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FY2025 is a genuine inflection: Boeing posted $2.23B net income, its first annual profit after four straight loss years ($-4.20B, $-4.93B, $-2.22B and a brutal $-11.8B from FY2021–24), as revenue jumped 34.5% to $89.5B. Part of that surge is mechanical — the IAM 751 strike (≈30,000 employees) that paused 737/767/777/777X production only resolved in December 2024 and ramped through 2025, and the December 2025 Spirit AeroSystems acquisition (≈$4.7B in stock, which lifted the share count 4.7%) folds in fuselage revenue. But the demand backdrop is real: MD&A states 'both single-aisle and wide-body demand remain above current industry supply levels,' with improving supply-chain performance. As a structural duopolist in 100+ seat aircraft, Boeing has the franchise to convert that backlog if it can execute.

The catch is quality and the balance sheet. Margins are razor-thin for the size of the recovery — gross and operating margin both 4.8%, net margin 2.5% — reflecting lingering program charges and the FAA-capped 737 line imposed after the January 2024 door-plug accident. The business still consumes cash: operating cash flow was just $1.06B against $2.94B of capex, so free cash flow is negative. The capital structure is fragile — stockholders' equity of only $5.45B against $163B of liabilities (29.85x), long-term debt of $53.8B, and a current portion of debt that spiked 562% to $8.46B while cash fell 21% to $10.9B (cushioned by the $10.55B Digital Aviation divestiture). The headline 41% ROE is an artifact of that razor-thin equity base, not return quality, and the GAAP pension is $4.3B underfunded.