Latest news with #BrianWest
Yahoo
02-06-2025
- Business
- Yahoo
Boeing's Stock Is Crushing the Market in 2025. Can It Continue?
Boeing is delivering on its key objectives, and as long as it does so, the stock price should benefit. CEO Kelly Ortberg is improving the company's forecasting costs and ramping up production. The defense business generated a profit in the first quarter after serial losses over the last few years. 10 stocks we like better than Boeing › Boeing (NYSE: BA) stock is up 13.6% this year compared to a minimal gain for the S&P 500, primarily due to management's improved performance under relatively new CEO Kelly Ortberg, who was appointed last August and continues to steer the company in a positive direction. The key question is whether the stock price renaissance will continue. Here's the lowdown. The company started the year mainly as a self-help story. While no business in the aerospace industry will ever escape the orbit of influence of its cyclical end markets -- demand for air travel -- the reality is that Boeing had ample opportunity to outperform expectations due to prior disappointing operational execution. There are three main areas that Boeing needed to improve on going into 2025, specifically: Ramp up production of the narrow-body 737 MAX to an initial rate of 38 aircraft a month in 2025 and then increase it thereafter. Improve margin performance at Boeing Defense, Space & Security (BDS), particularly with its challenging fixed-price contracts. Keep the wide-body 777X on track for its estimated first delivery in 2026. The company appears to be delivering on all three of these objectives so far in 2025, and the self-help narrative is on track. According to Chief Financial Officer Brian West on the last earnings call, Boeing received approval from the Federal Aviation Administration (FAA) to expand flight testing, and he confirmed the target for the first delivery of the 777X in 2026 to Lufthansa. Moreover, key 777X customer Emirates recently confirmed it expected first delivery of the aircraft by the end of 2026. West also confirmed that the company was on track to achieve the 38-per-month rate on the 737 MAX. And Ortberg outlined plans to then increase the rate to 42 per month and then raise it in increments of five per month, with the increases taking at least six months to implement. There is no guarantee that it will meet this goal, and the company needs to demonstrate to the FAA that it can produce at a rate of 38 per month with high quality before the agency lifts its production cap. Still, management expects to hit the 38 number in the next few months -- something to keep an eye on. The issue of defense profitability is best illustrated by examining the following chart, and investors will hope it marks the start of a sustained period of profitability for its BDS division. Fortunately, there's reason to believe this might be the case. Management has long defined its BDS revenue in terms of three buckets, the smallest of which is the most problematic. About 60 percent of BDS' business is in its core defense sector, and it continues to perform with mid- to high-single-digit profit margins, according to West. The next 25% is allocated to the fighter and satellite programs, with West mentioning "favorable margin trends" on the earnings call. The real issue lies with the 15% in the fixed price programs, and here Ortberg disclosed that Boeing had achieved estimated-at-completion (EAC) "stability" in the quarter. EAC is a forecast of the total cost of a project based on current performance. Ortberg outlined an aim to improve EAC in October, with the goal of enhancing cost controls on these contracts. It is working, and management has confirmed progress on the milestones for the T-7 training airplane. Meanwhile, the MQ-25 (an aerial refueling drone) is scheduled to move to ground and flight testing in 2026. Over the near to medium term, there's every reason to think the company can. As long as Boeing continues to execute on the three areas discussed above, the narrative should remain positive, particularly when compared to the prevailing pessimism surrounding the company going into 2025. It's climbing a wall of worry, and as long as Ortberg can demonstrate progress on its key and near-term objectives, the stock is likely to receive support. That said, the company has a long way to go before it can convince investors that it's in a position to generate the kind of earnings and cash flow necessary to develop the next generation of narrow-body commercial aircraft while paying down debt and returning capital to investors. That's a deeper question that needs to be addressed by long-term investors, but for now, the outlook is positive for Boeing. Before you buy stock in Boeing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Boeing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Boeing's Stock Is Crushing the Market in 2025. Can It Continue? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
16-05-2025
- Climate
- Yahoo
Tybee's Beach Bum Parade returns with South's Biggest Water Fight
