BA · Earnings call · 2026Q3T · Full report
Capital Expenditure Outlook
BOEING CO · 2026-10-27 · Importance 75 · Surprise 48 · From source text
Boeing expects approximately $5 billion of CapEx in 2027, about $1 billion above 2026, including investment associated with recent BDS awards. Management expects CapEx of approximately $4 billion in each of 2028 and 2029. It characterized normalized future CapEx as 3%–4% of revenue, above the historical level of roughly 2%. The 2027 free-cash-flow outlook also includes additional CapEx for F/A-XX development.
Key facts
- Boeing's 2027 free cash flow growth is expected to be partially offset by around $1 billion of increased capital expenditure, including growth associated with recent BDS awards.
- Boeing expects 2027 capital expenditure of about $5 billion, and about $4 billion in each of 2028 and 2029.
- Boeing expects normalized capital expenditure to be 3% to 4% of revenue, higher than the prior level of 2% or less.
- Boeing's 2027 cash plan assumes capital expenditure of $5 billion, about $1 billion higher than 2026.
- Boeing said prospective new-airplane investment would be primarily R&D and technology development, with no significant investments expected.
- Boeing's 2027 free cash flow target includes additional capital expenditure to support F/A-XX development.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | committed | — | Boeing expects 2027 capital expenditure of about $5 billion, and about $4 billion in each of 2028 and 2029. |
| cash | negative | probable | — | Boeing expects normalized capital expenditure to be 3% to 4% of revenue, higher than the prior level of 2% or less. |
| cash | negative | committed | — | Boeing's 2027 cash plan assumes capital expenditure of $5 billion, about $1 billion higher than 2026. |