The medium-term outlook is critical for (NYSE: BA) investors because nobody is buying the stock for what it is now, but rather what it could become. Management has long-established medium-term guidance, and investors are inevitably penciling it into valuations and monitoring the key milestones to hit it. Here's a look at what it is and some thoughts about what it means to the investment proposition.

Management laid out its 2025/2026 targets at its investor day presentation in November 2022. The key parts of the plan involve a multiyear increase in airplane production, notably the 737 narrowbody, and a significant increase in Boeing defense, space, and security (BDS) profit margins, leading to $12 billion in segment operating cash flow. After $2 billion in capital spending is taken out, Boeing expects $10 billion in free cash flow (FCF) in the 2025/2026 timeframe.

Three things stand out to me related to these goals and where it stands today:

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Source Fool.com