Boeing’s second-quarter earnings report showed progress with the delivery of 104 737 MAX and 24 787 jets. Defense saw a small profit, and services contributed nearly $1 billion. CEO Kelly Ortberg expressed optimism about increasing 737 production by 2026. Morningstar revised Boeing’s fair value estimate to $249 per share, 8% below current trading.

Boeing’s financial strength has been challenged in recent years, with significant borrowing, layoffs, and debt restructuring. The company ended the third quarter of 2024 with $57.5 billion in debt and $10.5 billion in cash. To address these challenges, Boeing issued $23 billion in equity and preferred stock, leaving it with $7 billion in cash and $53 billion in debt by mid-2025.

Boeing faces operational and macroeconomic risks, including supply chain constraints and demand fluctuations due to the pandemic. Uncertainty remains high, especially with China’s aviation market potentially impacting future orders. Boeing bulls highlight the company’s backlog and growth potential, while bears point to engineering issues and changing consumer behavior as potential challenges.

Read more at Morningstar: After Earnings, Is Boeing Stock a Buy, a Sell, or Fairly Valued?