BA
The Boeing Company
Industrials · Aerospace & Defense · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The maximum growth score reflects Boeing's exceptional year-over-year revenue and earnings improvement, which anchors the composite score positively.
- Below-average profitability, very high leverage with a debt-to-equity of 9.87 and interest coverage of only 1.5, and highly volatile quarterly earnings all weigh heavily on the financial health and momentum components.
- The dividend factor contributed positively due to a disciplined 14.8% payout ratio, but the theme alignment did not contribute to the score under the model's current methodology.
Why Not Higher
- Extreme financial leverage — a debt-to-equity ratio of 9.87 and interest coverage of just 1.5 — combined with thin margins of 2.5% net and 4.8% operating in FY2025 severely limit the financial health score.
- Highly erratic quarterly earnings, including a net loss of $5.3 billion in 2025Q3 followed by a gain of $8.2 billion in 2025Q4 and near-zero in 2026Q1, prevent the momentum factor from reflecting a sustainably improving trend.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $66,517,000,000 to FY2025's $89,463,000,000, a gain of +34.5%. Net income swung from FY2024's -$11,817,000,000 to FY2025's $2,235,000,000 (+118.9%), and diluted EPS moved from FY2024's -$18.36 to FY2025's $2.48 (+113.5%).
The model rewarded Boeing's simultaneous top-line expansion and bottom-line turnaround across FY2024 to FY2025, with all three growth metrics showing dramatic improvement, earning the maximum sub-score.
In FY2025, Boeing's net margin was 2.5%, its operating margin was 4.8%, and its return on assets was 1.3%.
While Boeing returned to profitability in FY2025, these thin margins and a low return on assets indicate the company is still in early-stage recovery, which the model reflects with a below-average profitability sub-score.
In FY2025, Boeing carried a debt-to-equity ratio of 9.87 and an interest coverage ratio of 1.5, against total assets of $168,235,000,000.
A debt-to-equity ratio of 9.87 signals very high financial leverage, and an interest coverage ratio of only 1.5 in FY2025 means operating income barely exceeds interest obligations, both of which the model penalizes heavily in the financial health component.
Quarterly revenue was relatively stable, ranging from $22,217,000,000 in 2026Q1 to $23,948,000,000 in 2025Q4, but operating income was highly volatile: -$176,000,000 in 2025Q2, -$4,781,000,000 in 2025Q3, a sharp recovery to $8,777,000,000 in 2025Q4, then a pullback to $448,000,000 in 2026Q1. Net income followed a similarly erratic path, swinging from -$611,000,000 in 2025Q2 to -$5,337,000,000 in 2025Q3, then $8,220,000,000 in 2025Q4, and back to -$4,000,000 in 2026Q1.
The model awarded a mid-range momentum score reflecting steady top-line revenue but significant and inconsistent swings in profitability across the trailing four quarters, making the earnings trend difficult to characterize as sustainably improving.
In FY2025, Boeing's dividend payout ratio was 14.8% of net income.
A payout ratio of 14.8% in FY2025 suggests Boeing resumed or maintained a modest dividend relative to earnings, which the model views favorably as a sign of financial discipline without overextending cash returns during a recovery period.
Boeing is assigned to the macro themes of Defense Spending and Space Economy.
Although Boeing carries two actively tracked macro theme assignments, this alignment did not translate into a positive sub-score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Boeing posted a dramatic financial turnaround in FY2025, with revenue rising 34.5% to $89.5 billion and net income swinging from a loss of $11.8 billion to a profit of $2.2 billion, earning the model's maximum growth score. However, the recovery remains fragile: net and operating margins are thin at 2.5% and 4.8% respectively, the debt-to-equity ratio stands at a very high 9.87, and quarterly earnings have been highly volatile, swinging from deep losses to large gains and back within a single year. The composite score of 46.9/100 and a Very High risk rating reflect a company in early-stage recovery with meaningful structural financial risks still present.
Plain English
Boeing went from losing nearly $12 billion to making over $2 billion in a single year, which is impressive, but the company still carries an enormous debt load and its profits have been all over the place quarter to quarter, making it hard to trust that the turnaround is fully locked in.
Bull Case vs. Bear Case
Bull Case
- Revenue surged 34.5% year-over-year to $89.5 billion in FY2025, and net income flipped from a loss of $11.8 billion to a gain of $2.2 billion, demonstrating a powerful top-line and bottom-line recovery simultaneously.
- Boeing resumed a modest dividend at a 14.8% payout ratio in FY2025, signaling financial discipline and a degree of confidence in the recovery without overextending cash returns.
- Boeing is aligned with two actively tracked macro themes — Defense Spending and Space Economy — positioning it in sectors with long-term structural demand.
Bear Case
- Boeing's debt-to-equity ratio of 9.87 and interest coverage ratio of only 1.5 in FY2025 mean the company is heavily leveraged and operating income barely covers interest obligations, leaving little margin for error.
- Quarterly net income swung from -$5.3 billion in 2025Q3 to +$8.2 billion in 2025Q4 and back to essentially breakeven at -$4 million in 2026Q1, making the earnings trajectory highly unpredictable.
- Despite returning to profitability, FY2025 net margin of 2.5% and return on assets of 1.3% indicate Boeing is still in early-stage recovery with very thin profitability buffers.
What Could Change the Picture
Bullish Triggers
- Sustained improvement in quarterly operating income — moving consistently above the 2026Q1 level of $448 million — would suggest the profitability recovery is becoming durable rather than episodic.
- A meaningful reduction in the debt-to-equity ratio from its current 9.87 level, or an improvement in interest coverage well above 1.5, would signal that Boeing's balance sheet risk is being actively addressed.
Bearish Triggers
- A return to quarterly net losses beyond the volatility already observed — particularly if revenue growth also stalls from its current range of roughly $22–24 billion per quarter — would suggest the FY2025 turnaround was not sustainable.
- If operating margins fail to expand beyond the current 4.8% level, the thin profitability combined with extreme leverage could make Boeing vulnerable to any demand or cost shock.
Risk Profile
Very High RiskBoeing's interest coverage ratio of only 1.5 in FY2025 means operating income barely exceeds interest expense, leaving the company with very little financial cushion if earnings deteriorate. Compounding this, quarterly operating income has swung from -$4.8 billion to +$8.8 billion and back to $448 million within four quarters, underscoring the unpredictability of near-term cash generation.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.