Boeing's $8.4 Billion Deal Is Bleeding Red Ink

Impact · against what's priced in

The discovery of unidentified liabilities at Spirit AeroSystems creates a new financial drag on Boeing, further undermining the prospect of margin recovery. While the market was already skeptical of Boeing's path to profitability, these new costs directly challenge the company's recent return to positive free cash flow.

BA−0.30

Challenges what's priced in

The price assumes

The return to positive free cash flow

The market currently values Boeing based on a recent return to positive free cash flow; the discovery of large, unidentified liabilities from the Spirit acquisition threatens this fragile stability and increases the risk of new cash outflows.

What BA's price assumes · Sep 3

• BA▲2913%
• m and a
• aerospace
• SPR
• aviation
• liabilities
• spirit aerosystems

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