Boeing’s first quarter results drew a strong positive market response, with management attributing performance improvements to operational execution and progress in stabilizing its production system. CEO Kelly Ortberg highlighted reductions in traveled work and rework hours on the 737 line, as well as better-than-expected airplane deliveries, which reduced cash outflows. Ortberg noted, “Almost every customer I talk with reports an improvement to the quality of the airplane.” The company also emphasized that recent changes to its quality and safety processes are gaining traction, particularly in the commercial aircraft division. While defense segment margin improvement and a major contract win for the F-47 fighter were called out, management continued to acknowledge ongoing challenges in the China market due to tariffs.

Is now the time to buy BA? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Boeing’s Q1 Earnings Call

• Doug Harned (Bernstein) asked about Boeing’s engagement with the U.S. government to resolve tariff issues. CEO Kelly Ortberg said management is in frequent contact with administration officials and is hopeful for a negotiated solution but cannot predict timing.

• Myles Walton (Wolf Research) inquired if full-year delivery targets remain intact given China’s situation. CFO Brian West responded that volume plans are unchanged, as strong operational performance in early 2025 should help offset China delivery shortfalls.

• Seth Seifman (JPMorgan) questioned the potential cost impact of tariffs and supplier pricing. Ortberg explained duty drawback mechanisms and ongoing supplier negotiations, while West estimated net annual tariff costs to be less than $500 million.

• Scott Deuschle (Deutsche Bank) asked about free cash flow cadence for 2025. West said the second half is expected to be positive, driven by production and delivery increases, but guidance will be revisited as China and tariff clarity emerges.

• Richard Safran (Seaport Research Partners) asked about the scope and future of digital aviation divestitures. Ortberg confirmed Boeing retained access to key digital capabilities and is considering additional, smaller portfolio adjustments.

Catalysts in Upcoming Quarters

In the quarters ahead, our team will closely watch (1) Boeing’s progress in ramping up 737 and 787 production rates, (2) developments in U.S.-China relations and the company’s success in re-marketing aircraft originally intended for Chinese customers, and (3) further portfolio reshaping through additional divestitures or strategic investments. Execution in these areas will be key indicators of Boeing’s ability to meet its full-year objectives.

Boeing currently trades at $200.31, up from $162.46 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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