**Bullish Points:**
1. **Revenue Growth:** Boeing reported a substantial increase in revenues for the fiscal year ended December 31, 2025, reaching $89,463 million, up from $66,517 million in 2024. This indicates strong sales performance across its segments.
2. **Net Earnings:** The company achieved net earnings attributable to Boeing shareholders of $2,235 million in 2025, a significant turnaround from a net loss of $11,817 million in 2024, showcasing improved profitability.
3. **Commercial Airplanes Segment:** Revenues in this segment increased significantly to $41,494 million in 2025 from $22,861 million in 2024, driven by higher deliveries, indicating robust demand for commercial aircraft.
4. **Defense, Space & Security Segment:** This segment reported increased revenues of $27,234 million in 2025, up from $23,918 million in 2024, due to lower net unfavorable cumulative contract catch-up adjustments and higher volume.
5. **Global Services Segment:** Revenues rose to $20,923 million in 2025 from $19,954 million in 2024, primarily due to higher government and commercial services revenue, reflecting strong service demand.
6. **Acquisition of Spirit AeroSystems Holdings, Inc.:** Completed in December 2025, this acquisition is expected to align commercial production systems and improve safety and quality, potentially enhancing operational efficiency.
7. **Divestiture Gains:** The divestiture of portions of its Digital Aviation Solutions business resulted in a gain of $9,566 million, contributing positively to financial results.
8. **Production Rate Increase:** The 737 program's production rate increased to 42 per month in the fourth quarter of 2025, with plans to further increase to 47 per month in 2026, indicating strong production capabilities.
9. **Backlog:** Boeing's total backlog at December 31, 2025, was $682,207 million, with approximately 13% expected to be converted to revenue through 2026, providing future revenue visibility.
**Bearish Points:**
1. **777X Program Losses:** The program recognized additional reach-forward losses of $4.9 billion in 2025 due to production challenges, certification and delivery delays, and higher estimated labor and supplier costs, indicating ongoing difficulties.
2. **KC-46A Tanker Program Losses:** A reach-forward loss of $714 million was recorded in 2025, primarily due to higher estimated manufacturing and engineering costs, impacting profitability.
3. **Supply Chain Disruptions:** The company experienced significant supply chain disruptions and constraints, labor instability, and inflationary pressures, affecting overall productivity and financial performance.
4. **737 Program Uncertainty:** The production rate schedule remains uncertain, influenced by oversight from the Federal Aviation Administration (FAA), impacting forecasted costs and revenue.
5. **Raw Material and Cost Challenges:** Certification and production challenges for the 777X program have increased risks of material reach-forward losses due to changes in cost estimates and customer considerations.
6. **Audit Findings:** Auditors highlighted significant judgment and complexity in estimating costs and revenues for the 777X and 737 programs, requiring specialized industry expertise, indicating potential financial reporting risks.
**Summary:**
Boeing's financial report for 2025 reflects a strong recovery in revenue and profitability, driven by increased deliveries and demand across its segments. The acquisition of Spirit AeroSystems Holdings, Inc. and divestiture gains further bolster its financial position. However, challenges remain, particularly with the 777X and KC-46A Tanker programs, which have incurred significant losses due to production and certification delays. Supply chain disruptions and cost uncertainties continue to pose risks. Overall, while Boeing shows promising growth and operational improvements, it must address ongoing program-specific challenges to sustain its positive trajectory.
For more information, you can read the original text of Boeing(BA)'s financial report .
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