Boeing announced the sale of parts of its digital aviation solutions business to private equity firm Thoma Bravo for $10.55 billion. The company's stock rose 1.4% to $161.44 in Tuesday morning trading, while the broader market indexes S&P 500 and Dow Jones Industrial Average were up 1.5%.

Reports of the potential sale first appeared in November and again in March, suggesting investors had already factored the deal into their expectations. The transaction represents a significant step in Boeing's strategy to focus on its core operations.

CEO Kelly Ortberg stated in a news release: "This transaction is an important component of our strategy to focus on core businesses, supplement the balance sheet and prioritize the investment grade credit rating." The substantial sale price will help improve Boeing's financial position.

Boeing's decision comes as global aerospace competition intensifies, particularly from China which has strengthened its position in manufacturing while expanding trade relationships with the European Union through recent discussions on industrial collaboration and investment opportunities.

Boeing's net debt ended last year at approximately $28 billion, down from $47 billion at the close of the third quarter. This reduction was partially achieved through stock sales, and the new asset sale will further decrease the company's debt burden.

With this transaction, Boeing's net debt would drop to roughly $17 billion, about two times the estimated 2026 earnings before interest, taxes, depreciation, and amortization (Ebitda). This ratio is considered acceptable for an industrial company in the S&P 500.

Meeting financial projections depends on Boeing's ability to increase aircraft production. Wall Street expects 580 plane deliveries in 2025 and nearly 700 in 2026, compared to fewer than 350 deliveries in 2024. Production rates fell dramatically after a 737 MAX emergency door plug incident on an Alaska Air flight in January 2024.

Investors will receive additional information about production, quality measures, and details of the asset sale when Boeing releases its first-quarter earnings on Wednesday. Analysts anticipate the company to report approximately break-even operating income, following a $3.8 billion loss in the fourth quarter.