Boeing faces significant risks from slowed/paused commercial airplane production and deliveries due to safety/quality issues, supply chain constraints, and an ongoing labor strike. Increased borrowing costs and potential credit rating downgrades threaten access to capital markets. Reach-forward losses on major development programs (777X, 767, KC-46A Tanker, T-7A Red Hawk, VC-25B, MQ-25) and potential termination liabilities pose further operational and financial risks. The acquisition of Spirit AeroSystems is contingent on various approvals and conditions, adding uncertainty.
Financial Upside
The acquisition of Spirit AeroSystems, if successful, could bring potential synergies and quality improvements. Higher revenues from weapons and proprietary programs at the Defense, Space & Security segment, and increased commercial services revenue at Global Services, are potential positive developments. The company also has significant backlog, though there is uncertainty regarding the timing of revenue generation from these orders.
