Boeing Q1 2025 Earnings Report

Boeing EPS Results

• Actual EPS: -$0.49
• Consensus EPS: -$1.39
• Beat/Miss: Beat by +$0.90
• One Year Ago EPS: -$1.13

Boeing Revenue Results

• Actual Revenue: $19.50 billion
• Expected Revenue: $19.57 billion
• Beat/Miss: Missed by -$70.99 million
• YoY Revenue Growth: +17.70%

Boeing Announcement Details

• Quarter: Q1 2025
• Date: 4/23/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, April 23, 2025
• Conference Call Time: 10:30AM ET

Boeing (NYSE:BA) is the world’s largest manufacturer of airplanes and commands more than 50% of the market in some channels and categories. The company and its family of subsidiaries design, develops, manufacture, sell, service, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and related services worldwide. The company operates through four segments including Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital providing products and services to end-users in 150 countries.

Boeing got its start in 1910 when William E. Boeing developed a love for aircraft. Soon after he takes his first plane ride which leads him to build a hangar and begin construction of his first plane. The onset of WWI helped spur the company’s growth but business was cut drastically in its wake. The start of WWII was another milestone for the company and one that led to its current position of dominance. The company was incorporated in 1916 and is based in Chicago, Illinois. Boeing employs over 140,000 people in 65 countries making it one of the most diverse employers on the planet.

The Commercial Airplanes segment is built around the iconic 7-series which includes the 737, 747, and 787. The segment provides commercial jet aircraft for passenger and cargo requirements, as well as fleet support services for regional, national, and international air carriers and logistics and freight companies. In terms of global volume, the company estimates about 90% of all air freight is carried aboard one of its jets. This segment also includes the Dreamliner family of planes. The Dreamliner is a game-changing airplane for many carriers as it opens up the potential for new one-stop destinations because of its capacity and range.

The Defense, Space & Security segment develops and manufactures a range of systems including manned and unmanned aircraft, missiles, missile defense systems, satellites, communications equipment, and intelligence systems for governments. Among the many iconic brands within this segment are the AH-64 Apache, Air Force One, B-52, C-17 Globemaster, Chinook, F/A-18, and the V-22 Osprey VTOL aircraft used by the Marines.

The Global Services segment offers a range of products and services that include supply chain and logistics management, engineering, maintenance, upgrades, conversions, spare parts, pilot and maintenance training, technical and maintenance documents, and data analytics to its commercial and defense customers.

Boeing is also a leader in innovation, leveraging its many decades and avenues of experience to further aerospace and defense technology. Among the many innovations is the MQ-25 Stingray which will be the world’s first autonomous aircraft. The Stingray is only one of many areas of research that also include drones and undersea vehicles.

 

Boeing Q1 2025 Earnings Call Transcript

Presentation

[Operator]

Thank you for standing by. Good day, everyone, and welcome to the Boeing Company's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Please be advised that today's call is being recorded. The management discussion and slide presentation plus the analyst question and answer session are being broadcast live over the Internet.

[Operator]

At this time, I am turning the call over to Mr. Matt Welch, Vice President of Investor Relations, for opening remarks and introductions. Mr. Welch, please go ahead.

[Matthew Welch, VP - Investor Relations at The Boeing Company]

Thank you, and good morning, everyone. Welcome to Boeing's quarterly earnings call. With me today are Kelly Ortberg, Boeing's President and Chief Executive Officer and Brian West, Boeing's Executive Vice President and Chief Financial Officer. This quarter's webcast, earnings release and presentation, which include relevant disclosures and non GAAP reconciliations, are available on our website. Today's discussion includes forward looking statements that are subject to risks and uncertainty, including the ones described in our SEC filings.

[Matthew Welch, VP - Investor Relations at The Boeing Company]

As always, we will leave time at the end of the call for analyst questions. With that, I will turn the call over to Kelly Ortberg.

[Kelly Ortberg, President & CEO at The Boeing Company]

Thanks, Pat, and thanks to everyone for joining in today's call. Let me start out by saying that we had a really solid quarter of performance across the business, and I'm pleased to report that our recovery plan is in full swing and showing signs that it's being effective. Albeit early, I do like what I'm seeing. In BCA, we continue to implement our safety management system and remain on schedule with our safety and quality plan that we've established with the FAA. The key performance indicators that we're using to measure our production stability continue to progress, and we delivered 130 airplanes in the quarter, which was better than our internal plan.

[Kelly Ortberg, President & CEO at The Boeing Company]

I want to remind you that we planned the ramp up conservatively so that we had some capacity to deal with unknown challenges. In BDS, we had improved performance on our fixed price development programs and held our EACs for the quarter. We continue to make progress on our active management approach on the programs to improve performance and reduce our future EAC risks. And of course, winning the F-forty seven program was a transformational accomplishment. To be selected the contractor for the world's first sixth generation fighter is a testament to our focused investment in some pretty difficult time and to our dedicated team.

[Kelly Ortberg, President & CEO at The Boeing Company]

This will secure our fighter franchise for decades to come. And our BGS business continued to deliver strong results, and we reached a milestone event by delivering our one hundred and seven sixty seven freighter conversion. So let me dig a little deeper into our four point plan for our recovery. Recall from previous calls that I highlighted four key areas. The first, stabilizing our business second, improving the development program execution third, changing our culture and fourth, building our new future.

[Kelly Ortberg, President & CEO at The Boeing Company]

So for stabilizing our business, our balance sheet has been an important focus. The equity raise at the end of last year was sized to provide us the ability to restore our production system to help. With the better than expected delivery performance, we naturally had less strain on cash in the first quarter, so we continue to be on solid footing here. As we announced yesterday, the expected divestiture of portions of our Digital Aviation Solutions business will also provide a significant cash infusion. The key to cash generation will be continued progress on the seven thirty seven MAX ramp.

[Kelly Ortberg, President & CEO at The Boeing Company]

We're currently producing in the low 30s per month and expect that we'll get to the 38 per month cap over the next few months. We'll ensure that the KPIs are showing a stable production system and then request an increase to 42 per month with the FAA later this year. We stayed very close to the new Department of Transportation and FAA leadership, and we remain aligned on the criteria to move to the next rate. If you look back before the strike last fall, we've seen about a 50% reduction in traveled work and a 25% reduction in rework hours on the seven thirty seven line. So the changes we've made to strengthen our quality system are delivering results.

