Latest news with #777-8Freighter
Yahoo
13-05-2025
- Business
- Yahoo
Boeing Wins Order for 777X Aircraft: Should You Buy or Sell the Stock Now?
The Boeing Company BA recently secured a contract from China Airlines to deliver 10 777-9 passenger and four 777-8 Freighter airplanes. Additionally, the airline has options to purchase five 777-9s and four 777-8 Freighter jets. With global customers having ordered more than 520 777X airplanes to date, Boeing's proven prowess in the commercial aerospace market is further strengthened, ensuring its long-term revenue stability. This, in turn, might encourage investors interested in aerospace stocks to add this American jet manufacturer to their portfolio. However, before adding a stock to one's portfolio, one must consider other parameters like share price performance, opportunities as well as risks (if any) to investing in the same. Shares of Boeing have surged 12% over the year-to-date period, outperforming the S&P 500's loss of 4.4%. The stock also beat the Zacks aerospace-defense industry's rise of 10.8% and the broader Zacks Aerospace sector's growth of 9.7% in the said time frame. Image Source: Zacks Investment Research Shares of other aerospace bigwigs like Embraer ERJ and Airbus EADSY have also risen considerably over the year-to-date period. Notably, shares of Embraer and Airbus have gained 31% and 10.5%, respectively. This aerospace manufacturer has been making headlines since the beginning of the year, driven by a series of contract wins across both commercial and defense sectors, as well as several valuable partnership agreements. Together, these developments (expected to strengthen the company's resilience during periods of economic or geopolitical uncertainty) must have reinstated investors' confidence in BA, which got duly reflected in its year-to-date share price hike. Notably, Boeing began its 2025 media account with the announcement of a strategic partnership with Norsk e-Fuel in January, which enables it to invest in the production and availability of sustainable aviation fuel (SAF). In the next month, Boeing secured an order from the Japan Self-Defense Forces for the supply of 17 CH-47 Block II Chinook helicopters. In March, Japan Airlines offered a contract to Boeing to deliver 17 of its 737-8 jets, and BOC Aviation issued an order for the supply of 50 737-8 jets. In April, Boeing signed an agreement to sell portions of its Digital Aviation Solutions business, including its Jeppesen, ForeFlight, AerData and OzRunways assets, to Thoma Bravo for cash worth $10.55 billion. Rising air travel and an aging global fleet are driving demand for new jets and aftermarket services, which likely contributed to Boeing Global Services (BGS) unit generating a solid $5.1 billion in revenues in the first quarter of 2025. Future growth for Boeing in this market looks promising, with the company's upcoming aircraft offering 25-40% better fuel efficiency and lower emissions. With a strong $22.04 billion backlog, as of March 31, 2025, the BGS unit is well-positioned for sustained long-term expansion. In fact, the rapidly growing commercial air travel also bodes well for other aerospace giants like Embraer and Airbus, both of which actively serve the commercial aftermarket services market through their Embraer Services & Support and Airbus Services units, respectively. Boeing's long-term defense outlook also remains strong, supported by rising U.S. defense spending and major program involvement, such as the F-47 Next Generation Air Dominance platform. In the first quarter of 2025, its defense unit secured $4 billion in contracts, taking the backlog to $61.57 billion. Continued innovation, evident from its progress on the MQ-25 program, and strong government support signal strong growth potential for Boeing's defense offerings in the years ahead. In line with this, the consensus estimate for BA's long-term (three-to-five years) earnings growth rate is pegged at 17.9%, higher than the industry's 11.5%. Now, let's take a sneak peek at the company's near-term estimates to understand whether the figures mirror similar growth prospects. Boeing's estimate for second-quarter 2025 sales suggests an improvement of 18.4% from the year-ago quarter's reported figure, while that for full-year 2025 sales indicates a rally of 25.7%. A similar improvement trend can be observed from its 2026 sales estimates. Its quarterly as well as yearly earnings estimates also reflect similar robust performance on a year-over-year basis. Additionally, an upward revision has been observed in the company's near-term earnings estimates over the past 60 days. This