What Really Matters for Boeing: Building More Planes

Boeing's Future Hinges on Production Capacity

Boeing CEO Kelly Ortberg, speaking at the Bernstein Strategic Decisions conference, emphasized that the company's priority is to build more planes. Factors like rising oil prices, certification delays, and orders from China are secondary for investors in the short term.

Production Targets and FAA Approval

Ortberg announced that the Federal Aviation Administration (FAA) has allowed Boeing to produce 47 737 MAX jets per month, up from the previous cap of 42. The company plans to increase production to over 50 per month in the coming months and eventually exceed 60.

Defense and Commercial Orders

Although the defense segment lost $130 million in 2025, its backlog is at record levels. China's order for 200 jets is considered an 'initial tranche,' with more expected. Boeing's commercial airplane backlog extends well into the early 2030s.

Financial Outlook

Higher deliveries are key to profitability and free cash flow, which have eluded the company for years. Boeing used about $38 billion in cash from 2019 to 2025, but is expected to surpass its 2018 peak of 800 deliveries by 2028, reaching around 860.