[Kelly Ortberg, President & CEO at The Boeing Company]

Even more importantly, almost every customer I talk with report an improvement to the quality of the airplanes. On July, we continue to produce at five per month, and I'm pleased to report that we've completed the work on the last joint verification airplane in Everett, which now allows us to close our shadow factory and redeploy the people and facilities dedicated to that work. We're poised to move to seven per month this year provided our KPIs indicate a stable production system, and they're currently looking very good. As we highlighted last quarter, we continue to work through seat certification issues affecting some deliveries, and I expect this will be a challenge for us for the balance of the year. With the current cash balance and the production ramp status, I feel we are well on our way to stabilizing the business even in the face of the tariff situation, which I'll address in a moment.

[Kelly Ortberg, President & CEO at The Boeing Company]

Now let me switch to the next priority, which is improving the development program execution. As I mentioned, a quarter with EAC stability in defense is a good start, but our efforts run deeper than that. During the last quarter, I mentioned that we had reached an MOA with the customer on the T7 program for which we termed active management. And we've since completed our first two incentive milestones associated with that agreement. On VC-25B, we continue to work with the customer to revise the program plan to allow for an earlier first delivery while maintaining our focus on safety and quality.

[Kelly Ortberg, President & CEO at The Boeing Company]

And we recently transferred our MQ-twenty five aircraft to our new production facility in Illinois to begin final assembly, which is the last production step before we move to ground and flight test later this year. And this next quarter will be an important one for us as we begin to baseline the performance of our F-forty seven plan. On commercial development programs, we reached authorization from the FAA to expand the 777X flight test activities to include additional aerodynamics, brakes, and engines. The aircraft are flying daily and performing well in flight testing. Along with the 777X, the seven thirty seven-seven, and the seven thirty seven-ten continue with their certification programs, and there is no change to our previously shared certification timeline on any of the commercial programs.

[Kelly Ortberg, President & CEO at The Boeing Company]

So while there's still a tremendous amount of work to do across all of our development programs, I am seeing an improved sense of urgency around the baseline management and risk management on these programs. Now the third area of focus is changing the culture at Boeing, and we've made some good progress there as well. In the quarter, we had a series of employee meetings talking specifically about culture change. We formed an enterprise working group to help us refresh our values and behaviors. And we've recently completed an all employee survey, the first in five years, and got very constructive feedback on what's needed to improve the future of our company.

[Kelly Ortberg, President & CEO at The Boeing Company]

We've introduced the new values and behaviors to the entire organization, and we'll be incorporating those into our new performance management system, our leadership training and leadership selection criteria. Our people are passionate about the culture change, so I really wanna seize the moment to make the necessary changes within the company. Now the last area to discuss is building our future. The planned divestiture of portions of our digital aviation solutions business is an example of the portfolio streamlining that I highlighted on earlier calls. There are a couple more steps that we are considering in this regard to help us keep focus on the right products and capabilities for Boeing's future.

[Kelly Ortberg, President & CEO at The Boeing Company]

And obviously, the F-forty seven win is a key step for building our future, cementing our franchise in the fighter business. So that brings me to the current tariff environment and the impact to our plan. I would break this down into two categories: input tariffs that affect our cost to manufacture our products and then the potential impact of retaliatory tariffs like those we are seeing in China. Brian will walk you through the financials, but the input tariffs incurred in the first quarter were immaterial and we really didn't see any impact to deliveries in the first quarter. Much of our supply chain is based in The United States and many of our imports from Canada and Mexico are exempt under the USMCA agreement.

[Kelly Ortberg, President & CEO at The Boeing Company]

We do have suppliers in countries subject to the new U. S. Tariffs, most notably in Japan and Italy, where our suppliers do significant structures work on our wide body airplanes. We are currently paying the 10% tariff on those components, but we should recover tariff costs for those aircraft that are subsequently exported, which is a large portion of our wide bodies. I hope over time that these tariffs can be resolved through negotiated agreements, but until that happens, we will have to manage our way through these increased input costs.

[Kelly Ortberg, President & CEO at The Boeing Company]

The other issue is impact of potential retaliatory tariffs from other countries, which could affect our ability to deliver aircraft. The only region that we have an issue with aircraft delivery today is China. And due to the tariffs, many of our customers in China have indicated they will not take delivery. Given the uncertainty, we're taking a very straightforward approach to dealing with these deliveries. We have approximately 50 China deliveries in our plan for the balance of the year.

[Kelly Ortberg, President & CEO at The Boeing Company]

We're in close communication with our China customers and we're actively assessing options for remarketing already built or in process airplanes. And for the nine airplanes not yet in the production system, we're engaged with our customers to understand their intentions for taking delivery. And if necessary, we have the ability to assign those positions to other customers. It's an unfortunate situation, but we have many customers who want near term deliveries, so we plan to redirect the supply to the stable demand. And we're not going to continue to build aircraft for customers who will not take them.

[Kelly Ortberg, President & CEO at The Boeing Company]

We've bounded our exposure and until we get more clarity, we're going to do our best to keep the China situation from impacting our production flow. We've put in place a conservative recovery plan this year anticipating some perturbations or risk. So I feel really good about our overall plan for the year even though I expect the China situation will take away some of the headroom we've built with our strong first quarter deliveries at BCA. We continue to work this situation proactively with the administration, and it's clear that they understand the importance of the aerospace industry to The U. S.

[Kelly Ortberg, President & CEO at The Boeing Company]

Economy and the role that Boeing plays as a top US exporter. So before I wrap up my prepared remarks, I wanna recognize and thank our employees for their work in the quarter. We've really had a good start to the year, and I'm glad we put a conservative plan together that'll allow us to deal with the tariffs. Let me also give a special shout out to Matt Welch, is moving on to his new role as VCA CFO. He's done a great job for us.

[Kelly Ortberg, President & CEO at The Boeing Company]

So congratulations, and thanks, Matt, for all you've done. Now let me hand it over to Brian to detail the operating results before we take your questions. Brian?

[Brian West, EVP and CFO at The Boeing Company]

Thanks, Kelly, and good morning, everyone. Let's start with the total company financial performance for the quarter. Revenue was $19,500,000,000 up 18%, primarily driven by higher commercial delivery volume. The core loss per share of $0.49 was a significant improvement compared to last year, driven by higher commercial deliveries and improved operational performance across the business. Free cash flow was a usage of $2,300,000,000 in the quarter, reflecting higher commercial deliveries and a working capital usage that improved compared to both the prior year and quarter.