TYBEE ISLAND, Ga. (WSAV) – Grab your water guns and prepare to get drenched! The annual beach bum parade is back! It hits the streets later today, and everyone is fair game in the 'south's biggest water fight'. Signs warning against parking along Butler Avenue on Friday are up. This is because in just a few hours, the island will transform into a battlefield of water guns! And warning, there is no safe zone! Everyone—and car—is fair game today. First held in 1987 by a local softball team, the Tybee Beach Bum Parade started as a small, fun celebration, but over the years, it has exploded into a full-blown community thousands will line Butler Avenue with water guns in hand, ready to soak everyone in sight. The event features parade floats and even island royalty like the grand marshal and big kahuna, all join the soaking fun, and this year also features a princess on the parade committee! City officials say that the tradition is an unofficial kickoff to summer. 'It kind of signifies kicking off summer. And so, we're getting ready to start seeing really, really big crowds down here… It's fun for all ages. Anybody can come out. It's a big water gun fight and it's just supposed to be a great weekend for weather. So, I'm hoping that a lot of people will come and enjoy it,' said Mayor Brian West, the Mayor of Tybee Island. The parade starts at 6:30 p.m., but water fights often begin much earlier. Just follow the rules – no other substances in your water gun – and stay away from police officers! Remember, no ice water or pressure washers allowed! Just one tip: leave the dry clothes at home. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Al Etihad
24-04-2025
- Business
- Al Etihad
Boeing ready to resell jets as tariffs hit China trade
24 Apr 2025 17:13 SEOUL/PARIS (REUTERS)Boeing is looking to resell potentially dozens of planes locked out of China by tariffs after repatriating a third jet to the US rather than store it without willing move to prevent a repeat of the costly build-up of undelivered jets seen during past fluctuations in Chinese imports comes as the planemaker redoubles efforts to save cash and pay off debt by selling off part of its services took the rare step of publicly flagging the potential aircraft sale during an analyst call on Wednesday, saying there would be no shortage of buyers in a tight jet market."Customers are calling, asking for additional airplanes," CFO Brian West said. Such negotiations are usually kept tightly under wraps."Due to the tariffs, many of our customers in China have indicated that they will not take delivery," CEO Kelly Ortberg sources said the comments were seen as a message to Beijing and Washington that the tariff war between the world's two largest economies would be hugely costly as airlines scramble for capacity and Boeing recovers from multiple President Donald Trump this month raised baseline tariffs on Chinese imports to 145%. In retaliation, China imposed a 125% tariff on U.S. West cautioned that things could change signalled openness to de-escalating the trade war this week, stating that high tariffs between the United States and China are not alternative markets include India, Latin America and Southeast Asia but discussions have barely begun, industry sources said. Air India is seen among potential bidders on behalf of low-cost unit Air India experts warned that carrying out the threat to divert jets to other buyers would not be like throwing a switch. Finding new customers after planes have been built "can be a costly endeavour", industry publication Leeham News say many components, such as cabins, are picked by airlines and switching configurations could cost millions of dollars. Doing so may also create a tangle of contractual commitments and need the co-operation of the original its part, China has urged Washington to abandon the tariffs but its airlines are seen as hungry for new planes to meet demand and satisfy domestic aircraft age restrictions."This will be extremely complicated. Everyone is flexing muscle but nobody completely has the upper hand," said a senior aircraft finance industry source, asking not to be tripBoeing's public stand follows a threat from tariffs to the aerospace industry's decade-old duty-free trading status. Senior industry officials say, however, there is no clear evidence of a reported official Chinese government ban on US move to repatriate and re-market jets stands in contrast to a build-up seen during an almost five-year import freeze on 737 MAX jets into China and previous trade tensions."We're not going to continue to build aircraft for customers who will not take them," Ortberg told jets ferried to China in March for delivery to Xiamen Airlines returned to Boeing in Seattle in the past week. A third 737 MAX flew from Boeing's Zhoushan completion centre near Shanghai to the U.S. territory of Guam on Thursday, Flightradar24 data is one of the stops Boeing delivery flights make on the 5,000-mile (8,000-km) journey across the third plane was initially built for Air China , according to Aviation Flights Group. The flag carrier did not respond to a request for had been ferried from Seattle on April 5, in the period between Trump first announcing tariffs on China and Beijing starting to enforce its own ramped-up tariffs on U.S. says China represents around 10% of its backlog of commercial planes. It has been losing market share to European rival Airbus in recent years. Boeing had planned to deliver around 50 new planes to China over the rest of this year, West said. It is studying options for re-marketing 41 already built or in production.
