Boeing Wins $100 Billion Qatar Airways Order for Widebody Jets

Qatar Airways’ landmark Boeing aircraft order signals strong recovery in global aviation demand and widebody jet market

Key Takeaways

• Wolfe Research raises Boeing price target to $250 despite 4% post-earnings decline, citing improved cash flow outlook and major new aircraft orders
• Boeing secures $100 billion Qatar Airways order for up to 210 widebody jets, including 120 787s and 30 777X aircraft with significant upfront deposits
• Cash burn projection improves to $3 billion in 2025 from previous estimate of $4-5 billion, beating consensus expectations by 15%

Introduction

Wolfe Research maintains its bullish stance on Boeing, raising the aerospace giant’s price target to $250 despite recent share weakness following second-quarter results. The investment firm argues that the 4% stock decline overlooks substantial improvements in Boeing’s cash flow projections and order book strength.

The upgraded target reflects confidence in Boeing’s operational turnaround, supported by major aircraft orders and sharply improved financial outlook. Boeing now expects significantly less cash burn than previously forecast, marking a notable shift in the company’s recovery trajectory.

Key Developments

Boeing exceeded second-quarter free cash flow projections by $2 billion, driven by robust aircraft deliveries and increased order activity. The company delivered 150 commercial aircraft in Q2 2025, representing a 63% year-over-year increase.

Recent slowdowns in 737 MAX deliveries stemmed from planned software upgrades rather than new manufacturing issues, according to Investing.com. This distinction suggests underlying production health continues improving across Boeing’s commercial aircraft programs.

Qatar Airways placed a transformative order for up to 210 widebody jets, with 150 aircraft being incremental to Boeing’s existing backlog. The deal includes 120 787 Dreamliners and 30 777X aircraft, valued at approximately $100 billion with significant upfront deposits.

Market Impact

Boeing shares fell following quarterly results despite beating revenue expectations with $22.7 billion, a 35% year-over-year increase. The company reported a core loss of $1.24 per share, better than the consensus loss estimate of $1.40.

Boeing stock has gained 23% over the past quarter and risen 24% year-to-date to $227.55, reflecting growing investor confidence in the recovery story. Analyst consensus remains bullish with an average price target of $229.68, suggesting 6.4% upside potential from current levels.

The post-earnings decline reflects concerns over weaker second-half guidance, certification delays for MAX 7 and 10 variants, and slower production ramp-up than anticipated. However, analysts view this weakness as temporary given the positive cash flow trajectory.

Strategic Insights

Boeing’s improved cash burn guidance signals meaningful progress in operational efficiency and working capital management. The company expects positive free cash flow in the fourth quarter after a projected $900 million outflow in Q3, partly due to a potential Department of Justice settlement.

The Qatar Airways order demonstrates renewed demand for widebody aircraft as global air travel recovers. This trend benefits Boeing’s higher-margin 787 and 777X programs, which generate superior returns compared to narrowbody aircraft.

Boeing currently produces 787 jets at seven per month and seeks regulatory approval to increase 737 production to 42 monthly units. These production increases are critical to achieving the company’s 10% margin target by 2026 and long-term $10 billion free cash flow goal.

Expert Opinions and Data

Wolfe Research emphasizes that recent stock weakness overlooks substantial improvements in Boeing’s cash flow, order book, and operational recovery. The firm maintains confidence in Boeing’s ability to achieve its ambitious financial targets despite near-term headwinds.

Redburn Atlantic sets an even more aggressive $275 price target, reflecting expectations for Boeing’s valuation re-rating if margin expansion goals are met. This target implies significant upside potential for investors willing to bet on the aerospace recovery.

Boeing maintains $23 billion in cash reserves against $53.3 billion in total debt, highlighting ongoing financial constraints. The company posted a net loss in Q2 2025, partly due to a $445 million DOJ settlement related to previous regulatory issues.

Conclusion

Boeing’s operational improvements and major new orders support analyst optimism despite recent share weakness. The company’s enhanced cash flow outlook and production recovery indicate meaningful progress in its turnaround efforts.

While regulatory scrutiny and supply chain challenges persist, Boeing’s strengthened order book and improved financial trajectory position the company for sustained recovery. The aerospace giant faces a critical period as it works to achieve positive free cash flow and meet ambitious margin expansion targets.