Boeing Looks to Raise Up to $25 Billion as Cash Woes Swirl
Boeing stock is higher Tuesday after the aerospace giant filed to raise as much as $25 billion and entered a credit agreement worth $10 billion.


Boeing (BA) filed to raise up to $25 billion through a combination of stock and debt offerings and entered into a $10 billion supplemental credit agreement with lenders. The move comes as the company attempts to shore up its balance sheet amidst ongoing strikes at its West Coast factories.
While Boeing filed to raise up to $25 billion, analysts estimate that it needs to bring in at least $10 billion and $15 billion, according to Reuters. This would allow the company to maintain its credit ratings, which are just one notch above junk, it added.
"These are two prudent steps to support the company's access to liquidity," Boeing said in a statement to Reuters. "This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company's balance sheet over a three-year period."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Previously, Boeing was reportedly working with its advisers to raise at least $10 billion.
Boeing reports preliminary results and layoffs
On Friday, Boeing released its preliminary third-quarter results, which included a net loss of $9.97 per share, a cash burn of $1.3 billion and an ending balance of cash and marketable securities of $10.5 billion.
In a separate release, Boeing announced that it would reduce the size of its total workforce by roughly 10%, or about 17,000 people.
"Our business is in a difficult position, and it is hard to overstate the challenges we face together," said new Boeing CEO Kelly Ortberg in a statement. "Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term."
Is BA stock a buy, sell or hold?
Boeing has been one of the worst Dow Jones stocks in 2024, down nearly 42% for the year to date. Yet, Wall Street remains bullish on the the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for BA stock is $199.88, representing implied upside of nearly 32% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm UBS Global Research lowered its price target on BA stock to $215 from $220 but maintained its Buy rating after the preliminary results were released.
"Boeing announced preliminary Q3 results and a number of business and operational updates," wrote UBS analyst Gavin Parsons on October 14. "In short: we believe cost rightsizing and a narrower focus are necessary steps, but highlight the long road to recovery. Less cash burn in Q3 gives Boeing slightly more flexibility on liquidity than expected, but cost-out steps also suggest labor contract negotiations could extend."
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
13 Answers to Pressing Social Security Questions
From smart claiming strategies for couples to tips on maximizing your monthly check, we have advice that can help you.
-
Keep Tax Collectors at Bay with Muni Bond Funds
Municipal bonds can be good insurance against inflation — and interest is tax-free. But as with all investments, understanding risk is key.
-
Keep Tax Collectors at Bay with Muni Bond Funds
Municipal bonds can be good insurance against inflation — and interest is tax-free. But as with all investments, understanding risk is key.
-
Eight Tips From a Financial Caddie: How to Keep Your Retirement on the Fairway
Think of your financial adviser as a golf caddie — giving you the advice you need to nail the retirement course, avoiding financial bunkers and bogeys.
-
Just Sold Your Business? Avoid These Five Hasty Moves
If you've exited your business, financial advice is likely to be flooding in from all quarters. But wait until the dust settles before making any big moves.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
Should I Buy Stocks or Should I Buy Bonds Right Now?
Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.