CLAIM #9266 · The Boeing Company (BA) · 2024Q4 earnings call · Jan 28, 2025 · due Dec 31, 2027
“In terms of 2026, when it goes into service, keep in mind the initial airplanes are going to be changing corp airplanes, which are going to be, you know not high-cal cash flow airplanes. But once you get through those and you get out of 2026 and into 2027, you are really going to start to generate pre-cash flows, and that's going to accelerate as deliveries accelerate.”
Brian West · CFO
How to check this claim
Look at: 777X program free cash flow generation (directional trend), as discussed in management commentary
It came true if: 2027 777X-related free cash flow contribution is positive and higher than 2026 level, per company commentary/disclosure
Where: Management commentary on earnings calls (2026 and 2027) and company cash flow disclosures/10-K
In context
“and then I'll ask Brian to do the liquidation. So actually, the first delivery, 777X delivery is also to Lufthansa, which is what I just mentioned. We have had seat and continue to have seat challenges. So I guess the good news, bad news is we've had seat challenges, but we do know what those challenges are for Lufthansa deliveries. Now, 777X interior in general is a more complex interior, but that's baked into our overall certification program for the aircraft. So we got time to go work the seat certification issues, and we've learned from our 787 what those issues are. So I think we'll be able to manage that for the initial deliveries. A - Brian West: And Scott, in terms of cash flows, as is typical on our new program, heavy cash usage the year before EIS, which is going to be for 2025. In terms of 2026, when it goes into service, keep in mind the initial airplanes are going to be changing corp airplanes, which are going to be, you know not high-cal cash flow airplanes. But once you get through those and you get out of 2026 and into 2027, you are really going to start to generate pre-cash flows, and that's going to accelerate as deliveries accelerate. So we're going to be set up very nicely once we get through EIS. Scott Deuschle: Great. Thank you. Operator: Thank you. The next question is from Seth Seifman from JPMorgan. Please go ahead. Seth Seifman: Thanks very much and good morning. A - Kelly Ortberg: Good morning Seth. Seth Seifman: I guess I wanted to follow-up on maybe two other items as we think about the cash flow this year. You talked about winding down the shadow factories, but both of them, I guess, that was something that in the past we've talked about as a key enabler of enhanced profitability. How do we think about factoring that into the cash flow improvement that we're seeing this year? And then also the financial implications and cash flow implications of spirit integration in the second half. Kelly Ortberg: Yeah, su”
Verify independently
SEC filings for BA ↗ · Claim quote is verbatim from the 2024Q4 earnings call.