Morningstar

Boeing Earnings: Accelerating 737 and 787 Deliveries Offset 777X Charge; Shares 13% Undervalued

We think Boeing stock is fairly valued.

The logo for Boeing appears on a screen above a trading post on the floor of the New York Stock Exchange
Richard Drew
Securities in This Article
Boeing Co
(BA)

Key Morningstar Metrics for Boeing

What We Thought of Boeing’s Earnings

Boeing BA delivered 121 737 MAX and 24 787 jets in the third quarter, a brisk increase of 31.5% and 71%, respectively, since the same period in 2024. The company also recorded a $4.9 billion charge against future 777X profits due to another delay in getting the new plane’s FAA certification.

    Why it matters: We estimate that half of Boeing’s enterprise value derives from its 737 product line. Increasing the rate at which the company can make and deliver these jets is the single-biggest driver of near- and long-term profitability and cash flow, and Boeing received Federal Aviation Administration approval to do so in October.

    • Based on recent performance, we believe Boeing is on pace to exceed our previous estimates for 2025 financial results in the 737 and 787 business lines, as well as its defense and global services segments.
    • Our forecast for 2025 deliveries of 737s (including shipping previously built ones from inventory) is 66 more planes than the company’s stated guidance of 400, and we estimate the company may deliver 8 more 787s than its goal of 80. If the end result lies somewhere in between, it will still be a positive development on the company’s turnaround trajectory.

    The bottom line: Offsetting the larger 777X charge than we expected, Boeing’s other businesses are trending to outperform our previous forecast, and our fair value estimate for wide-moat Boeing remains $246 per share. The shares have given up some ground lately and trade about 13% below our updated fair value estimate.

      Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

      The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

      Sponsor Center