U.S. Treasury Secretary Scott Bessent criticized Boeing Co (NYSE:BA) on Wednesday, arguing that the aerospace giant’s focus on stock buybacks over research and development has left the company “crippled for several years” despite its historic reputation.
Boeing has faced ongoing challenges that have undermined investor confidence and complicated operations. The company continues to deal with quality-control issues, repeated safety audits, and mounting delays in key production programs.
Last year, Boeing raised $24 billion through new share sales to strengthen cash reserves but indicated that some R&D investments might be delayed.
Bessent’s comments followed remarks from U.S. Commerce Secretary Howard Lutnick, who said the Trump administration is considering potential government stakes in defense contractors, including Lockheed Martin Corporation (NYSE:LMT).
In an interview with Fox Business, the Treasury Secretary clarified that a government stake in NVIDIA Corporation (NASDAQ:NVDA) is “not on the table”, while highlighting other strategic sectors, such as shipbuilding, as potential investment areas.
Despite the criticism, Boeing’s latest financial results showed signs of recovery. The company’s quarterly loss was cut by more than half, falling well below analyst expectations, while revenue increased 35% to $22.75 billion, exceeding forecasts of $21.84 billion.
Analysts called it one of Boeing’s cleanest quarters in recent years, noting that both earnings per share and free cash flow beat estimates. Free cash outflow improved to $2.3 billion, down from $4.33 billion in the same period last year.
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