depends on ramping 737 MAX production. The Federal Aviation Administration recently raised the monthly cap from 38 to 42 aircraft, though Boeing ultimately intends to deliver 50 MAX jets per month.
Beyond production volumes, the company must secure certification for the stretched 737-10 variant to counter market-share erosion from the Airbus A321neo, while also progressing its wide-body 777X toward regulatory approval.
The path to Boeing’s ambitious $10 billion annual free cash flow target remains lengthy and fraught with execution risk. For now, modest progress appears sufficient to satisfy investors. They remain focused squarely on the company’s operational rehabilitation.
