Boeing guided for $3-5bn in free cash flows next year, higher than the $1.5-2bn that is expected this year. It noted that the ramping up of deliveries of jets is estimated to see its annual cash flow rise to about $10bn by 2025 or 2026. The news is a positive update on the company which has been mired by production and regulatory delays that have made it difficult for them to ramp up capacity to capitalize on booming travel demand. Colin Scarola, analyst at CFRA, said that while Boeing has developed a “bad” reputation for missing its targets, the latest outlook is “pretty conservative” and “achievable.” In its latest Q3 results, the plane manufacturer reported a net loss of $3.31bn vs. a loss of $132mn the year prior. Revenues stood at $15.96bn, up 4% YoY. The large losses were on account of its fixed-price defense development programs where it took a $2.8bn hit. The company which has accumulated debt since the pandemic saw its net debt at end-September stand at $57.2bn with cash balances at $14.3bn. Its consolidated debt during the same period last year was at $62.4bn with $20bn in cash balances.
Boeing’s bonds were trading slightly lower with its 3.25% 2025s down 0.3 points to 70 67, yielding 6.82%.
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