Boeing CEO: 737 MAX Production Stabilization Taking Longer Than Expected
BA is trading near its 52-week low of $176.77 (15% above the low).
Summary
CEO Kelly Ortberg said stabilizing 737 MAX production at 47 jets per month is taking longer than expected, with plans to reach 52/month only after stabilization. He also said the 737-10 variant will be certified 'very soon,' though it is years behind schedule. This signals continued production challenges that could delay cash flow recovery and delivery targets. The 737-10 certification, if achieved, would unlock a key revenue stream, but the timing remains uncertain. Shares slid following the CEO's comments.
At the time of this announcement, BA was trading at $202.73 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $160.2B. The 52-week trading range was $176.77 to $254.35. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.