Cash flow exceeds expectations. JP Morgan maintains a "hold" rating for Boeing Company (BA.US) bonds.

Partly due to improvements in operational efficiency and an increase in commercial aircraft deliveries, Boeing Company (BA.US) exceeded expectations in the second quarter, with cash flow surpassing the company's guidance. JPMorgan maintains a "hold" rating on Boeing Company bonds. JPMorgan points out that while trade policy is an important investment consideration, Boeing Company's growing backlog of orders, its primarily U.S.-based manufacturing footprint, and favorable treatment in current trade negotiations for the aerospace and defense industry make them confident about the risks. For patient investors, JPMorgan believes that the long-term fair value of Boeing Company's 30-year bonds' risk is T+100 basis points, as the company's credit condition is expected to improve over time. Other key points: Boeing Company now feels better about tariff costs. The company previously expected annual tariff-related costs to be less than $500 million; 737 production rate reached 38 aircraft per month this quarter. Boeing Company plans to stabilize this rate at 42 aircraft per month by later in 2025, pending FAA approval; The company believes it can exceed the initial 400 737 delivery forecast for 2025, and recently increased 787 production rates from 5 to 7 aircraft per month; Boeing Company expects free cash flow in the third quarter to be roughly in line with the second quarter's -$200 million (excluding DOJ payments); Boeing Company expects full-year 2025 free cash flow to be -$30 billion (compared to market expectations of -$34 billion), including $700 million in U.S. Department of Justice payments.