indicates that investors are gaining confidence in the stock's earnings-generating capabilities. Image Source: Zacks Investment Research Image Source: Zacks Investment Research While Boeing offers strong growth prospects, it also faces significant challenges that could affect its operational performance, which investors should carefully consider before investing in the stock. Although the commercial aerospace market has been benefiting from steady growth in air travel in recent times, persistent supply-chain issues, particularly those arising from a shortage of aircraft parts, continue to affect the global aviation industry. This, in turn, poses a significant risk for aircraft manufacturers, such as Boeing, Embraer and Airbus. Looking ahead, persistent supply-chain issues are expected to continue to play the role of a primary growth inhibitor in the commercial aviation industry this year as well. Moreover, the recently imposed tariffs by the U.S. administration on imported goods might exacerbate the global supply-chain turmoil, resulting in delays in acquiring parts needed for Boeing's jet production. This might increase Boeing's production costs and strain its production timelines, creating uncertain challenges for the jet giant in maintaining its delivery schedules. This, in turn, might hurt its financial position. The image below shows that BA stock's trailing 12-month return on invested capital (ROIC) not only lags the peer group's average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses. Image Source: Zacks Investment Research However, the ROIC of its peers, Embraer and Airbus, is currently better than that of Boeing. While ERJ's ROIC is currently 14.24, that of EADSY is 4.71. In terms of valuation, RTX's forward 12-month price-to-sales (P/S) is 1.69X, a premium to its peer group's average of 1.66X. This suggests that investors will be paying a higher price than the company's expected sales growth compared to that of its peer group. The stock's forward 12-month P/S also seems stretched when compared to its five-year median value, 1.40. Image Source: Zacks Investment Research To conclude, investors interested in Boeing should wait for a better entry point, considering the stock's poor ROIC and premium valuation. BA currently has a VGM Score of F, which is also not a very favorable indicator of strong performance. However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, considering its recent share price hike, solid sales and earnings growth potential as well as upward revision in near-term earnings estimates. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
08-05-2025
- Business
- Yahoo
Boeing Secures Order From Taiwan's China Airlines
Boeing Company (NYSE:BA) shares are trading higher on Thursday. The company disclosed that Taiwan-based China Airlines has ordered 14 Boeing 777X wide-body aircraft. China Airlines placed an order for ten 777-9 passenger aircraft and four 777-8 Freighter airplanes. This order, which was booked in March 2025, also includes options for an additional five 777-9s and four 777-8 Freighters. Notably, China Airlines is the first airline in Taiwan to order the fuel-efficient 777X. The airline will utilize the widebody jets' increased capacity and extended range on its long-haul routes connecting Taiwan with North America and Europe. Also Read: Kao Shing-Hwang, chairman of China Airlines said, 'The advanced technology and features of the 777-9 will provide our customers with the best-in-class flying experience, while the 777-8 Freighter's range and fuel-efficiency will enable us to maintain a leadership position in air cargo.' Dan Schull, Boeing vice president of Commercial Sales, Northeast Asia added, 'Operating the 777-9 and 777-8 Freighter will allow China Airlines to add capacity and position the airline for further growth going forward.' In April, Boeing reported first-quarter revenue of $19.496 billion, beating the consensus of $19.43 billion and adjusted loss per share of 0.49 cents beat the consensus of a $1.27 loss per share. The company booked 221 net orders and delivered 130 commercial airplanes, with a backlog of over 5,600 planes valued at $460 billion in the quarter. On April 23, 2025, Boeing CEO Kelly Ortberg confirmed that China has stopped taking delivery of Boeing aircraft due to escalating trade tensions and high tariffs between the U.S. and China. The halt in Boeing's China deliveries came after President Donald Trump raised tariffs on Chinese goods to 145%. China retaliated with 125% tariffs on U.S.