Boeing Is Poised to Close on Spirit Aero. Is It Still a Buy?[Featured](https://moneymorning.com/category/featured/) # Boeing Is Poised to Close on Spirit Aero. Is It Still a Buy?  by Rich Duprey  December 8, 2025  Share it: **Boeing** ( [BA](https://moneymorning.com/stocks/ba/)) has endured a brutal stretch of turbulence over the past five years, with a cascade of operational blunders eroding investor trust and slashing its stock price by 13%. The 787 Dreamliner's chronic production delays – stemming from fuselage defects and supply chain snarls – pushed deliveries back by years, costing billions and tarnishing the model's reputation. Then came the harrowing January 2024 incident where a door plug violently ejected midflight from a 737 Max 9, exposing shoddy quality control and sparking FAA groundings. Compounding these woes, Boeing's key supplier, **Spirit AeroSystems** ( [SPR](https://moneymorning.com/stocks/spr/)), has been a hotbed of defects, from misdrilled holes to faulty fuselages, further hampering output. Yet, amid turbulence, BA shares have clawed back strongly, surging 14% year-to-date in 2025 and a whopping 56% from April lows, buoyed by rebounding deliveries and defense wins. Now, the $4.7 billion all-stock acquisition of Spirit – greenlit by the FTC with divestitures to **Airbus** – is set to close imminently, potentially as soon as today, according to an **NYSE** notice suspending SPR trading. By internalizing Spirit's operations, Boeing aims to tighten quality oversight and stabilize its supply chain. But is BA stock a buy at this inflection point?  ## Boeing's Enduring Strength in a High-Flying Market Boeing remains an aerospace colossus, commanding a duopoly with Airbus in commercial jets, where global travel demand shows no signs of abating. Backlogs exceed 5,000 planes, fueled by post-pandemic recovery and emerging-market expansion, promising revenue streams for years. In defense, BA's portfolio – from F-15 fighters to satellite systems – anchors steady government contracts, insulating it from cyclical downturns. The Spirit deal, expected to close by year-end, could supercharge efficiencies, reducing defects and accelerating 737 Max production toward 50+ units monthly by 2026. Boeing projects positive free cash flow returning next year, with shares trading at a forward P/E of 35x – elevated but arguably justified by 10% to 15% annual earnings growth potential. If execution clicks, BA could hit $250 by mid-2026, a 20% upside from current levels, as supply chain fixes unlock pent-up orders. ## Vulnerabilities That Could Ground the Rally Yet, Boeing problems are legion. A culture that seemingly prioritizes cost-cutting over safety has invited relentless scrutiny, with FAA audits ongoing and a $1.1 billion DOJ settlement this year for past 737 Max crashes. Labor unrest has delayed Dreamliner deliveries, inflating a $635 billion backlog while burning cash. Geopolitical risks could also hike costs 5% to 10%. Integrating Spirit isn't risk-free either. Divestitures to Airbus might dilute synergies, and any quality slips could trigger new groundings, hurting shares. With debt at $44 billion, elevated interest rates amplify refinancing pressures, potentially capping multiples if recession bites. ## Bottom Line Tailwinds are pushing Boeing alone. Surging air travel, rising defense budgets, and the Spirit merger promise a "turnaround year," with Q3 revenue up 30% and deliveries jumping 38%. But Warren Buffett's timeless warning about investing in airlines – "the worst sort of business is one that grows rapidly, requires substantial capital to engender the growth, and then earns little or no money" – rings true here. Although not an airline, Boeing's capital-hungry model fits the bill, plagued by overruns and thin margins. Over the past decade, BA's has total return of just 56%, dwarfed by the **S&P 500**'s 291% gain. Yet it rarely beats the index, underscoring the problem: even if BA soars, passive market investing has proven safer. For risk-tolerant BA could be a buy, but for most, the broad market remains the steadier flight path. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Facebook This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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