Boeing on track to generate billions in cash next year

Boeing Co. expects to generate cash again in 2026, a significant reversal in the planemaker’s finances as it prepares to boost monthly production rates and pushes ahead with certification for the much-delayed 777X jetliner. The U.S. company expects positive free cash flow to reach the “low-single digits” next year, reversing the $2 billion cash burn seen for 2025, said Chief Financial Officer Jay Malave in his first solo presentation at an investor conference since being named to the post in August. [caption id="attachment_57293424" align="aligncenter" width="1920"] Boeing 737 Max fuselages at the company's manufacturing facility in Renton, Wash. (Courtesy/Bloomberg)[/caption] The assurances propelled Boeing’s shares, with the stock advancing 6.5%, the most since April. Malave’s comments provided the first detailed look at the planemaker’s cash projections for 2026, a year when Boeing’s comeback should gain momentum if jet deliveries keep rising while factories and the supply chain stabilize. Longer term, the company still expects eventually to reach the $10 billion cash-generation target outlined by the previous management team, Malave said. “There’s just no reason why we can’t get to that once we get to these higher rates on the aircraft,” Malave told a UBS conference. “I’m very comfortable saying that we can absolutely deliver $10 billion.” The CFO cited a steadily improving production cadence in Boeing’s factories, especially for its 737 Max and 787 Dreamliner jets, and the reduction of its inventory of undelivered aircraft as reasons for optimism, alongside improving profitability at its defense division and steady growth for its services operations. 777X delays Analysts expect Boeing to generate $2.46 billion in free cash flow next year, according to estimates compiled by Bloomberg. That would be an improvement from the cumulative $2.25 billion cash outflow recorded during the first nine months of this year. Still, analysts have pared their free cash flow predictions by more than half since mid-July, according to those estimates. That’s after Boeing’s revelation that it faced further delays on its 777X, pushing its largest in-production jet more than seven years behind schedule to 2027. Boeing took a $4.9 billion accounting charge in October, citing slower-than-expected progress in the flight-testing of the hulking jet. Malave said the delay would bring about $2 billion of “pressure” to next year’s cash generation. Read more about Boeing: Amazon picks Boeing for 767 conversion Boeing nears 200th 737-800BCF Boeing likely to record billions in charges over 777X debut delay Boeing completes DHL 777F order Boeing faces $3.1M in US fines for safety violations The company also expects to make a large payment to the U.S. Justice Department next year to resolve a case stemming from two fatal crashes of its 737 Max. Malave also cautioned that the largest 737 model, the Max 10, likely won’t be certified for commercial service until later in 2026, pushing some deliveries into 2027. Upcoming debt payments Boeing’s free cash flow hasn’t been positive on an annual basis since 2023. After years of turmoil, the planemaker is working to whittle down its debt load and invest in projects that will secure its future. Adding urgency to the turnaround is the fact that the company faces $8 billion in debt payments next year, and plans to quickly pay down another $3 billion in Spirit AeroSystems Holdings Inc. obligations once the acquisition of the supplier closes. Approval of the complex deal reuniting Boeing with its former subsidiary is in the latter stages, Malave said. Boeing lost a cumulative $39 billion during the first half of this decade, including $13.1 billion last year as it faced a crippling strike and a near-catastrophe that sparked federal investigations and a leadership shake-up. Cargo Facts LATAM 2026, the essential event for stakeholders in Latin America, will take place Feb. 10-12 at the Marquis Reforma in Mexico City. Learn more and register by Dec. 26 to take advantage of early-bird pricing. Cargo Facts Asia 2026, the indispensable event for Asia-Pacific stakeholders, will take place March 23-25 at the W Shanghai. Learn more and register by Feb. 6 to take advantage of early-bird pricing. The inaugural Cargo Facts Routes and Airport Conference will take place April 27-28 at the Marriott Al Forsan Abu Dhabi. Learn more and register by March 13 to take advantage of early-bird pricing.

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