- Boeing has acquired a $20 billion defense contract along with several billion dollars worth of orders for commercial airplanes.
- The firm is bouncing back from a challenging year in 2024, thanks to better manufacturing outputs and enhanced stock market performance.
- Experts believe that Boeing’s recent successes will enhance their cash flow, boost employee spirits, and improve retention of skilled workers.
Boeing might be finally trending upwards as it works hard to regain the trust and favor of both investors and customers.
Since January, the manufacturer has been operating at full capacity, landing a substantial defense contract with the U.S.
new F-47 fighter
jets and securing billions of dollars in new passenger aircraft orders.
The deliveries are also shaping up well. According to analysts,
post-strike 737 production
are present at greater than anticipated amounts during this initial quarter.
The victories in these two key business sectors are expected to aid in generating additional revenue, enhancing employee motivation, and securing and keeping engineering professionals as the firm strives to regain stability following a challenging period.
tough 2024
.
Boeing’s share price has surged approximately 16% within the last six months, almost recouping losses from a dip in March, despite the overall market conditions.
retracted due to worries about tariffs
And amid general economic unpredictability, shares are still notably lower than their peak in 2023.
The analysts seem upbeat, setting an average future price target of $196, which is roughly 10% higher than Wednesday’s closing price.
Obtaining additional aircraft orders and increasing production levels
On Wednesday, Korean Air completed its purchase agreement for 20 Boeing 777X airplanes. This announcement came after Japan Airlines and Malaysia Airlines placed their own orders: Japan Airlines ordered 17 new 737 MAX jets, while Malaysia Airlines requested as many as 60 of these aircraft.
Both models are
incredibly important for Boeing
The 777X is delayed by at least six years and is now anticipated to debut in 2026, while production of the 737 Max remains limited to 38 units per month.
Nevertheless, these agreements contribute to Boeing’s substantial order backlog of over 6,000 aircraft and indicate continued customer trust.
aircraft deliveries slowed
in 2024.
During a January earnings call, CEO Kelly Ortberg, who assumed leadership in August, stated that Boeing might reach a
737 Max production
at a rate of 42 per month by the conclusion of the year, provided it fulfills the quality and safety standards set forth by federal agreements.
He likewise presented a strategy to shut down the 737 “shadow factory,” where completed aircraft undergo additional work.
fixes to quality issues
— which should further boost operational efficiency as workers can fully focus on the main assembly line.
Airlines’ clients seem satisfied with the advancements. During a February Barclays conference, United Airlines Chief Financial Officer Michael Leskinen expressed his confidence in the delivery timeline for the Max aircraft.
He mentioned that Boeing is performing an impressive task of reversing their situation and enhancing their reliability as a supplier.
A profitable new military agreement
On Friday, President Donald Trump stated that Boeing has been awarded a $20 billion contract to develop the next-generation U.S. Air Force fighter jets, known as the F-47s. These aircraft will be replacing the current F-22 Raptors.
Boeing beat out its
rival manufacturer Lockheed Martin
, responsible for producing the U.S.’s fifth-generation F-35 fighter. Since the announcement last Friday, Lockheed’s stock price has dropped approximately 6.5%.
JPMorgan analysts described the F-47 contract as a “boost” for Boeing’s beleaguered defense sector. The firm has previously faced setbacks with its KC-46 tanker project and delays.
Air Force One aircraft
.
They mentioned that the financial advantages were “evidently significant yet not enormous against the backdrop of a rejuvenated Boeing.” They also pointed out that the introduction of the F-47 could strengthen Boeing’s standing within the aerospace sector and aid in drawing talented individuals.
According to analysts at Melius, the new initiative was anticipated to enhance Boeing’s employee morale and assist the company in retaining “high-caliber engineering professionals.”
This might assist the company in rising above its current situation.
a cultural downturn triggered by the aftermath of aircraft quality problems
And an almost two-month-long labor strike. Ortberg has taken the lead, proposing measures such as having executives work on the production line.
We think Kelly Ortberg is the appropriate leader to steer Boeing back on track,” noted Melius analysts in a client update, despite his tenure being under one year. “By encouraging staff members to share candid critiques of the organization’s management and ethos, he can now make essential enhancements.
Correction — March 27, 2025: A previous version of this article incorrectly identified Brian West as United’s CFO. In fact, he serves as the CFO for Boeing, whereas Michael Leskinen holds the position at United.
If you liked this tale, make sure to follow
Business Insider
on MSN.
