The Boeing Company (BA) Cash Flow Statement

The OCF/NI ratio of -3.07 in 2026Q2 highlights a stark disconnect between accounting losses and cash inflows, with working capital changes providing the bridge. However, this is a reversal from prior quarters where working capital was a major drag, as seen in 2025Q1's -$2.7B outflow. Investors should monitor whether this working capital benefit is sustainable or merely a timing effect from delivery timing.

The trajectory shows a clear inflection from deep negative FCF in 2024 to positive territory in 2026Q2, but the magnitude is modest relative to revenue. The 2025Q4 FCF of -$1.2B despite a net income of $8.2B underscores that reported earnings are not translating into cash, likely due to non-cash gains. The sustainability of this positive FCF hinges on continued delivery improvements and cost control, which remain uncertain.

The CapEx/Revenue ratio of 3.0% in 2026Q2 is consistent with prior quarters, showing no significant pullback in investment. This is notable given the negative operating margins and high debt levels, implying that management is betting on future production rate increases. However, if deliveries fail to ramp as expected, this capital intensity could further pressure liquidity.

The extreme swings in working capital, particularly inventory and customer advances, are characteristic of Boeing's long production cycles. The positive contribution in 2026Q2 may indicate progress in clearing parked aircraft, but the prior year's massive outflows suggest this is not yet a stable trend. Analysts should adjust for these swings to assess underlying cash generation.

The company has suspended buybacks and maintains only a token dividend, which is a prudent move given the balance sheet strain. However, the $1.2B acquisition outflow in 2025Q4, likely related to the Spirit AeroSystems integration, indicates that M&A is still a priority. This deployment strategy suggests management is prioritizing operational fixes over shareholder returns, which may be appropriate but limits equity support.

The cumulative OCF/NI ratio is close to 1, indicating that over time, cash conversion has been consistent with reported losses. However, this masks the severe quarterly swings, where OCF/NI ranged from -3.07 to 44.75. The alignment suggests that the company is not aggressively using accruals to defer losses, but the negative trend underscores the ongoing cash drain from operations.