Boeing Pushes 737 Rate 52 to Late 2027 as Wing Bottleneck Persists
BA is trading near its 52-week low of $166.82 (1.1% above the low) on light trading volume (0.3× avg).
Summary
Boeing's 737 ramp is slipping. CEO Kelly Ortberg told the earnings call that planned wing-production process improvements 'flat out did not yield the flow savings,' so the next step up to rate 52 now targets the second half of 2027 instead of sooner. CFO Jay Malave said the delay at 47 per month means 2026 737 deliveries will come in shy of the 500-aircraft target, and Q3 commercial deliveries already fell to 161 from 171 in the prior quarter. The stock fell 10.69% to $168.18 Tuesday after a wider-than-expected adjusted loss of $0.34 per share on $24.19 billion of revenue, and it sits at a new 52-week low. Management still guides roughly $2 billion of free cash flow in 2026, about $3 billion in 2027 and $6 billion in 2028 before the $10 billion target in 2029, with first 777-9 delivery still expected in 2027 pending FAA certification and ETOPS testing.
At the time of this announcement, BA was trading at $168.59 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $133.2B. The 52-week trading range was $166.82 to $254.35. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.