[Brian West, EVP and CFO at The Boeing Company]

Our free cash flow was better than expectations shared last month driven by volume and favorable working capital timing. These financial results reflect only tariffs enacted as of March 31, which was not material. Turning to the next page. I'll cover BCA. BCA delivered 130 airplanes in the quarter.

[Brian West, EVP and CFO at The Boeing Company]

Revenue was $8,100,000,000 and operating margin was minus 6.6%, primarily reflecting higher 07/30/7777 deliveries as well as lower period costs. BCA booked two twenty one net orders in the quarter. Seven seventy seven-9s and twenty seven eighty seven-ten airplanes for Korean Air and fifty seven thirty seven-eight airplanes for Boca. Backlog in the quarter ended at $460,000,000,000 which was up more than $25,000,000,000 sequentially. This includes more than 5,600 airplanes that translates over seven years of production, and importantly, the seven thirty seven and seven eighty seven are sold firm into the next decade.

[Brian West, EVP and CFO at The Boeing Company]

Now I'll give more color on the key programs. The seven thirty seven program delivered a hundred and five airplanes in the quarter, including 33 in March. On production, the factory gradually increased rate during the quarter, and monthly production was in the low 30s in March. Importantly, the operational KPIs continue to progress, and we still expect to be in a position to go to 38 per month over the next few months. Spirit continues to improve the quality and flow of fuselages, which sets us up well for the reintegration, and the deal is expected to close around midyear.

[Brian West, EVP and CFO at The Boeing Company]

More broadly on the master schedule, we continue to make adjustments as needed and manage supplier by supplier based on inventory levels. Over the past year, our buffer inventory has grown to promote stability across our production system. As production stabilizes and rates increase over time, we plan to deliberately return buffer inventory to more normal levels. Today, have about thirty seven thirty seven-8s built prior to 2023, which is down 25 from year end and includes 25 airplanes for customers in China. We still expect to complete the rework on these airplanes and shut down the shadow factory by midyear.

[Brian West, EVP and CFO at The Boeing Company]

On the '7 and '10, inventory levels were stable at approximately 35 airplanes and certification timelines are unchanged. On July, we delivered 13 airplanes in the quarter, generally in line with expectations outlined on our last earnings call. The program continued to stabilize production at five per month in the quarter, and we remain intent on demonstrating stability in the production system and supply chain prior to making the next rate increase to seven over the next few months. Today, we have about 20 airplanes in inventory built prior to 2023 that required rework, down five from year end. Four of these 20 are for customers in China.

[Brian West, EVP and CFO at The Boeing Company]

Importantly, we finished rework and shut down the shadow factory in the quarter and expect to deliver about half of the remaining airplanes this year. Finally, on the 777X, the program took another important step in its certification timeline as it received approval from the FAA to expand flight testing activities. We'll continue to file the lead of the FAA as we progress through the certification process and still expect first delivery in 2026. 777X inventory was up approximately $800,000,000 in the quarter and will continue to grow as we move towards entering service as we previously shared. Moving on to the next page and BDS.

[Brian West, EVP and CFO at The Boeing Company]

BDS booked $4,000,000,000 in orders during the quarter and its backlog ended at $62,000,000,000 Importantly in the quarter, BDS was selected by the U. S. Air Force to design, build and deliver its next generation fighter aircraft, BF-forty seven. This order was not included on our first quarter backlog pending the completion of the source selection and evaluation review process. Revenue was $6,300,000,000 down 9% on planned lower volume, including the impact from commercial derivatives associated with the production restart.

[Brian West, EVP and CFO at The Boeing Company]

BDS delivered 26 aircraft in the quarter. Operating margin was plus 2.5%, up 30 basis points compared to last year and reflected stabilizing operational performance in the quarter. We made important progress in 1Q and the game plan is to get BDS back to high single digit margins over time. Our core business remains solid, representing approximately 60% of our revenue and performing in the mid to high single digit margin range. The demand for these products remains very strong, supported by the threat environment confronting our nation and our allies.

[Brian West, EVP and CFO at The Boeing Company]

The roughly 25% of the portfolio is primarily comprised of fire and satellite programs. Operationally performance improved in the quarter, which drove favorable margin trends. Lastly, on our fixed price development programs that represent the remaining 15% of revenue, we continue to work to stabilize and mature these programs. This quarter's results reflected stabilizing operational performance and we remain focused on retiring risk each quarter and ultimately delivering these mission critical capabilities to our customers. During the quarter, the MC25 program successfully transported the first engineering development model aircraft to the new production facility in Illinois where it began final assembly, the last production step before ground and flight testing begin later this year.

[Brian West, EVP and CFO at The Boeing Company]

On the T-7A, we achieved the first two EMD performance milestones outlined in the MOA that was finalized with the U. S. Air Force in January. This continues to be an important example of how we are working with our customers to find better overall outcomes for both parties. Overall, the defense portfolio is well positioned for the future and we still expect the business to return to historical performance levels as we continue to stabilize production, execute on development programs and transition to new contracts with tighter underwriting standards.

[Brian West, EVP and CFO at The Boeing Company]

Moving on to the next page and BGS. BGS continued to perform well delivering very strong financial results in the quarter. The business received $5,000,000,000 in orders and the backlog ended at $22,000,000,000 Revenue was $5,100,000,000 stable year over year. Operating margin was 18.6% in the quarter, up 40 basis points compared to last year on favorable performance and mix with both our commercial and government businesses delivering double digit margins. In the quarter BGS delivered the one hundred seven sixty seven-three hundred Boeing converted freighter to SF Airlines and received a modification contract from the U.

[Brian West, EVP and CFO at The Boeing Company]

S. Air Force to integrate electronic warfare systems for the F-fifteen Eagle. It remains a terrific long term franchise focused on profitable, capital efficient service offerings and continues to execute very well. Turning to the next page, I'll cover cash and debt. Cash and marketable securities ended at $23,700,000,000 primarily reflecting the free cash flow usage in the quarter.

