Boeing’s stock initially dropped after an earnings miss in its defense business, then soared to a 52-week high during the post-earnings call. Revenue for Q4 rose 30% to $23.95 billion, exceeding estimates. Adjusted EPS was $9.92, but a gain from a transaction skewed results. Free cash flow was $375 million, beating expectations.

CEO Kelly Ortberg’s turnaround efforts showed progress, with stabilized 737 production and record backlog of $692 billion. Despite a $507 million loss in the Defense segment due to KC-46A program costs, revenue increased 37% to $7.42 billion. Commercial Airplanes revenue surged 139% to $11.38 billion, with 160 deliveries in Q4.

Boeing expects to achieve positive full-year 2026 free cash flow, with a range of $1-3 billion. Despite a durability issue with a 777 engine, delivery rates for 2027 are not expected to be impacted. Global Services revenue increased 1.8% to $5.21 billion, with a record backlog of $30 billion. These developments indicate a positive outlook for the company.

Read more at CNBC: Boeing shares swing on mixed results, but turnaround is progressing