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Boeing is trading modestly higher following its fiscal Q4 report, as investors looked past a messy core EPS figure and focused on sharply higher revenue, improving operational momentum, and a constructive tone from management. Core EPS was distorted by a $9.6 bln gain related to the sale of the Digital Aviation Solutions business, which increased EPS by $11.83, making comparisons to consensus less meaningful.

• Revenue surged 57.1% yr/yr to $23.95 bln, exceeding expectations and reflecting improved operational performance and higher commercial delivery volumes.
• The stock initially sold off following the release but recovered as investors responded positively to a fairly bullish earnings call.
• Management stated it has laid the foundation for a turnaround, citing stronger performance and record-breaking backlog levels, while acknowledging that the company has not fully turned the corner yet.
• The 737 program increased its production rate to 42 aircraft per month and received FAA approval to begin the final phase of 737-10 certification flight testing.
• The 787 program began transitioning production to 8 aircraft per month, with a goal of reaching 10 per month later this year, driven by exceptionally strong demand.
• The 777X program entered the Type Inspection Authorization 3 phase of 777-9 certification flight testing, and Boeing continues to target first delivery in 2027.
• On the call, Boeing disclosed a potential durability issue identified during a recent inspection of the 777 engine, and is working with GE to determine root cause and corrective actions. Despite the engine issue, demand for the 777X remains strong, and management reiterated confidence that the aircraft will become the company's next flagship program.

Briefing.com Analyst Insight:

Boeing's quarter was less about clean EPS execution and more about evidence of improving fundamentals and restored credibility. While the headline earnings number was skewed by a sizable one-time gain, the strength in revenue growth and delivery volumes reinforced the view that operations are moving in the right direction. Investors were encouraged by the confident tone of management, progress across key aircraft programs, and growing production rates, even as lingering certification and technical risks remain. The 777X engine durability issue bears monitoring, but overall demand, backlog strength, and operational momentum support the narrative that Boeing's multi-year turnaround is gaining traction, albeit with continued execution risk.