AI Takeaway
Boeing returned to profitability in FY2025 with net income of $2.24B and revenue surging 34.5% to $89.5B, reversing the prior year's massive $11.8B net loss, though the balance sheet remains highly leveraged with $53.8B in long-term debt and a debt-to-equity ratio of nearly 30x.
Revenue
$89.46B
++34.50% YoY
EPS (Basic)
$2.49
++113.56% YoY
Gross Margin
4.8%
++7.79% YoY
Operating Income
$4.28B
++139.98% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue jumped 34.5% year-over-year to $89.5B in FY2025 from $66.5B in FY2024, reflecting a significant rebound in commercial aircraft deliveries and defense program revenues following the production disruptions and labor strikes that weighed heavily on the prior year.
Source: Source: 10-K Income Statement
Gross profit swung from -$2.0B in FY2024 to +$4.3B in FY2025, pushing gross margin from -3.0% to +4.8%. This improvement reflects better production efficiency, higher delivery volumes, and reduced abnormal production costs that plagued prior periods.
Source: Source: 10-K Income Statement
Operating income improved by $15.0B year-over-year, from -$10.7B to +$4.3B, with operating margin recovering to 4.8% from -16.1%. This dramatic turnaround reflects both higher revenues and meaningful cost discipline, though margins remain thin relative to aerospace industry peers.
Source: Source: 10-K Income Statement & Key Ratios
2 more insights available
Upgrade to unlockBoeing carries $53.8B in long-term debt against stockholders' equity of only $5.5B, resulting in a debt-to-equity ratio of approximately 29.8x. This level of leverage leaves the company highly vulnerable to any revenue shortfall, rising interest rates, or renewed operational disruptions that could impair its ability to service debt obligations.
Source: Source: 10-K Balance Sheet & Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-1.12 versus the $-0.40 analyst consensus — a -179.1% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $89.46B | $66.52B | +34.50% |
Cost of Revenue | $85.17B | $68.51B | +24.33% |
Gross Profit | $4.29B | $-1.99B | +315.42% |
Operating Income | $4.28B | $-10.71B | +139.98% |
Net Income | $2.23B | $-11.82B | +118.91% |
EPS (Basic) | $2.49 | $-18.36 | +113.56% |
EPS (Diluted) | $2.48 | $-18.36 | +113.51% |
R&D Expense | $3.62B | $3.81B | -5.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $168.24B | $156.36B | +7.59% |
Current Assets | $128.46B | $128B | +0.36% |
Total Liabilities | $162.78B | $160.28B | +1.56% |
Current Liabilities | $108.11B | $97.08B | +11.37% |
Stockholders' Equity | $5.45B | $-3.91B | +239.56% |
Cash & Equivalents | $10.92B | $13.8B | -20.87% |
Long-Term Debt | $53.85B | $53.63B | +0.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.06B | $-12.08B | +108.82% |
Investing Cash Flow | $499M | $-11.97B | +104.17% |
Financing Cash Flow | $-3.76B | $25.21B | -114.93% |
Dividends Paid | $331M | — | — |
D&A | $1.95B | $1.84B | +6.37% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 4.8% | -3.0% | +7.79% |
Operating Margin | 4.8% | -16.1% | +20.88% |
Net Margin | 2.5% | — | — |
ROE | 41.0% | — | — |
ROA | 1.3% | — | — |
Current Ratio | $1.188 | — | — |
Debt to Equity | $29.846 | — | — |
Other companies in Aerospace & Defense
Yes, Boeing returned to profitability in FY2025 with net income of $2.24B, compared to a net loss of $11.8B in FY2024. Diluted EPS recovered to $2.48 from -$18.36, driven by a 34.5% revenue increase to $89.5B and significantly improved production efficiency.
Boeing's revenue grew 34.5% year-over-year to $89.5B in FY2025, up from $66.5B in FY2024. This recovery reflects a significant rebound in commercial aircraft deliveries following the production disruptions, quality control issues, and labor strikes that severely impacted the prior year.
Boeing's most significant risks include extreme financial leverage with $53.8B in long-term debt and a debt-to-equity ratio of ~29.8x, razor-thin margins (net margin of only 2.5%), and declining cash reserves (down 20.9% to $10.9B). Additionally, any recurrence of production quality issues or FAA regulatory actions could quickly reverse the financial recovery.
Boeing's financial health is improving but remains fragile: the company returned to positive operating cash flow ($1.07B) and net income ($2.24B), but carries $53.8B in long-term debt, a current ratio of only 1.19x, and gross margins of just 4.8%. The balance sheet has improved with stockholders' equity turning positive at $5.5B, but leverage remains a major concern.
Boeing's gross margin improved from -3.0% in FY2024 to +4.8% in FY2025, and operating margin recovered from -16.1% to +4.8%, as higher delivery volumes allowed the company to better absorb fixed production costs. However, these margins remain well below historical levels and those of aerospace industry peers, indicating the recovery is still in progress.