-made goods, including aircraft, which made Boeing planes significantly less affordable for Chinese customers. The ban has drawn the attention of President Donald Trump toward Boeing. The company's significant role in China's retaliation strategy has been highlighted by Bank of America (BofA) aerospace and defense analyst Ronald Epstein, Fortune reported. Epstein stated that Boeing is the U.S.'s largest exporter and is not surprised by China's move; however, they viewed the situation as 'unsustainable.' 'When considering balances of trade, we think the Trump Administration can't ignore Boeing," cautioned Epstein. Investors can gain exposure to the stock via the iShares U.S. Aerospace & Defense ETF (BATS:ITA) and Direxion Daily BA Bull 2X Shares (NASDAQ:BOEU). Price Action: BA shares are up 1.37% to $188.10 at the last check on Thursday. Read Next:Image via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? BOEING (BA): Free Stock Analysis Report This article Boeing Secures Order From Taiwan's China Airlines originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malaysian Reserve
08-05-2025
- Business
- Malaysian Reserve
China Airlines Announces Order for Boeing 777X Passenger and Freighter Models
TAIPEI, May 8, 2025 /PRNewswire/ — Boeing [NYSE: BA] and China Airlines (CAL) today announced the carrier as the newest 777X customer with an order for 10 777-9 passenger and four 777-8 Freighter airplanes. The first carrier in Taiwan to order the fuel-efficient 777X, China Airlines will leverage the widebody jet's added capacity and range on long-haul routes to North America and Europe. In addition to the firm order, which booked in March 2025 and was posted as unidentified on Boeing's orders and deliveries website, the airline has options to purchase five 777-9s and four 777-8 Freighters. With this order, China Airlines joins an exclusive group of global airlines that have ordered the passenger and freighter variants of the 777X family. 'As a long-time operator of the 777-300ER and 777 Freighter, we are excited to welcome Boeing's newest 777X family into our world-class fleet,' said Kao Shing-Hwang, chairman of China Airlines. 'The advanced technology and features of the 777-9 will provide our customers with the best-in-class flying experience, while the 777-8 Freighter's range and fuel-efficiency will enable us to maintain a leadership position in air cargo. This is a significant investment toward our future, and we will rely on the new 777X family to help realize our long-term sustainability goals.' The world's largest twin-engine jet, the 777-9 will offer 20% lower fuel use and emissions than the airplanes it replaces, as well as the lowest operating cost per seat of any airplane as it connects far-flung destinations with a range of 7,295 nautical miles (13,510 km). The 777-9 will allow China Airlines to maximize capacity with 426 passengers in a typical two-class configuration while offering exceptional comfort with a more spacious cabin environment. 'The 777X will enable us to deliver an enhanced travel experience and greater reliability for our customers,' added Chen Han-Ming, president of China Airlines. Given the interoperability of the 777X with its current Boeing twin-engine freighters, China Airlines plans to renew its fleet with the new 777-8 Freighter, which offers 747-sized payload capability along with a 30% improvement in fuel efficiency and emissions and up to a 60% smaller noise footprint. 'As we welcome China Airlines to the 777X customer family, we are pleased to build on our nearly 60-year partnership that traces back to the 707 and 727,' said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. 'We value China Airlines' continued confidence and look forward to delivering the new 777Xs adorned with the beautiful plum blossom livery in the coming years.' Customers around the world have now ordered more than 520 777X airplanes sustaining thousands of jobs at Boeing's Everett, Wash., site and across the supply chain. 'Operating the 777-9 and 777-8 Freighter will allow China Airlines to add capacity and position the airline for further growth going forward,' said Dan Schull, Boeing vice president of Commercial Sales, Northeast Asia. 'In addition to these new 777X jets, China Airlines has 787 Dreamliners on order that will further strengthen its world-class fleet for many years to come.' A leading global aerospace company and top U.S. exporter, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. Our U.S. and global workforce and supplier base drive innovation, economic opportunity, sustainability and community impact. Boeing is committed to fostering a culture based on our core values of safety, quality and integrity. Boeing Media Relationsmedia@