[Brian West, EVP and CFO at The Boeing Company]

Debt balance ended at $53,600,000,000 down $300,000,000 due to the paydown of maturing debt and leaving $550,000,000 of debt maturities remaining in the year. The company maintains access to $10,000,000,000 of revolving credit facilities, all of which remain undrawn. We remain committed to managing the balance sheet in a prudent manner with two main objectives. First, prioritize the investment grade rating and second, allow the factory and supply chain to stabilize. As you saw yesterday, we entered into an agreement to sell portions of our digital aviation solutions business for $10,550,000,000 which is an important component of our strategy to focus on our core businesses and strengthen the balance sheet.

[Brian West, EVP and CFO at The Boeing Company]

Stepping back, let me provide some additional context on a macro backdrop before getting into the free cash flow outlook. We continue to closely monitor recent policy developments and believe that the administration understands the aerospace industry's importance to our economy broadly and U. S. Manufacturing jobs specifically and is focused on keeping our U. S.

[Brian West, EVP and CFO at The Boeing Company]

Industrial base globally competitive for the long term. Given our position as a significant U. S. Exporter, free trade policy across commercial aerospace remains very important to us. As noted recently on the supply side, roughly 80% of our annual commercial supply chain spend goes directly to U.

[Brian West, EVP and CFO at The Boeing Company]

S. Based suppliers, and we'll work closely with all our suppliers to ensure continuity of supply and pursue options to mitigate cost pressures. Conversely, on the demand side, about 70% of our commercial deliveries this year are planned for customers outside The U. S. And importantly, the company has a large and diverse backlog of over $05,000,000,000,000 with our key commercial programs sold out into the next decade.

[Brian West, EVP and CFO at The Boeing Company]

Specifically on China, it represents approximately 10% of our commercial backlog. And if we need to redirect supply to more stable demand, the strong market backdrop across the rest of the world still supports our planned production rate increases. Regarding free cash flow, we set a conservative plan for the year and had a strong start operationally, which we believe puts us in a position to largely offset any potential cash flow impact of China deliveries this year as well as higher expected input costs due to tariffs. Regarding deliveries, our plan for the rest of the year was to delivery roughly 50 airplanes to customers in China. There is strong demand for these airplanes, and we are actively assessing options should we need to redirect the 41 China airplanes that are already built or currently in production.

[Brian West, EVP and CFO at The Boeing Company]

We will continue to monitor the demand situation, and if tariff related impacts expand beyond China, we would expect to see additional pressure. Broadly, the markets we serve continue to be significant and our backlog of more than $05,000,000,000,000 demonstrates the strength of our core product portfolio. Long term, these fundamentals underpin our confidence in managing the business with a long term view built on safety, quality, and delivering for our customers. And before I open it up for questions, I too would like to thank Matt Welch for his partnership over almost four years, and we all know they weren't easy four years. He's a terrific Boeing leader, and we wish him all the best in his new promotion, and we welcome Eric Hill into the IR role.

[Brian West, EVP and CFO at The Boeing Company]

With that, we'll open up for questions.

[Operator]

Thank you. We will now begin the question and answer session. Your first question comes from the line of Doug Harnett from Bernstein. Your line is open.

[Douglas Harned, Managing Director at Bernstein]

Good morning. Thank you.

[Kelly Ortberg, President & CEO at The Boeing Company]

Doug.

[Douglas Harned, Managing Director at Bernstein]

Kelly, if we go back to

[Douglas Harned, Managing Director at Bernstein]

the first Trump administration, the negotiations on subsidies across The Atlantic led effectively to a zero tariff environment for aviation. And, you know, when you look at the recent tariffs announced and under consideration, I mean, we would say they do nothing positive for the industry. Expect if Guillaume Faury were on this call, the two of you would probably be in violent agreement on this. But and you commented earlier that the administration understands the importance of the industry, but can you describe how you and others are interacting with Washington to get around, to get out of this, tariff environment? And and what are you hearing back?

[Douglas Harned, Managing Director at Bernstein]

What's your sense on how this might evolve in The US and even in Europe and China based on your interactions there?

[Kelly Ortberg, President & CEO at The Boeing Company]

Yeah, Doug. Well, obviously, it's an important topic right now and very dynamic topic. I don't think a day goes by where we aren't engaged with someone in the administration, including cabinets, you know, cabinet secretaries and up to POTUS himself. So this is a dynamic environment. As you as you point out, we've had the luxury of operating for decades, actually, since the 1979 civil air aviation agreement on large aircraft in a tariff free environment.

[Kelly Ortberg, President & CEO at The Boeing Company]

So we're spending a lot of time making sure the administration understands the implications of of either short term or long term tariffs on our not just our company, but the overall aviation industry here in The US. I would just tell you that that they understand. They know this is extremely important to our trade, to the trade balance. Aircraft are, you know, such a significant part of our trade surplus. And if we see, markets closing, that's gonna be a big, a big challenge for us.

[Kelly Ortberg, President & CEO at The Boeing Company]

So look, I'm very hopeful that we get to some negotiated agreements here, and that we can move forward. Right now, China's our only problem. And as we said in the prepared remarks, we're gonna work our tail off to make sure the China issue doesn't implicate our recovery and and particularly our our stability in our production system. So we'll deal with that. Customers are calling, asking for additional airplanes.

[Kelly Ortberg, President & CEO at The Boeing Company]

So this is really gonna be just a short term challenge for us to either either have China reverse course and take the airplanes or get us to to in a position to remarket those airplanes. And as you know, to remarket them, we'll have to do some things like painting them and things like that. But having said that, look, I can't predict where this is gonna go. I don't know any better than than anybody reporting. We do hear signs that indicate that negotiated settlements are there are opportunities for that.

[Kelly Ortberg, President & CEO at The Boeing Company]

I just don't know the timing. And so, again, we're gonna take the actions we need to make sure if this takes a while, we don't get into a situation where it it impacts our recovery. The one thing that we have to watch is is is to make sure we don't see more countries in a in a similar boat as where we are with China. You know, we're watching the EU. You made the comment on our competitor, and I think you I would agree with you wholeheartedly that that both Guillaume and I would would welcome a non tariff environment for both of us.

[Kelly Ortberg, President & CEO at The Boeing Company]

This isn't good for for either company to be in this situation or or the industry. So, hey, we're working through it. I can't tell you the timing of when this is going to all get resolved, but I can tell you we're gonna take proactive action and and manage our way through it.

