Boeing (NYSE: BA) opened in the green this morning after Jay Malave, its chief financial officer, confirmed at a UBS conference that the company’s recovery is “in full force.”
According to him, BA will finalise the pending acquisition of Spirit Aerosystems by the end of this year, which is broadly expected to stabilise the firm’s supply chain.
At the time of writing, Boeing stock is down over 15% versus its year-to-date high in September.
Here’s why it’s worth buying Boeing stock heading into 2026
On Tuesday, Malave told investors that BA will see a year-over-year increase in both 737 and 787 deliveries in 2026.
More importantly, he expects the Federal Aviation Administration (FAA) to certify the company’s 737 MAX 10 by late next year – effectively removing a long-standing overhang on Boeing shares.
Malave pointed to the defense division as a bright spot, projecting high single-digit margins in the near-term, which is significant since defense contracts often provide stability and predictable cash flows.
For those seeking a new position in BA shares, this combination of improving deliveries, margins, and supply chain creates a compelling case for sustained profitability.
The CFO’s remarks suggest Boeing isn’t just stabilising, but actively positioning itself for growth.
Could the DOJ penalties weigh on BA shares moving forward
Speaking at the UBS conference, Malave agreed that Boeing’s free cash flow (FCF) next year will likely come in below $2.0 billion expected for 2025.
While this may concern cautious investors, he attributed the expected decline primarily to a DOJ penalty – stressing that it doesn’t reflect operational weakness.
The distinction matters as it confirms the NYSE-listed firm’s operational recovery remains intact, and once the penalty is absorbed, it should be positioned to resume its trajectory toward stronger cash generation.
Simply put, the temporary hit doesn’t undermine the broader investment thesis for Boeing shares, especially since the CFO said BA remains committed to a long-term cash goal of $10 billion.
Boeing’s sales multiple also warrants buying at current levels
All in all, Malave’s comments reinforce the bullish narrative around BA stock.
Boeing is executing on a multi‑year recovery plan, supported by a massive backlog of commercial aircraft orders and a defense division that is delivering margin expansion.
SPR acquisition is poised to reduce supply chain friction, crucial to restoring production reliability. Sure, the DOJ penalty will weigh on cash flow next year, but it doesn’t alter the operational outlook – which continues to improve.
Meanwhile, valuation at a little over 2x sales remains reasonable as well, given the sheer scale of Boeing’s backlog and the potential for cash flow normalization beyond 2026.
For long-term investors, the firm offers exposure to both cyclical recovery in commercial aviation and steady defense revenues.
With management signaling confidence and investors showing resilience in the face of short‑term challenges, Boeing stock appears to have regained momentum.
Malave’s remarks provide another reason to believe that the company’s turnaround story is not only intact but accelerating.
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