- Boeing shares fell 6% after CEO Kelly Ortberg flagged continued headwinds on the 737 and 787 production ramps and a further 777X certification delay. The 777X program is already seven years behind schedule.
- Ortberg said the 737 ramp has yet to stabilize at 47 aircraft per month, with in-house wing production the main bottleneck. Bank of America noted the broader supply chain is holding up and Boeing has plans to address it.
- 777X certification testing is now expected to slip into 2027 due to a pending approval for a more durable seal on the GE9X engine supplied by GE Aerospace. Boeing maintained first deliveries remain on track for next year, in line with BofA's estimate of zero 777X deliveries in 2026 and 10 in 2027.
- Boeing expects 737 MAX 10 certification very soon. That variant makes up 30% of the 737 backlog and is a key free cash flow driver; BofA's 2026 forecast of 519 737 deliveries is unchanged.
- Bank of America said the selloff is overdone, noting the turnaround was never going to be a straight line, and identified a potential SPEEA union strike as the bigger near-term risk with the contract expiring October 6.
Quotes
“the market reaction overdone”
“Boeing's turnaround was never going to follow a straight line”
“very soon”