[Douglas Harned, Managing Director at Bernstein]

Very good. Thank you.

[Operator]

Your next question comes from the line of Myles Walton from Wolfe Research. Your line is open.

[Myles Walton, Managing Director at Wolfe Research LLC]

Thanks. Good morning and congrats on the move, Matt. You survived a lot. So Brian, I think in January, were expecting deliveries in the 03/07 in the in the low April and maybe 80 or so on the July. Does that still that framework still holds with the 50 aircraft from China not not going to China specifically as Kelly mentioned?

[Brian West, EVP and CFO at The Boeing Company]

Thanks, Myles. On the 37, yes, we still think that's the right ballpark of 400. You had a nice strong start to the year operationally, and that should allow offset most of any delivery pressure that would come from the 25 airplanes that are already built in inventory and around six that are in production airplanes that we plan to deliver this year. And for the second quarter specifically, we expect to deliver in the high twenties for April, and the quarter, should be more or less in line with, one q ex China, which is in the low to mid nineties. On the a seven, you're also in the right ballpark.

[Brian West, EVP and CFO at The Boeing Company]

You know, also are having a nice start to the year, and we expect to ramp to seven per month in the next few months. And China would only be a handful of airplanes impacted. So we like we like the ballpark that you mentioned. And for 2Q, we've already delivered five so far in April, and we expect 2Q to be a bit higher than where we were at in 4Q twenty four deliveries. So things are going pretty pretty well.

[Brian West, EVP and CFO at The Boeing Company]

I think what's really important is any delivery timing won't disrupt our production rate increases on these programs. And we're making really good progress operationally, and we're tracking to achieve the right milestones that Kelly mentioned on both programs in the coming months.

[Myles Walton, Managing Director at Wolfe Research LLC]

All right. Thank you.

[Operator]

Your next question comes from the line of Seth Seifman from JPMorgan. Your line is open.

[Seth Seifman, Executive Director at JP Morgan]

Hey. Thanks very much, and good morning, everyone, and congratulations, Matt. Just wanted to ask a follow-up question on tariffs on the cost side. I guess if there's anything you could say to kind of size if we're thinking about the two impacts being kind of the China impact and the cost impact, maybe kind of sizing potentially those two impacts. And then talking about the drawback process on the cost side, do you need to maybe manage the supply chain a little bit on the cost side if there are suppliers down in the chain who, you know, can handle this as well as, you know, some of the larger and and, more well capitalized suppliers?

[Seth Seifman, Executive Director at JP Morgan]

And and also how you deal with, you know, I gather you're gonna get pushed from certain suppliers to kind of push through tariffs that they have with different surcharges and, anything you

[Seth Seifman, Executive Director at JP Morgan]

can say about that process?

[Kelly Ortberg, President & CEO at The Boeing Company]

Seth, let me start with the kind of the process, and then I'll let Brian kind of quantify it. So as you point out, we do have the duty drawback opportunity. And as you know, about 80% of our airplanes go outside are delivered outside of The U. S. So we have the opportunity for those duties that we pay, those tariffs that we pay to to recover that when we deliver the aircraft.

[Kelly Ortberg, President & CEO at The Boeing Company]

Now, you know, it creates a little bit of a cash flow timing, issue that we'll have to work through. We are actively working as well with the supply chain because they don't have that opportunity. Their point of delivery is to us, and that we, in turn, deliver, the product outside of The US. So we are working to see if we can't, if in effect, allow them to piggyback on our duty drawback. And and that that requires, you know, accounting processes to make sure we can track things.

[Kelly Ortberg, President & CEO at The Boeing Company]

And so we're working that right now. We do have some suppliers who've indicated they're gonna have some pricing increases associated with that, but it's not overly material, and we're working through that. The thing, I'm I'm really trying to make sure we're focused on is making sure that an argument over a 10%, tariff who's gonna pay doesn't turn into a continuity of supply, issue. So we we really need to make sure that that people are buying and bringing in the parts that that we're gonna need, and then we'll work through the the financial implications. I'll let Brian kinda quantify that for you.

[Brian West, EVP and CFO at The Boeing Company]

Yeah. Sure. So I think I'll start with the, supply chain input costs, and then I'll get to the China piece. On the supply chain side, the net annual impact of higher tariffs on our input costs is manageable. And within our plan, it's less than $500,000,000 annually.

[Brian West, EVP and CFO at The Boeing Company]

And here's how to think about some of the pieces in addition to what Kelly described. Yeah. We have elevated inventory levels that are all pre tariff. Aluminum and steel are typically 1% to 2% of the average cost of the airplane, which is virtually all US sourced. And with higher inventory levels and hedging strategies, that one to 2% is even lower in the current environment.

[Brian West, EVP and CFO at The Boeing Company]

We do both buys on behalf of our supply chain partners, and those could be subject to some price increases as tariffs move higher, that we can't pass along. But that's a very small amount of money, nothing to worry about. You know, as Kelly said, we do have this duty drawback opportunity to get us to that net, you know, a few hundred million dollars. And I would point out that we have a global trade and supply chain team that have decades of experience with tariffs and duty recovery. And when you're one of the world's biggest exporters, we really have a good handle on this.

[Brian West, EVP and CFO at The Boeing Company]

So we feel confident in some of the ways that we've been describing this. I'd also say that, keep in mind that over time, any input related costs will work its way through to price escalators. So it should mostly neutralize over time. And then in addition to what Kelly said about the suppliers, as you know, many are on fixed price life of program contracts where the importer does where importer record does pay the tariff. And as Kelly said, we're doing what we can to help them through this this situation.

[Brian West, EVP and CFO at The Boeing Company]

As it pertains to China specifically, you know, we talk about 50 or so airplanes that's you know, it could be north of a billion dollars. But as I said, it's all contemplated within a conservative plan that we put together. So we feel pretty good.

[Seth Seifman, Executive Director at JP Morgan]

Great. Thank you.

[Operator]

Your next question comes from the line of Scott Duschel from Deutsche Bank. Your line is open.

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

Hey, good morning. Brian, on the last call, you seem to reference that the free cash flow usage for the year will be somewhere in the 4,000,000,000 to $5,000,000,000 range. I guess, you give an update on how you're thinking about that specific range as well as some further characterization of the free cash flow cadence as we move through the year? Thank you.

