Boeing Clears Labor Risk, But Wing Shop Bottleneck Remains

Boeing has cleared its labor overhangs after the SPEEA union recommended that members accept the company's latest contract offer. The recommendation removes a strike risk that CEO Kelly Ortberg called his '1, 2, 3, 4, 5 priority' on the July earnings call.

However, the labor relief comes against a less reassuring backdrop. Boeing disclosed at the Morgan Stanley Laguna conference that its 737 production at 47 planes per month is 'not yet stable' due to a wing-shop flow problem. The company's plan to reach 52 airplanes per month depends on stabilizing the Renton wing shop and certifying the new North Line in Everett.

Boeing's quarterly free cash flow data shows that it still swings by billions of dollars each quarter, with outflows of $1.96 billion, $4.1 billion, $2.29 billion, and $200 million across four quarters spanning late 2024 through mid-2025.