Boeing Co Q1 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Douglas Harned - Bernstein - Analyst : Good morning. Thank you. Kelly, if we go back to the first Trump administration, negotiations on subsidies across the Atlantic led effectively to a 0 tariff environment for aviation. And when you look at the recent tariffs announced and under consideration, I mean, we would say they do nothing positive for the industry. I expect if Guillaume Faury were on this call, the two of you would probably be in violent agreement on this. But you commented earlier that the administration understands the importance of the industry, but can you describe how you and others are interacting with Washington to get around, get out of this tariff environment and what are you hearing back? What's your sense on how this might evolve in the US and even in Europe and China based on your interactions there?

Question: Douglas Harned - Bernstein - Analyst : Very good. Thank you.

Question: Myles Walton - Wolfe Research - Analyst : Thanks. Good morning and congrats on the move, Matt. You survived a lot. So Brian, I think in January, you were expecting deliveries in the 37 in the low 400s and maybe 80 or so on the 787, does that still -- that framework still holds with the 50 aircraft from China not going to China specifically, as Kelly mentioned.

Question: Myles Walton - Wolfe Research - Analyst : All right, thank you.

Question: Seth Seifman - JPMorgan - Analyst : Thanks very much, and good morning, everyone, and congratulations, Matt. Just wanted to ask a follow-up question on tariffs on the cost side. I guess if there's anything you could say to kind of size if we're thinking about the two impacts being kind of the China impact and the cost impact, maybe kind of sizing potentially those two impacts? And then talking about the drawback process on the cost side, do you need to maybe manage the supply chain a little bit on the cost side, if there are suppliers down in the chain who can handle this as well as some of the larger and more well-capitalized suppliers. And also how you deal with -- I gather you're going to get a push from certain suppliers to kind of push through tariffs that they have with different surcharges and anything you can say about that process?

Question: Seth Seifman - JPMorgan - Analyst : Great. Thank you.

Question: Scott Deuschle - Deutsche Bank - Analyst : Hey, good morning, Brian. On the last call, you seem to reference that the free cash flow usage for the year will be somewhere in the $4 billion to $5 billion range. I guess can you give an update on how you're thinking about that specific range as well as some further characterization of the free cash flow cadence as we move through the year? Thank you.

Question: Scott Deuschle - Deutsche Bank - Analyst : Appreciate it. Thank you.

Question: Sheila Kahyaoglu - Jefferies - Analyst : Good morning, Kelly, Brian, and thank you Matt so much. So maybe just on that last thought, assuming the skyline is largely intact outside of China, and there's no demand impact with tariffs, how are we thinking that production ramps outside 2025 with the 37 and the 87 rates? And how you're watching the biggest risks in the supply chain and the master schedule and how that correlates to cash flow expectations as you continue to benefit from volume ramps, but also on-time deliveries?

Question: Sheila Kahyaoglu - Jefferies - Analyst : Thank you.

Question: Scott Mikus - Melius Research LLC - Analyst : Good morning.

Question: Scott Mikus - Melius Research LLC - Analyst : Kelly, congrats on the F-47 win. I have a quick question there. There was a comment from the administration about the EMD phase being cost-plus, but there were some competitively priced options for LRIP. So I'm just wondering, are those options fixed price? Do they have inflation escalators built into them? How should we be thinking about the risk from those options?

Question: Scott Mikus - Melius Research LLC - Analyst : Alright, thanks for taking the question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 23, 2025 / 2:30PM, BA.N - Q1 2025 Boeing Co Earnings Call

Question: David Strauss - Barclays - Analyst : Good morning.

Question: David Strauss - Barclays - Analyst : Hey Kelly. Could you maybe dig in a little bit more on the status of the six KPIs, specifically the progress you're seeing there, I guess, maybe three months ago, both on the MAX and the 787, I think you had highlighted there was one on the 787 that was kind of out of line a little bit. If you could just touch on that. And then how you've gone about mitigating risk around the Jenkintown, the fire there? And how do you feel like how you've got that kind of captured in the guidance as well? Thanks.

Question: Noah Poponak - Goldman Sachs - Analyst : Hey, good morning, everyone.

Question: Noah Poponak - Goldman Sachs - Analyst : Kelly, how did you reduce traveled work by 50% in a few months? And how did you have a positive defense margin despite the tanker news in the quarter? And really, the bigger picture question there is, were some of these improvements inevitable with time? Or how much have you changed specifically since you've come on board with the blocking and tackling of the operating performance of the business. You've laid out how you're going to turn the battleship, but curious if you could talk about the shorter-term simpler blocking and tackling improvements you've made and I thought maybe those would be two that would be helpful to hear more about.

Question: Noah Poponak - Goldman Sachs - Analyst : Okay. I appreciate all the detail. And Matt, congrats on the promotion, and thanks for all the help over the years.

Question: Peter Arment - Robert W. Baird & Co., Inc. - Analyst : Yeah, thanks. Hi Kelly, Brian. Congrats Matt. Kelly, I guess maybe just to wrap up a little bit on a lot of questions around the rate breaks. But -- when you get to 38 and obviously, your -- the FAA is reviewing the KPIs with you. How do we think about that when you're moving beyond rate 42 or rate 47, is that something you're doing in concert with the FAA? I know you mentioned the field that you're looking for stability first on all those. Is it just keeping them in the loop or are they more involved in the process? Appreciate it.

Question: Noah Poponak - Goldman Sachs - Analyst : Thanks for all the call. I appreciate it.

Question: Robert Stallard - Vertical Research Partners - Analyst : Thanks so much. Good morning.

Question: Robert Stallard - Vertical Research Partners - Analyst : Congrats, Matt, on the move. A quick question on the sale you announced yesterday. Brian, maybe give us some idea of what the impact could be on future EBIT and free cash flow dilution as this exits the business? And what you expect your net cash proceeds to be after tax from the sale? Thank you.

Question: Peter Arment - Robert W. Baird & Co., Inc. - Analyst : Okay, thanks so much.

Question: Richard Safran - Seaport Global Securities LLC - Analyst : Thanks. Kelly, Brian, good morning, Matt. Congrats. I think you guys have talked several times about your portfolio shaping. I thought maybe you'd update us on where the Jeppesen sale leaves you as you look forward. Is there anything else that you're considering on any other items on the list. And on Jeppesen specifically, I think it's a pretty important digital asset. So I was just wondering how you think about where to set the perimeter of the deal. I was wondering if you kept what you needed to ensure you have a strong digital capability going forward? Thanks.

Question: Richard Safran - Seaport Global Securities LLC - Analyst : Well, thanks very much.