New Straits Times
24-04-2025
- Business
- New Straits Times
Boeing ready to resell jets as tariffs hit China trade
SEOUL/PARIS: Boeing is looking to resell potentially dozens of planes locked out of China by tariffs after repatriating a third jet to the United States rather than store it without willing buyers. The move to prevent a repeat of the costly build-up of undelivered jets seen during past fluctuations in Chinese imports comes as the planemaker redoubles efforts to save cash and pay off debt by selling off part of its services business. Boeing took the rare step of publicly flagging the potential aircraft sale during an analyst call on Wednesday, saying there would be no shortage of buyers in a tight jet market. "Customers are calling, asking for additional airplanes," CFO Brian West said. Such negotiations are usually kept tightly under wraps. "Due to the tariffs, many of our customers in China have indicated that they will not take delivery," CEO Kelly Ortberg said during the call. Industry sources said the comments were seen as a message to Beijing and Washington that the tariff war between the world's two largest economies was set to impose a heavy cost as airlines try to renew fleets and Boeing recovers from internal crises. US President Donald Trump this month raised baseline tariffs on Chinese imports to 145 per cent. In retaliation, China imposed a 125 per cent tariff on US goods. However, West cautioned that things could change quickly. Washington signalled openness to de-escalating the trade war this week, stating that high tariffs between the United States and China are not sustainable. Potential new customers include India or other fast-growing markets like Latin America and Southeast Asia but discussions have barely begun, industry sources said. But finding new customers after planes have been built "can be a costly endeavour", industry publication Leeham News warned. Experts say many components, such as cabins, are picked by airlines and switching to a new configuration can cost millions of dollars. Doing so may also create a tangle of contractual commitments and need the co-operation of the original buyer. Ortberg said China was the only country where Boeing was facing this issue. "We're not going to continue to build aircraft for customers who will not take them," Ortberg said. RETURN TRIP Boeing's public stand follows a threat from tariffs to the aerospace industry's decade-old duty-free trading status. Senior industry officials say, however, there is no clear evidence of a reported official Chinese government ban on US jets. The move to repatriate and re-market jets stands in contrast to a build-up seen during an almost five-year import freeze on 737 MAX jets into China and previous trade tensions. Two jets that had been ferried to China in March for delivery to Xiamen Airlines returned to Boeing's production hub in Seattle in the past week. A third 737 MAX flew from Boeing's Zhoushan completion centre near Shanghai to the US territory of Guam on Thursday, Flightradar24 data showed. Guam is one of the stops Boeing delivery flights make on the 5,000-mile (8,000-km) journey across the Pacific. The third plane was initially built for Air China , according to Aviation Flights Group. The flag carrier did not respond to a request for comment. It had been ferried from Seattle on April 5, in the period between Trump first announcing tariffs on China and Beijing starting to enforce its own ramped-up tariffs on US goods. Boeing says China represents around 10 per cent of its backlog of commercial planes. It has been losing market share to rival European planemaker Airbus in recent years. Boeing had planned to deliver around 50 new planes to China over the rest of the year, West said. It is studying options for re-marketing 41 already built or in production. Hovering in the background is Airbus, though it is unclear how the US-China rift might affect Boeing's arch-rival. Airbus has been in on-off negotiations for at least a year to try to grab a huge order of up to 500 jets, though China tends to tread carefully over all major purchase decisions during times of geopolitical uncertainty, industry sources said.
