The Boeing Company (BA): A Bull Case Theory 

We came across a bullish thesis on The Boeing Company on Boudreau Capital Newsletter’s Substack by Nicolas Boudreau. In this article, we will summarize the bulls’ thesis on BA. The Boeing Company’s share was trading at $189.00 as of November 28th. BA’s forward P/E was 93.46 according to Yahoo Finance.

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. BA reported a sharp rebound in commercial aircraft deliveries, reaching 160 units versus 116 last year, which helped drive 30% revenue growth to $23.3 billion.

Profitability remained pressured by a $4.9 billion 777X charge that pushed segment margins deeply negative, though excluding this one-time item, commercial margins improved to –4.1%, signaling operational progress. The core 737 MAX program continues to regain momentum, with FAA approval to lift production from 38 to 42 aircraft per month, setting the stage for a credible ramp to 52 per month by 2026.

Certification fixes for the MAX 7/10 variants appear resolved, and Boeing already has 31 stored aircraft ready with minimal rework. The 787 platform is performing well, operating at seven per month and expected to reach eight by year-end, supported by incremental capex at the Charleston facility. The 777X timeline was pushed to 2027, largely reflecting regulatory caution, but Boeing’s backlog of roughly 500 aircraft underscores strong long-term demand and a clear production plan.

Beyond commercial, the defense division posted a 1.7% margin on $6.9 billion of revenue, with expectations for margin expansion as legacy fixed-price contracts roll off. Global Services remained a stable profit engine with 17.5% margins and a $25 billion backlog. Free cash flow turned positive at $200 million as production normalized, offsetting one-off DOJ payments tied to the MAX crisis.

Key catalysts include accretive divestitures like Jeppesen, the pending Spirit AeroSystems acquisition, improving manufacturing quality under new leadership, and a multi-year reset that positions Boeing for margin recovery and stronger free cash flow through 2026–2028. With a $636 billion backlog and rising international demand, Boeing appears poised for a sustained operational and financial turnaround, though risks remain around regulatory delays, legal settlements, and aircraft reliability.

Previously we covered a bullish thesis on The Boeing Company by DeepValue Capital in March 2025, which highlighted Boeing’s strong duopoly position, large backlog, and long-term turnaround potential. The company’s stock price has appreciated by 6.11% since our coverage. This is because the thesis played out well. The thesis still stands as fundamentals remain solid. Nicolas Boudreau shares a similar view but emphasizes operational momentum and margin recovery.

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Disclosure: None.