Boeing's CFO predicts a surge in 737 and 787 deliveries next year, sending stock soaring 7%.
The optimism comes as the company looks to 2026, with CFO Jay Malave stating that deliveries will increase. This follows a challenging period for Boeing, marked by a door plug blowout in January 2024 and subsequent scrutiny. However, the company is now seeing positive changes, including reduced quarterly losses and a strong delivery pace in October, putting it on track for its highest annual delivery total since 2018.
Malave highlights the impact of higher productivity, expecting cash margins to improve significantly through 2030. The bolstered deliveries will also drive cash flow, with positive free cash flow expected in the billions in the 'low single digits'. This is a significant shift for Boeing, which hasn't turned an annual profit since 2018.
The Federal Aviation Administration's lifting of restrictions has allowed Boeing to sign off on 737 Max and 787 Dreamliner planes, further boosting confidence in the company's future.
