The Boeing Company (BA): A Bull Case Theory

We came crossed a bullish thesis connected The Boeing Company connected Boudreau Capital Newsletter’s Substack by Nicolas Boudreau. In this article, we volition summarize the bulls’ thesis connected BA. The Boeing Company's stock was trading astatine $189.00 arsenic of November 28th. BA’s guardant P/E was 93.46 according to Yahoo Finance.

The Boeing Company, unneurotic with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercialized jetliners, military aircraft, satellites, missile defense, quality abstraction formation and motorboat systems, and services worldwide. BA reported a crisp rebound successful commercial aircraft deliveries, reaching 160 units versus 116 past year, which helped thrust 30% gross maturation to $23.3 billion.

Profitability remained pressured by a $4.9 cardinal 777X complaint that pushed conception margins profoundly negative, though excluding this one-time item, commercialized margins improved to –4.1%, signaling operational progress. The halfway 737 MAX programme continues to regain momentum, with FAA support to assistance accumulation from 38 to 42 aircraft per month, mounting the signifier for a credible ramp to 52 per period by 2026.

Certification fixes for the MAX 7/10 variants look resolved, and Boeing already has 31 stored aircraft ready with minimal rework. The 787 level is performing well, operating at 7 per period and expected to scope 8 by year-end, supported by incremental capex astatine the Charleston facility. The 777X timeline was pushed to 2027, largely reflecting regulatory caution, but Boeing’s backlog of roughly 500 aircraft underscores beardown semipermanent request and a wide accumulation plan.

Beyond commercial, the defense division posted a 1.7% borderline connected $6.9 cardinal of revenue, with expectations for borderline enlargement arsenic bequest fixed-price contracts rotation off. Global Services remained a unchangeable nett motor with 17.5% margins and a $25 cardinal backlog. Free currency travel turned affirmative astatine $200 cardinal arsenic accumulation normalized, offsetting one-off DOJ payments tied to the MAX crisis.

Key catalysts see accretive divestitures similar Jeppesen, the pending Spirit AeroSystems acquisition, improving manufacturing prime nether caller leadership, and a multi-year reset that positions Boeing for borderline betterment and stronger escaped currency travel done 2026–2028. With a $636 cardinal backlog and rising planetary demand, Boeing appears poised for a sustained operational and fiscal turnaround, though risks remain around regulatory delays, ineligible settlements, and aircraft reliability.