Boeing CEO Says 737 MAX Production Not Stable at 47/Month, Stock Slides 3.7%
BA is trading near its 52-week low of $176.77 (14% above the low) on elevated volume (2.3× avg).
Summary
Boeing shares fell 3.7% to $210.96 after CEO Kelly Ortberg told a Morgan Stanley conference that 737 MAX production is 'not stable at 47 a month' and stabilization is taking longer than expected, with wing production a key issue. The Wall Street Journal reports that Boeing's commercial delays threaten to clip its wings. This is a fresh, specific update on the production ramp that investors have been watching closely, following the Q2 earnings report in July that showed a narrower loss but included a $280 million charge on the VC-25B program. The production hiccup matters because Boeing needs to hit roughly 670 deliveries in 2026 to generate about $2 billion in free cash flow, and any delay threatens that target. The stock is now down 13% over the past month, and this news adds to concerns about the company's ability to meet its delivery and cash flow goals.
At the time of this announcement, BA was trading at $201.95 on NYSE in the Manufacturing sector, with a market capitalization of approximately $159.6B. 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: Dow Jones Newswires.