BA · Earnings call · 2026Q3T · Full report
Free Cash Flow and Liquidity
BOEING CO · 2026-10-27 · Importance 42 · Surprise 24 · No source text
Boeing generated $464 million of free cash flow in the third quarter, an improvement year over year from better working capital, partly offset by approximately $700 million of Department of Justice settlement payments and planned capacity-expansion CapEx. Management targets approximately $2 billion of free cash flow in 2026, $3 billion in 2027, $6 billion in 2028, and $10 billion in 2029, with growth potential beyond that. The 2027 target includes approximately $1 billion more CapEx than 2026 and lower BCA order deposits; 2028–2029 growth is expected from higher deliveries, improving cash margins, reduced legacy cash drags, and positive 777X cash contribution. Cash and marketable securities ended the quarter at $20.7 billion, debt was $45.9 billion, and Boeing had $10 billion of undrawn revolving credit facilities.
Key facts
- Boeing expects approximately $2 billion of free cash flow in 2026, about $3 billion in 2027, about $6 billion in 2028, and $10 billion in 2029.
- Boeing expects to achieve its $10 billion free cash flow target in 2029 and sees significant growth potential beyond $10 billion.
- Boeing expects 777X to use significant cash in 2027, improve in 2028, and turn cash-flow positive in 2029.
- Approximately $700 million of Department of Justice settlement payments partially offset Boeing's third-quarter 2026 free cash flow.
- Boeing expects 737 and 787 deferred production balances to flatten in 2027, become sources of cash in 2028 and 2029, and provide significant cash contributions; 777X deferred production is expected to grow over the next few years.
- Boeing expects significant free cash flow growth beyond 2029, driven by continuing margin improvement and volume growth; management cited potential rates of 63 per month on the 737 and 14 per month on the 787 beyond 2029.
- Boeing's third-quarter 2026 cash and marketable securities were $20.7 billion, and debt was $45.9 billion, unchanged from the prior quarter.
- Boeing's 2027 free cash flow growth is expected to be driven by higher commercial deliveries, modestly improved 737 and 787 cash margins, continued BDS improvement, and continued BGS growth.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | committed | — | Boeing expects approximately $2 billion of free cash flow in 2026, about $3 billion in 2027, about $6 billion in 2028, and $10 billion in… |
| cash | positive | committed | — | Boeing expects approximately $2 billion of free cash flow in 2026, about $3 billion in 2027, about $6 billion in 2028, and $10 billion in… |
| cash | positive | committed | — | Boeing expects approximately $2 billion of free cash flow in 2026, about $3 billion in 2027, about $6 billion in 2028, and $10 billion in… |
| cash | positive | committed | — | Boeing expects approximately $2 billion of free cash flow in 2026, about $3 billion in 2027, about $6 billion in 2028, and $10 billion in… |
| cash | positive | contingent | — | Boeing expects to achieve its $10 billion free cash flow target in 2029 and sees significant growth potential beyond $10 billion. |
| cash | negative | realized | — | Approximately $700 million of Department of Justice settlement payments partially offset Boeing's third-quarter 2026 free cash flow. |
| cash | positive | probable | — | Boeing expects 737 and 787 deferred production balances to flatten in 2027, become sources of cash in 2028 and 2029, and provide… |
| assets | positive | probable | — | Boeing expects 737 and 787 deferred production balances to flatten in 2027, become sources of cash in 2028 and 2029, and provide… |
| cash | positive | probable | — | Boeing expects significant free cash flow growth beyond 2029, driven by continuing margin improvement and volume growth; management cited… |