Company DCF analysis file
Boeing DCF Analysis
A Boeing DCF should explain aircraft deliveries and production funding before treating positive earnings as recovery. FY2025 reported operating income includes a large disposition gain, while cash after property investment remained negative. Transactions and recurring production need distinct valuation bridges.
Revenue, expenses and profit on one annual basis
Historical Boeing consolidated comparison, $ millions: FY2024 ended 2024-12-31 and FY2025 ended 2025-12-31. These annual periods are separate from the later interim observation below.
| Measure | FY2024 | FY2025 |
|---|---|---|
| Revenue | 66,517 | 89,463 |
| Cost of products: positive expense | 57,394 | 73,761 |
| Cost of services | 11,114 | 11,413 |
| General and administrative | 5,021 | 6,090 |
| Research and development, net | 3,812 | 3,615 |
| Income from operating investments | 71 | 25 |
| Disposition gain, net | 46 | 9,672 |
| Operating earnings/(loss) | -10,707 | 4,281 |
| Net earnings/(loss) | -11,829 | 2,238 |
Source: Annual financial statements. Annual values are reported unless a row is marked derived.
The disposition gain is a reported operating-statement item but does not represent recurring aircraft production. Removing it mechanically is not a complete normalized profit calculation: the disposed perimeter and acquired supplier operations also change the comparison. Cost of products includes program-accounting estimates rather than a simple cash expense for each accepted aircraft.
Product and service sales provide a revenue reconciliation
| Reported revenue, $ millions | FY2024 | FY2025 |
|---|---|---|
| Products | 53,227 | 75,356 |
| Services | 13,290 | 14,107 |
Source: Annual business disclosures and financial notes. Annual values are reported unless a row is marked derived.
A product delivery and a service contract can recognize revenue on different milestones. Use accepted deliveries and contract progress, not an even spread of backlog. Customer advances reduce the final amount still to be collected; counting the full selling price again at delivery would exaggerate cash.
Reconcile reported cash before forecasting investor cash
| Measure | FY2024 | FY2025 |
|---|---|---|
| Operating cash provided/(used) | -12,080 | 1,065 |
| Property payments: positive deduction | 2,230 | 2,942 |
| Cash after property payments: derived | -14,310 | -1,877 |
Source: Annual cash-flow statement and related notes. Annual values are reported unless a row is marked derived.
The 2025 cash bridge is 1,065 minus 2,942 = negative $1,877 million. The filing reverses disposition gains in the operating-cash reconciliation, while disposal proceeds enter investing cash. Neither the reported profit nor sale proceeds establish that recurring production funds its capital program.
The later interim period stays separate
| Observation | Period-specific evidence |
|---|---|
| Reported interim basis | Q2 2026 covers 2026-04-01 through 2026-06-30 and was released 2026-07-28. Revenue was $24,560 million in this quarter. |
| Interpretation boundary | The next Q3 release is after the cutoff. Disposition gains, production advances and aircraft delivery cash have different meanings; a smaller annual cash deficit does not demonstrate that every aircraft program has recovered. |
Source: official interim reporting. The dated quarter is not annualized here and is not added to either full-year column. Later reporting must be checked before refreshing the valuation date.
Turn the statements into a DCF operating case
Prepare delivery, production-inventory and advance-payment schedules by program. Translate recurring operating earnings into cash with operating taxes, noncash costs, investment and working capital, including the timing of previously recognized losses. Keep the Digital Aviation disposal, Spirit acquisition and consolidation eliminations separate. Reconcile pensions, debt and preferred-equity claims under the selected investor boundary before computing common-equity value.
| Driver | Evidence to carry into the forecast | Downside condition to test |
|---|---|---|
| Aircraft acceptance | Accepted deliveries and final receipts | Acceptance slips while labor and supplier bills remain due |
| Program cost | Cost-to-complete estimates and actual production cash | A charge is treated as the only future cash requirement |
| Customer funding | Deposits and progress payments by cohort | Weaker advances reduce funding before delivery sales fall |
Stress a delivery delay separately from a customer-payment delay. Show the resulting funding requirement through the forecast rather than forcing an immediate positive terminal cash margin. A smaller cash deficit is useful historical evidence, but it does not establish a completed operational turnaround or a share-price target.
Use the Boeing financial analysis for the broader operating context, the company forecast to state the operating assumptions, and the DCF calculator only after defining the investor cash stream. Keep the statement definitions, reporting dates and your own assumptions visible when comparing valuation cases.
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