Boeing reported a strong revenue recovery in 2025, with full-year sales rising 34% to $89.5 billion, reflecting improved operational performance across its commercial, defense and services divisions. Fourth-quarter revenue surged 57% year-on-year to approximately $24 billion, supported by higher commercial aircraft deliveries and increased defense volumes.
Looking ahead, the aerospace manufacturer expects free cash flow between $1 billion and $3 billion, supported by plans to ramp up aircraft deliveries in 2026, particularly for its 737 and 787 programs. Management also anticipates stronger contributions from its defense, space and security segment, alongside continued growth in global services.
Despite the positive trajectory, Boeing projects significantly higher spending in 2026. After allocating $1.9 billion in 2025, the company expects nearly $4 billion in expenditures this year. Around $1 billion of that amount is tied to the integration of Spirit AeroSystems, which Boeing acquired in December 2025. The integration is aimed at strengthening safety, quality control and supply chain coordination across operations.
Major capital investments are also planned for future product development and facility expansion. These include spending at Boeing’s defense jet and weapons site in St. Louis, where a $1.8 billion advanced coatings center operated under Phantom Works is under construction, with phased completion expected between 2026 and 2030. In addition, the company is investing $1 billion to expand and modernize two 787 Dreamliner campuses in North Charleston, South Carolina. Boeing aims to increase monthly 787 production from eight to 10 aircraft later this year.
Production increases are also planned for the 737 program. Following approval from the Federal Aviation Administration to raise output from 38 to 42 aircraft per month in late 2025, Boeing intends to further increase monthly production to 47 and eventually 52 aircraft, as manufacturing stability improves.
However, challenges remain. The delayed certification and first delivery of the 777X aircraft continue to weigh on financial performance. The first 777X delivery is now targeted for 2027, while predelivery payments are lower than previously expected due to earlier scheduling assumptions. Boeing anticipates higher production system costs in the near term but expects net cash usage to gradually improve before turning positive by 2029.
Additional financial considerations stem from prior delivery delays in the 737 and 787 programs, including customer compensation and excess advances. The company emphasized that these factors are not impacting pricing strategies for new contracts, where stricter underwriting standards are being applied to limit future delay exposure.
Boeing will also incur costs related to its agreement with the U.S. Department of Justice. In November 2025, a federal judge dismissed criminal charges tied to two 737 Max crashes, following a $1.1 billion settlement reached earlier in the year. The agreement includes a criminal penalty, funding for victims’ beneficiaries and investments in compliance, safety and quality programs.
While 2026 is expected to bring elevated spending and continued operational adjustments, Boeing maintains that improving production stability, on-time delivery and integration efforts will support a gradual strengthening of cash flow and long-term performance.
