Boeing Q1 FY12/25 Earnings Review

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In The End, Leverage Bites Everyone

by Alex King, CEO, Cestrian Capital Research, Inc

Want to know why Boeing just sold $10bn-worth of software assets to a private equity firm?

This is why:

You see that line labeled “short term debt”? The full title of which should be, "short-term and short-term portion of long-term debt”? As you can see it jumps up by a little shy of $7bn from Q4 last year, meaning that an additional $7bn-ish of debt just fell due to be paid during 2025. With $10bn in cash on the balance sheet and heavily negative cashflow, there are only two ways Boeing can reliably make that payment. One, issue new equity, to the consternation of all; or two, sell some stuff to free up cash. So they did the second thing. You can read the details here but in essence this is a $10.6bn all-cash sale due to close in 2025 which I would expect to encounter few if any anti-trust roadblocks. Assuming it closes, this will kick the “solvency” question down the road for year or so.

Let’s take a look at the rest of Boeing’s numbers, its valuation and stock charts.