Post Content
Boeing beat estimates on Wednesday and the stock moved higher, which is not something that has been easy to say about this company for a very long time.
The numbers: revenue of $22.22 billion against a $21.78 billion estimate, a loss of just 20 cents a share against an expected loss of 83 cents, and a net loss for the quarter of $7 million. For context, Boeing lost $31 million in the same quarter a year ago. The commercial aircraft unit delivered 143 planes, up 10% year over year, on revenue of $9.2 billion. Defense grew 21% to $7.6 billion. Services grew 6%. The 737 Max is rolling out at roughly 42 units a month (and, we assume, assembled properly). Every major line moved in the right direction.
The remaining watch items are real. The FAA still controls any production increases above the current Max rate. The 737 Max 7 and Max 10 variants are still awaiting certification, with deliveries not expected until 2027. The commercial unit is growing and still losing money from operations. None of that is resolved… yet.
But the direction is right, and that brings us to Kelly Ortberg. The engineer-turned-fixer took the Boeing CEO job in August 2024, inheriting the most troubled cockpit in American manufacturing after years of safety crises, manufacturing failures, a door plug that blew off a commercial aircraft mid-flight, and billions in losses that made the company a recurring feature in congressional hearings. He sent employees a note Wednesday that said “when we work as a team, it’s incredible what we can do as a company.” That is the kind of sentence that sounds generic until you remember what he walked into.
Ortberg is not a showman. He is an engineer running a turnaround by making the bad quarters less bad until the good ones arrive. Wednesday was a good quarter.
-
Boeing (BA) — The company beat revenue and earnings estimates, reduced its net loss, and saw its stock move higher, indicating a positive operational trajectory.
-
Spirit AeroSystems (SPR) — As a key supplier of fuselages for the 737 MAX, increased production rates for this aircraft directly benefit Spirit AeroSystems through higher demand for its components.
-
Safran (SAF.PA) — Through its CFM International joint venture, Safran supplies engines for the 737 MAX, meaning increased production rates lead to more engine orders and component sales.
-
GE Aerospace (GE) — As a partner in CFM International, GE Aerospace benefits from increased 737 MAX production through higher demand for its aircraft engines.
-
Honeywell (HON) — As a supplier of avionics and other systems for Boeing aircraft, increased production rates for the 737 MAX and other models drive higher component sales.
-
Parker Hannifin (PH) — Supplies flight control and hydraulic systems to Boeing, and increased aircraft production translates to higher demand for its specialized components.
-
Aerospace & Defense Manufacturing — Boeing’s improved financial performance and increased deliveries signal a strengthening in a major segment of this industry.
-
Aircraft Parts & Components Manufacturing — Higher production rates for Boeing’s commercial aircraft, particularly the 737 MAX, directly increase demand for parts from its supply chain.
-
United States — Boeing is a significant American manufacturer, and its improved performance contributes positively to U.S. industrial output and employment.
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our #1 pick. Tap here.
-
Airbus (AIR.PA) — While a direct competitor to Boeing, the article focuses on Boeing’s internal turnaround and specific aircraft models, making the immediate impact on Airbus mixed or unclear.
-
Delta Air Lines (DAL) — As a major customer of Boeing, more reliable production is positive, but ongoing certification delays for new 737 Max variants mean continued uncertainty for fleet planning.
-
United Airlines (UAL) — Similar to other major airlines, United benefits from Boeing’s operational improvements but faces delays in receiving new 737 Max variants due to certification issues.
-
American Airlines (AAL) — While improved Boeing production is a long-term positive, the immediate impact is tempered by the FAA’s control over production increases and certification delays for new models.
-
Southwest Airlines (LUV) — A significant operator of the 737 MAX, Southwest benefits from more stable production but is also impacted by the slow certification process for new variants.
-
Airlines — Boeing’s improved production is a positive for future fleet expansion, but persistent regulatory oversight and certification delays for new aircraft models create ongoing planning challenges.
-
Short-term Investor Confidence Boost — Boeing’s better-than-expected earnings and positive operational commentary will likely sustain investor confidence in the company’s turnaround efforts, potentially leading to continued stock stability or modest gains. Confidence: High.
-
Medium-term Supply Chain Stability — Increased and more predictable 737 MAX production rates, even if FAA-controlled, will provide greater stability and order visibility for Boeing’s key suppliers. This reduces uncertainty for companies like Spirit AeroSystems and Safran. Confidence: Medium.
-
Long-term Airline Fleet Modernization Delays — The continued delays in certification for the 737 MAX 7 and MAX 10 variants, with deliveries not expected until 2027, will prolong the wait for airlines seeking to modernize their fleets with these specific, more efficient models. This could impact their operational planning and fuel efficiency goals. Confidence: High.
-
Medium-term Enhanced Regulatory Scrutiny — The FAA’s continued control over production increases and certification processes for Boeing’s new variants indicates sustained high-level regulatory oversight. This could lead to more rigorous and potentially slower approval processes for all new aircraft models across the industry. Confidence: High.
-
Long-term Competitive Landscape Shift — While Boeing’s turnaround is positive, the prolonged certification delays for new MAX variants could give competitors like Airbus an opportunity to gain market share in specific segments or secure more orders for their comparable aircraft models. Confidence: Medium.
↑ [Aerospace & Defense Stock Index] — Boeing’s positive earnings and stock performance will likely contribute to an upward trend in broader aerospace and defense sector indices.
→ [U.S. Manufacturing PMI] — While Boeing is a large manufacturer, its specific performance, while positive, is unlikely to significantly move the overall U.S. Manufacturing PMI in the short term, given its specific industry focus.
↑ [U.S. Industrial Production] — Boeing’s increased aircraft deliveries and defense revenue contribute positively to U.S. industrial output, indicating a slight upward pressure on this indicator.
→ [Global Air Travel Demand] — The article focuses on aircraft manufacturing and not directly on air travel demand, so the immediate impact on this indicator is neutral.
→ [U.S. Employment Rate (Manufacturing)] — While Boeing’s improved performance is good for its workforce, the article does not suggest a significant immediate hiring surge that would materially impact the broader U.S. manufacturing employment rate.
One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.
Terms and Privacy Policy