Business Times
24-04-2025
- Business
- Business Times
Boeing ready to resell jets as tariffs hit China trade
[SEOUL/PARIS] Boeing is looking to resell potentially dozens of planes locked out of China by tariffs after repatriating a third jet to the US rather than store it without willing buyers. The move to prevent a repeat of the costly build-up of undelivered jets seen during past fluctuations in Chinese imports comes as the planemaker redoubles efforts to save cash and pay off debt by selling off part of its services business. Boeing took the rare step of publicly flagging the potential aircraft sale during an analyst call on Wednesday (Apr 23), saying there would be no shortage of buyers in a tight jet market. 'Customers are calling, asking for additional airplanes,' CFO Brian West said. Such negotiations are usually kept tightly under wraps. 'Due to the tariffs, many of our customers in China have indicated that they will not take delivery,' CEO Kelly Ortberg said during the call. Industry sources said the comments were seen as a message to Beijing and Washington that the tariff war between the world's two largest economies was set to impose a heavy cost as airlines try to renew fleets and Boeing recovers from internal crises. US President Donald Trump this month raised baseline tariffs on Chinese imports to 145 per cent. In retaliation, China imposed a 125 per cent tariff on US goods. However, West cautioned that things could change quickly. Washington signalled openness to de-escalating the trade war this week, stating that high tariffs between the US and China are not sustainable. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Potential new customers include India or other fast-growing markets like Latin America and South-east Asia but discussions have barely begun, industry sources said. But finding new customers after planes have been built 'can be a costly endeavour', industry publication Leeham News warned. Experts say many components, such as cabins, are picked by airlines and switching to a new configuration can cost millions of US dollars. Doing so may also create a tangle of contractual commitments and need the co-operation of the original buyer. Ortberg said China was the only country where Boeing was facing this issue. 'We're not going to continue to build aircraft for customers who will not take them,' Ortberg said. Return trip Boeing's public stand follows a threat from tariffs to the aerospace industry's decade-old duty-free trading status. Senior industry officials say, however, there is no clear evidence of a reported official Chinese government ban on US jets. The move to repatriate and re-market jets stands in contrast to a build-up seen during an almost five-year import freeze on 737 MAX jets into China and previous trade tensions. Two jets that had been ferried to China in March for delivery to Xiamen Airlines returned to Boeing's production hub in Seattle in the past week. A third 737 MAX flew from Boeing's Zhoushan completion centre near Shanghai to the US territory of Guam on Thursday, Flightradar24 data showed. Guam is one of the stops Boeing delivery flights make on the 8,000-km journey across the Pacific. The third plane was initially built for Air China, according to Aviation Flights Group. The flag carrier did not respond to a request for comment. It had been ferried from Seattle on Apr 5, in the period between Trump first announcing tariffs on China and Beijing starting to enforce its own ramped-up tariffs on US goods. Boeing says China represents around 10 per cent of its backlog of commercial planes. It has been losing market share to rival European planemaker Airbus in recent years. Boeing had planned to deliver around 50 new planes to China over the rest of the year, West said. It is studying options for re-marketing 41 already built or in production. Hovering in the background is Airbus, though it is unclear how the US-China rift might affect Boeing's arch-rival. Airbus has been in on-off negotiations for at least a year to try to grab a huge order of up to 500 jets, though China tends to tread carefully over all major purchase decisions during times of geopolitical uncertainty, industry sources said. Airbus said it never comments on commercial discussions that may or may not be happening. REUTERS
