Boeing Co

Equity Research 28 July 2026 | 10:34PM EDT

Boeing Co. (BA) Production cadence improving, while new aircraft certs are closer; Buy

BA 12m Price Target: $277.00 Price: $221.56 Upside: 25.0% BUY Noah Poponak, CFA | Our view on the stock post 2Q26 earnings Goldman Sachs & Co. LLC

Boeing 2Q26 results were solid, with free cash flow above Connor Dessert | consensus, and commercial aircraft production rates moving higher Goldman Sachs & Co. LLC

YTD. The stock has been somewhat range bound despite long Nizar Mesani | awaited improvement in production and delivery rates, which we Goldman Sachs India SPL

attribute to the market waiting for more clarity on 777X progress towards certification given the disappointment it created last year in Key Data _____________________________________ the mid-term free cash trajectory. We think the latest developments Market cap: $176.1bn Enterprise value: $215.6bn on 777X are positive, and the range of timing outcomes is 3m ADTV: $1.4bn United States narrowing. Coupling that with major progress on product quality Americas Aerospace & Defense M&A Rank: 3 and production cadence on 737 and 787, working towards higher defense margins, and ongoing strength in services, makes us believe GS Forecast __________________________________ 12/25 12/26E 12/27E 12/28E achievement of normalized free cash is actually finally close. In the Revenue ($ mn) New 89,463.0 97,169.7 114,346.6 125,945.8

context of the more standard historical cyclical framework, demand Revenue ($ mn) Old EBITDA ($ mn) 89,463.0 6,234.0 96,680.5 4,521.0 114,524.5 8,437.5 126,129.2 12,445.4 is strong and supply is low, which is typically a favorable set-up for EBIT ($ mn) 4,281.0 2,132.0 5,967.5 9,945.4 EPS ($) New the stock. We remain Buy rated on BA. EPS ($) Old P/E (X) 68.1 NM 43.4 22.5 Dividend yield (%) 0.0 0.0 0.0 0.0 Key elements of the quarter Net debt/EBITDA (X) 6.9 7.8 3.2 2.1

2Q26 revenue of $24.56bn was above FactSet at $24.26bn. BCA 6/26 9/26E 12/26E 3/27E segment operating income of $(322)mn compared to our estimated EPS ($) (

$(452)mn. BDS margin of (0.2)% compared to our 3.2% estimate, GS Factor Profile ______________________________ Growth negatively impacted by a $(280)mn VC-25B charge, where the margin excluding the charge was 3.5%. 2Q26 free cash flow was Financial Returns

$631mn, ahead of our estimate of $(250)mn and consensus at Multiple

$(177)mn. The company began transitioning production to Integrated 47/month on 737 and activated low-rate initial production on the 737 North Line in July. BA reiterated expectations for both the Percentile 20th 40th 60th 80th 100th

737-7 and 737-10 to achieve certification in 2026, and initial BA relative to Americas Coverage deliveries scheduled for 2027. The 777X program has progressed to BA relative to Americas Aerospace & Defense

TIA Phase 4b of certification flight testing, and BA reiterated its Source: Company data, Goldman Sachs Research estimates. expectation for first delivery in 2027. Full-year 2026 free cash flow See disclosures for details.

guidance of $1-3bn was reiterated.

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Boeing Co. (BA) Balance Sheet ($ mn) _______________________________________ BUY Rating since Mar 22, 2020 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 10,921.0 10,565.0 14,643.0 13,140.0 Accounts receivable 12,079.0 12,197.9 12,747.0 12,680.4 Inventory 84,679.0 74,443.8 87,108.3 70,417.9 Ratios & Valuation __________________________________________ Other current assets 20,780.0 15,828.0 8,928.0 8,928.0 12/25 12/26E 12/27E 12/28E Total current assets 128,459.0 113,034.7 123,426.3 105,166.4 P/E (X) 68.1 NM 43.4 22.5 Net PP&E 15,361.0 17,041.0 17,751.0 17,931.0 EV/EBITDA (X) Net intangibles…