Boeing's CFO predicts a surge in 737 and 787 deliveries next year, sending stock soaring 7%.
The company's optimism comes as it nears the end of a challenging period, marked by a door plug blowout on a flight in January 2024. Since then, Boeing has faced increased scrutiny and struggled to turn a profit annually since 2018.
Jay Malave, Boeing's CFO, shared his positive outlook at a UBS conference on Tuesday. He anticipates a significant boost in deliveries for both the 737 and 787 jets in 2026, with a focus on the 737-10 aircraft's certification, which is years behind schedule.
Malave emphasized the impact of these deliveries on cash flow, projecting positive free cash flow in the billions in the 'low single digits'. This improvement is crucial for Boeing, which has been in a cash-positive position for the first time in nearly two years due to strong delivery pace in October.
Additionally, Malave highlighted a projected increase in cash margins through 2030, attributed to higher productivity. This positive trend follows CEO Kelly Ortberg's announcement in July that the company was making significant strides, including reducing quarterly losses.
The Federal Aviation Administration's lifting of restrictions in September further facilitated Boeing's delivery process, allowing the company to sign off on 737 Max and 787 Dreamliner planes before they reach customers.
As Boeing looks ahead to 2026, its CFO's predictions and the company's recent achievements suggest a promising outlook, with potential for increased profitability and a return to a more stable financial position.
