CLAIM #9269 · The Boeing Company (BA) · 2024Q4 earnings call · Jan 28, 2025 · due Dec 31, 2026
“I would say that over time, the benefit you're going to start to see is a margin improvement at BCA, because you don't have these two very expensive shadow factories up and running anymore. They'll be done. So that'll be something that will be 2026 and beyond.”
Brian West · CFO
How to check this claim
Look at: BCA (Boeing Commercial Airplanes) segment operating margin, annual
It came true if: Full-year 2026 BCA operating margin higher than full-year 2025 reported BCA operating margin
Where: Company segment financial disclosures (10-K / Q4 earnings release, BCA segment results)
In context
“rt of this year, that work will be done. Now we won't deliver all the airplanes this year, because we've got some customer fleet planning things we need to fit in with, so that'll bleed over into next year. But the factory itself and the labor associated with that is going to be over the early part of this year. And labor has already started to move towards other first run production. On the 737 equally, Moses Lake, we've begun to take labor and move it from Moses Lake into Renton. We expect to shut that shadow factory down by mid-year. And then the corresponding deliveries will tail off towards the end of this year. So it's been a long journey. We look forward to that. It's all contemplated into the numbers I discussed and described in terms of how cash flows are going to move this year. I would say that over time, the benefit you're going to start to see is a margin improvement at BCA, because you don't have these two very expensive shadow factories up and running anymore. They'll be done. So that'll be something that will be 2026 and beyond. As it pertains to Spirit integration, as Kelly said, we're anxious. One, they are doing a great job. We're anxious to get it closed. We're not really describing what the financial impact on that is until we close. But the good news is that we're on pace. It remains strategically important and the team's holding up really nicely at a pivotal point as we ramp production. Seth Seifman: Thank you very much. Operator: Thank you. And the next question is from Noah Poponak from Goldman Sachs. Please go ahead. Noah Poponak : Hey, good morning, everyone. Kelly Ortberg: Morning, Noah. A - Brian West: Hi, Noah. Noah Poponak: What is it about the T-7A specifically that it keeps having so much cost creep? And I guess, Kelly, as you look at this portfolio, everything in defense is complex and I apprec”
Verify independently
SEC filings for BA ↗ · Claim quote is verbatim from the 2024Q4 earnings call.