Boeing on Tuesday delivered encouraging second-quarter results, strengthening our conviction in CEO Kelly Ortberg’s turnaround and the runway ahead for the stock. Revenue in the second quarter rose 8% from a year ago to $24.56 billion, topping the consensus of $24.25 billion, according to estimates compiled by LSEG. Adjusted earnings per share (EPS) was a loss of 76 cents, steeper than the 30-cent loss expected by analysts, LSEG data showed. Free cash flow (FCF) came in at $631 million, much better than the consensus of a $177 million cash burn, according to FactSet. Shares rose more than 4% in late morning trading. The stocks of Boeing and many of its aerospace peers have experienced an up-and-down 2026, due in large part to the outbreak of the Iran war on Feb. 28. The five-month conflict has caused big spikes — and subsequent falls — in oil prices, raising concerns that airlines could cut flights to offset higher fuel costs. In the case of Boeing, there’s also been a concern that Middle East-based carriers could delay orders due to heightened instability in the region — though Ortberg said earlier this year that wasn’t happening. Boeing shares entered Tuesday’s release in one of their downdrafts, off almost 10% from their July 6 close, after the interim peace deal between Washington and Tehran collapsed this month . A pause in fighting in recent days has sparked a retreat in oil prices, including on Tuesday, but the geopolitical situation remains fluid. As of Monday’s close, the stock was about 16% below its highest close this year, at $252.15 a share on Jan. 23. That also represents the stock’s highest close since Ortberg took over in August 2024, tasked with cleaning up the planemaker following years of safety and quality crises. BA YTD mountain Boeing’s year-to-date stock performance. Why we own it While execution has been spotty under previous leadership, we believe the revitalization that investors have been waiting for is here under CEO Kelly Ortberg. Additionally, Boeing has been one of the biggest winners from the Trump administration’s trade deals with other countries. Competitor: Airbus Initiation: Sept. 8, 2025 Most recent purchase: March 19, 2026 Weighting in portfolio: 3.2% Bottom line Boeing took another step forward on its turnaround in the second quarter. The clearest indicator of progress is the stronger-than-expected free cash flow — the most important metric to evaluate Boeing at this stage of Ortberg’s tenure. “That’s why I think that you can still buy Boeing here,” Jim Cramer said on Tuesday’s Morning Meeting , when discussing the company’s second-quarter cash flow performance. Accordingly, we’re upgrading our rating on the stock to a buy-equivalent 1. Our price target of $275 a share remains unchanged. Boeing is now one of our aerospace stocks in our portfolio, following the separation of Honeywell Aerospace into a standalone company late last month. On Monday, we added to our position in Honeywell Aerospace,…
Read More: We’re upgrading our Boeing rating as Ortberg’s turnaround bears fruit