U.S. Treasury chief criticizes Boeing strategy, says firm crippled for years

Investing.com -- U.S. Treasury Secretary Scott Bessent criticized Boeing Co (NYSE: BA) on Wednesday for prioritizing stock buybacks over research and development, arguing the aerospace giant has been crippled for several years despite once being a great company.

Boeing has long struggled with issues that have eroded investor confidence and strained its operations. The planemaker continues to grapple with quality-control lapses, repeated safety audits, and mounting production delays across key programs.

Last year, it raised $24 billion through new share sales to bolster cash reserves, but signaled that some R&D investments could be pushed back.

Bessent’s remarks came a day after U.S. Commerce Secretary Howard Lutnick said the Trump administration is weighing potential government stakes in defense contractors, including Lockheed Martin Corporation (NYSE: LMT).

The Treasury Secretary, in an interview with Fox Business, clarified that a government stake in NVIDIA Corporation (NASDAQ: NVDA) is “not on the table,” but pointed to other strategic industries, including shipbuilding, as possible areas for investment.

Despite the criticism, Boeing’s latest earnings showed signs of improvement. The company’s quarterly loss more than halved, coming in well below analyst expectations, while revenue jumped 35% to $22.75 billion, topping forecasts of $21.84 billion.

Analysts described the results as one of Boeing’s cleanest quarters in recent years, with earnings per share and free cash flow both beating estimates. The company also reported free cash outflow of $2.3 billion, a notable improvement from the $4.33 billion burned in the same period a year earlier.

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