[Brian West, EVP and CFO at The Boeing Company]

Sure. Thanks, Scott. Let me start with the second quarter. So we expect the second quarter to be roughly in line with the first quarter usage. And as we've said, we expect the second half free cash flow to turn positive and then accelerate as we exit the year driven by a few really important levers.

[Brian West, EVP and CFO at The Boeing Company]

The July production ramped to 38 per month and even potentially higher as we exit the year. Higher seven three seven delivery volume. We've got the seven eight seven production ramp to seven per month and also potentially higher as we exit the year. We have the higher seven eight seven delivery volume, and we have customer seats that will be favorable. And those are offset by a couple of things, higher investment levels, including the triple seven x and the potential impact of both China and this net impact from higher input costs from tariffs that we've So in terms of the range that you mentioned, we're not going to adjust that full year range right now.

[Brian West, EVP and CFO at The Boeing Company]

We're good with where it's at. We had a really good start to the year. We need to execute on the production rate increases, and we need more clarity on China and tariffs more broadly. So give us a little bit of time to see how things play out. The good news is that, as Kelly said, we deliberately built the year to account for some unknowns.

[Brian West, EVP and CFO at The Boeing Company]

We're still comfortable with the plan that we've outlined.

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

Appreciate it. Thank you.

[Operator]

Your next question comes from the line of Sheila Kahyaoglu from Jefferies. Your line is open.

[Sheila Kahyaoglu, Aerospace & Defense and Airlines Equity Research at Jefferies Financial Group]

Good morning, Kelly, Brian, and thank you, Matt, so much. So maybe just on that last thought, you know, assuming the skyline is largely intact outside of China and there's no demand impact with tariffs, how are we thinking that production ramps outside 2025 with the 3.7 and the 8.7 rates? And how you're watching the biggest risks in the supply chain in the master schedule and how that correlates to cash flow expectations as you continue to benefit from volume ramps, but also on time deliveries?

[Kelly Ortberg, President & CEO at The Boeing Company]

Actually, let me let me take the demand side, I'll let let Brian comment. So we don't see any change in the overall demand here. Our backlog is well over half a trillion. It's the everybody wants the aircraft. So, you know, we're gonna work through this China situation, maybe have to redeploy some aircraft, but we don't see any any pullback whatsoever, in demand for the aircraft.

[Kelly Ortberg, President & CEO at The Boeing Company]

So our rate increase plan is on remains unchanged. We'll go to 38 a month, here. We'll get to the stability, and then our first rate increase will be from 38 to 42. And then we'll do five per month increments after that. So 42 to 47, 40 seven to 52.

[Kelly Ortberg, President & CEO at The Boeing Company]

Those rate increases would be no earlier than probably six months in between. But, again, the it depends on each one will require that we have stable KPIs. And the more you move up the rate, the the more difficult it is to make sure you you maintain stable KPIs. So if we go to one of those rates and we need to stay there for a little longer to be mature, that's what we'll do. But I don't see any change in our long term rate plans.

[Kelly Ortberg, President & CEO at The Boeing Company]

All the KPIs on the on seven eight seven right now are all green, look good. You know, we'll make this, next rate increase in the coming months on July. And then there are for for future opportunities there. As you know, we've invested additional capital billion dollars here in our our Charleston facility. That's where we are today to expand our production capacity here.

[Kelly Ortberg, President & CEO at The Boeing Company]

So we definitely wanna get the 08/07 back up to double digit production rates. And and none of what we're seeing right now is not gonna solve those plans. And on the supply chain side, you know, as

[Brian West, EVP and CFO at The Boeing Company]

I mentioned, we have a lot of inventory, enough inventory that is there for us to, achieve the rates that Kelly's mentioning. And we've got really good alignment, with, our key suppliers, fuselages, engines. Everything looks pretty good. Yeah. We have to get through some discrete moments around this tariffs and ensuring the continuity of of delivery, which will work through as Kelly mentioned.

[Brian West, EVP and CFO at The Boeing Company]

But as we look a little further out, good alignment, plenty of inventory, feel pretty confident about the supply chain side of it.

[Sheila Kahyaoglu, Aerospace & Defense and Airlines Equity Research at Jefferies Financial Group]

Thank you.

[Operator]

Your next question comes from the line of Scott Marcus from Melius Research. Your line is open.

[Scott Mikus, Director – Aerospace, Defense & Space Research at Melius Research LLC]

Good morning.

[Kelly Ortberg, President & CEO at The Boeing Company]

Hey, Scott.

[Scott Mikus, Director – Aerospace, Defense & Space Research at Melius Research LLC]

Kelly, congrats on the f 47 win. I have a quick question there. There was a comment from the administration about the EMD phase being cost plus, but there were some competitively priced options for LRIP. So I'm just wondering, are those options fixed price? Do they have inflation escalators built into them?

[Scott Mikus, Director – Aerospace, Defense & Space Research at Melius Research LLC]

How should

[Scott Mikus, Director – Aerospace, Defense & Space Research at Melius Research LLC]

we be thinking about the risk from those options?

[Kelly Ortberg, President & CEO at The Boeing Company]

Yeah. Hey, Scott. On the f 47, we're we're not, we're not at liberty to to disclose anything relative to the contract structure beyond what the Air Force has said. So the only thing I can say is is what they've read what you've read there is is, is the extent of our disclosure. Clearly, we haven't come off our strategy of ensuring we're entering into the appropriate contract type for the appropriate type of work.

[Kelly Ortberg, President & CEO at The Boeing Company]

So I I wouldn't worry that we've signed up to, you know, to to undo risks like we've like we've done in some of our past fixed price programs. But that's about all I can say on that right now.

[Brian West, EVP and CFO at The Boeing Company]

All right. Thanks for taking the question.

[Operator]

Your next question comes from the line of David Streves from Barclays. Your line is open.

[David Strauss, MD - Equity Research at Barclays]

Good morning.

[Kelly Ortberg, President & CEO at The Boeing Company]

Hey, David.

[David Strauss, MD - Equity Research at Barclays]

Hey, Tilly. Could you maybe dig in a little bit more on the status of the six KPIs, specifically the progress you're seeing there? Guess, maybe three months ago, both on the MAX and the seven eighty seven, think you had highlighted. There was one on the seven eighty seven that was kind of out of line a little bit. If you could just touch on that.

