Boeing rises premarket as CEO flags 737 bottleneck and 777X engine delay

  • Boeing said Renton wing production remains the main constraint on 737 output.
  • Boeing reached 47 monthly 737 aircraft but has not stabilized that production rate.
  • Boeing maintains its target for initial 777X deliveries in 2027.

Boeing shares rose 1.09% to $204.17 in Thursday premarket trading as investors weighed stronger broader equity futures against continuing constraints in its commercial-aircraft recovery. Chief Executive Kelly Ortberg said Boeing has reached a 737 production rate of 47 aircraft a month but has not stabilized at that level, with wing production in Renton remaining the main bottleneck. Boeing expects 737 MAX 10 certification very soon after completing flight tests, although documentation and regulatory review remain. The MAX 10 accounts for about 30% of the 737 backlog. The 777X program is awaiting completion of GE Aerospace's engine mid-seal certification plan before ETOPS testing can begin, and some testing could extend into next year even as Boeing maintains its target for 2027 initial deliveries. Engine deliveries are also slowing the planned increase in 787 output from eight to 10 aircraft monthly. Chief Financial Officer Jay Malave reaffirmed 2026 free-cash-flow guidance of $1 billion to $3 billion, centered on about $2 billion, while saying slower 737 and 787 ramps make results above the midpoint less likely. Ortberg also said Chinese officials had indicated plans to proceed with purchases, but Boeing had not received a previously reported roughly 200-aircraft order; future Chinese orders are expected to be announced incrementally by individual airlines.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.