[David Strauss, MD - Equity Research at Barclays]

And then, how you've gone about mitigating risk around Jenkintown, the fire there? And how do you feel like how you've got that kind of captured in the guidance as well? Thanks.

[Kelly Ortberg, President & CEO at The Boeing Company]

Okay. Hey. Look. On the KPIs, as I mentioned, on seven eighty seven, when we talked at the last earnings call, we had one of the one of the KPIs that was below threshold, and that was in final ticketing, the number of snags at final ticketing. That's all gone green.

[Kelly Ortberg, President & CEO at The Boeing Company]

So we're looking really good. The the eight seventeen has done a really, really nice job of focusing on that. We are still burning down some rework associated with prestrike level inventory aircraft. We're getting close to that on I switched to seven thirty seven now. And so we still have a little bit of work on one KPI, and that's on rework relative to the seven three seven max.

[Kelly Ortberg, President & CEO at The Boeing Company]

However, it's coming down the rework is coming down per our plan. So, you know, I feel pretty good that that as we continue to go through, you know, from the low thirties to 38, and we get the cleaner airplanes flowing through the factory, that will actually be green on all the all of our our metrics. So look, as I sit here right now, things really, really look good. We had as I said in my prepared remarks, we had secretary Duffy and the acting administrator, Chris Roschalou here in Seattle. They spent time out the floor talking to FAA people, talking to our our machinists, and and things things look pretty good.

[Kelly Ortberg, President & CEO at The Boeing Company]

I think we're really aligned on what we need to do to get to the rate increases. So so, you know, so far so good. We can't claim victory. We gotta we gotta get to 38 and and show stable performance there, But our plan seems to be working, and, you know, we'll make any adjustments we need to. Regarding the SPS fire, the team has done a very, very nice job of of reacting and jumping all over that issue.

[Kelly Ortberg, President & CEO at The Boeing Company]

And it's a combination of finding alternate source, requalifying, finding inventory, and getting it in the right place. And it's not just us, as you know. It's it's some of our major suppliers as well who this impacts. I think we're gonna be able to scramble our way through this. You know, I don't think we'll be at the inventory levels we want, but I don't see right now that any aircraft program is gonna be held up, over these fasteners.

[Kelly Ortberg, President & CEO at The Boeing Company]

The team every time I meet with them, they burned down the open, issues, to fewer and fewer, and it looks like we're gonna be able to manage our way through this. Now, you know, it's gonna be take a while to get this capacity back, into the system. So, we're gonna just have to stay diligent as we as we manage this and particularly as we ramp up in rates.

[Operator]

Your next question comes from the line of Noah Poponak from Goldman Sachs. Your line is open.

[Noah Poponak, Research Analyst at Goldman Sachs]

Hey, good morning everyone.

[Kelly Ortberg, President & CEO at The Boeing Company]

Hi, Noah. Hello.

[Noah Poponak, Research Analyst at Goldman Sachs]

Kelly, how did you reduce traveled work by 50% in a few months? And how did you have a positive defense margin despite the tanker news in the quarter? And and really, the the bigger picture question there is, you know, were some of these improvements inevitable with time, or or how much have you changed specifically since you've come on board with the blocking and tackling of the operating performance of the business? You've laid out how you're going to turn the battleship, but curious if you could talk about the shorter term simpler blocking and tackling improvements you've made. And I thought maybe those would be two that would be helpful to hear more about.

[Kelly Ortberg, President & CEO at The Boeing Company]

Yeah. So let me address the traveled work first, Noah. First of all, I don't build any airplanes, so the team's doing a great job. It's not me, but it's what the team is doing. And and we put in a new, a major new process in the in the way we're building the the aircraft.

[Kelly Ortberg, President & CEO at The Boeing Company]

For any, before we move the aircraft, and you know these are moving lines. So before we move the aircraft, we now have what we call a travel ready process. And what that requires that any work not done on station, any traveled work, has to be evaluated in a risk, safety risk assessment is done against that. And if the if it induces safety risk like we saw with the door blowout, we're not gonna move the airplane. And the last I saw and I know these numbers are probably higher right now, but the last I saw the numbers, we had implemented that process on 800 airplane moves, and we had stopped the airplanes 200 of those eight eight hundred times.

[Kelly Ortberg, President & CEO at The Boeing Company]

So long winded, that's how we're not getting the traveled work. We're not traveling the airplanes. And, so if the work is not done, we're getting it done. We're holding the airplanes and getting it done and being much more disciplined. Now I'll also say our supply chain is in much better shape, than it was prestrike, so we're we're not dealing with near the number of shortages, that we were, prior to that.

[Kelly Ortberg, President & CEO at The Boeing Company]

Look. On the defense side, it it is around, you know, this this new focus on, working with our customers to get these contracts so that they're win win. We've made real good progress as I've talked about, particularly, like, on the t seven, d c 25, the Starliner. I think we've got all these programs now well contained in terms of what our our ETC now, you know, I'm not I'm not, claiming victory here yet. We've got a lot of work to do on the ETCs on a lot of these programs.

[Kelly Ortberg, President & CEO at The Boeing Company]

But I do think our disciplined cost risk management and active management with our customers to get to a win win, on these programs is, you know, is is helping. And, obviously, you know, our goal here is to get our defense business back up to, you know, high single digit kind of performing, digit business, and there's no reason I see we can't do that. So this is a good step, but we gotta continue to have good EAC, performance to to make that happen. And, you know, the team's really focused on doing that.

[Brian West, EVP and CFO at The Boeing Company]

And on

[Brian West, EVP and CFO at The Boeing Company]

the tanker specifically, Noah, that crack on the leading edge, the team identified it very quickly, determined that it was in the safety of flight issue. The population that they had to go do, was small. The rework, they could get to that very quickly. So it really wasn't a big deal. So it didn't disrupt the quarter at all.

[Noah Poponak, Research Analyst at Goldman Sachs]

Okay. I appreciate all the detail. And, Matt, congrats on the promotion, and thanks for all the help over the years.

[Matthew Welch, VP - Investor Relations at The Boeing Company]

Thanks a lot.

[Operator]

Your next question comes from the line of Peter Arment from Baird. Your line is open.

[Peter Arment, Senior Research Analyst at Robert W. Baird & Co]

Yes, thanks. Hi, Kelly and Brian. Congrats, Matt. Hey, Kelly. I guess maybe just to wrap up a little bit on there's a lot of questions around around the rate breaks.

[Peter Arment, Senior Research Analyst at Robert W. Baird & Co]

But when you get to 38 and obviously, you're you're the FAA is reviewing the KPIs with you. How do we think about that when you're when you're moving beyond, you know, rate 42 or rate 47? Is is that something you're you're doing in concert with the FAA? I know you mentioned, the shield that you're looking for stability first on all those. Is it just keeping them in the loop or are

[Peter Arment, Senior Research Analyst at Robert W. Baird & Co]

they more involved in the process?

[Peter Arment, Senior Research Analyst at Robert W. Baird & Co]

Appreciate it.

[Kelly Ortberg, President & CEO at The Boeing Company]

No. Our our current plan is that unless until the plans change, we will go through the same process with each rate break. So the metrics, they have access to the metrics. We have a digital dashboard. They look at them on a daily basis.

[Kelly Ortberg, President & CEO at The Boeing Company]

So it's not just, you know, looking at at, you know, at one point in time. They're regularly looking on these. So that's what that's why I said when we go from 42 to 47, if we're not stable for a couple of months, we'll stay at that rate until we get the stability. And so we think the fastest we'd want to go would be about six months in between rate breaks. But it really we do have to have a stable production system.

[Kelly Ortberg, President & CEO at The Boeing Company]

They're gonna be the same same KPIs that we're using we're using on the initial rate break. I said this last quarter, and I I think it's gonna still be true, is that I think the first rate break will be maybe take the longest just because it's not something we've collectively done before. I think we've got a good plan to do it, but that may take a little while to get through that plan. Then I think it's gonna be much more standard work. And we've always had a process with the FAA.

[Kelly Ortberg, President & CEO at The Boeing Company]

We call it capstone reviews where we do a major FAA review before we go higher in a rate in a rate increase. So, you know, this isn't really a new thing to sit down with the FAA as we go through rate increases. We just have a new process here to do it.

[Peter Arment, Senior Research Analyst at Robert W. Baird & Co]

Thanks for all the color. Appreciate it.

[Operator]

Your next question comes from the line of Robert Stallard from Vertical Research. Your line is open.

[Robert Stallard, Partner at Vertical Research Partners]

Thanks so much. Good morning.

[Brian West, EVP and CFO at The Boeing Company]

Hey, Rob.

[Robert Stallard, Partner at Vertical Research Partners]

And congrats, Matt, on the move. Quick question on the sale you announced yesterday. Brian, as we've given some idea of what the impact could be on future EBIT and free cash flow dilution as this exits the business And what you expect your net cash proceeds to be after tax from the sale? Thank you.

[Brian West, EVP and CFO at The Boeing Company]

Thanks, Rob. So on the margin question, this is not going to disrupt our long term view as to be in the mid double digit margins for the business. It's just it's just not very big impact. So I'm not worried about that at all, and the service business will continue to perform in that, grow in the, you know, mid single digits revenue and deliver nice mid teen margins. So that'll be consistent.

[Brian West, EVP and CFO at The Boeing Company]

This is nothing to do with that. In terms of the deal itself, the, there's not a lot of leakage on this. So you can think about it being, 10,000,000,000 net. So it's gonna be pretty close to the full purchase price. And then I'd also, add that the way this this deal got done is that it's all cash.

[Brian West, EVP and CFO at The Boeing Company]

So it's important to know that we're not gonna take any risk between signing and closing, which I think is, good good for the company and good to get this behind us.

[Robert Stallard, Partner at Vertical Research Partners]

Okay. Thanks so much.

[Matthew Welch, VP - Investor Relations at The Boeing Company]

And Rob, we have time for one final question.

[Operator]

Certainly. Your final question comes from the line of Richard Safran from Seaport Research Partners. Your line is open.

[Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners]

Thanks. Kelly, Brian, good morning. Matt, congrats. I think you guys have talked several times about your portfolio shaping. I thought maybe you'd update us on where the Jepsen sale leaves you as you look forward.

[Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners]

Is there anything else that you're considering on any other items on the list? And on Jepsen specifically, I think it's a pretty important digital asset. So I was just wondering how you think about where to set the perimeter perimeter of the deal. I was wondering if you kept what you needed to ensure, you have a strong digital capability going forward. Thanks.

[Kelly Ortberg, President & CEO at The Boeing Company]

Yeah. So, that's a good question. We extraordinarily long time looking at the boundary of this and ensuring that that we're retaining access to everything we need for the future of our aircraft. You're you're right. It's a great digital asset.

[Kelly Ortberg, President & CEO at The Boeing Company]

We'll continue to do business with Jefferson even post divestitures. It's a great it's a great asset. But I can assure you that all the things that we need for the success of our cockpits and our our future future aircraft support and maintenance, we've retained either access to that or it was outside of the perimeter of of what we're talking about in the divestiture. We do have a couple more, Rich, that we're looking at. I would say that they're probably not gonna be as big as Jeff, but we've got a couple more things that I'd like to action in the portfolio.

[Kelly Ortberg, President & CEO at The Boeing Company]

I am done with the review. So, you know, I kinda have our mind on on what we need to do here. I I think the a couple more, smaller, activities are probably in the cards, and we'll just see have to see how those play out over time.

[Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners]

Well, thanks very much.

[Kelly Ortberg, President & CEO at The Boeing Company]

Thanks, Rich.

[Operator]

And that concludes The Boeing Company's first quarter twenty twenty five earnings conference call. Thank you for joining.

Participants

Executives

• Matthew Welch, VP - Investor Relations
• Kelly Ortberg, President & CEO
• Brian West, EVP and CFO

Analysts

• Douglas Harned, Managing Director at Bernstein
• Myles Walton, Managing Director at Wolfe Research LLC
• Seth Seifman, Executive Director at JP Morgan
• Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank
• Sheila Kahyaoglu, Aerospace & Defense and Airlines Equity Research at Jefferies Financial Group
• Scott Mikus, Director – Aerospace, Defense & Space Research at Melius Research LLC
• David Strauss, MD - Equity Research at Barclays
• Noah Poponak, Research Analyst at Goldman Sachs
• Peter Arment, Senior Research Analyst at Robert W. Baird & Co
• Robert Stallard, Partner at Vertical Research Partners
• Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners