Boeing Sees Multi-Year Growth Opportunities Amid Improved Execution
The Boeing Company's commercial aircraft business is showing signs of improvement as production and deliveries increase. In the second quarter, Boeing delivered 171 commercial aircraft, and the 737 program transitioned to a production rate of 47 aircraft per month in July.
New aircraft programs could add another source of long-term growth for Boeing. The 777X received FAA approval to begin certification flight testing under TIA 4B, while Boeing delivered its first 787 Dreamliners to Riyadh Air. These programs expand Boeing's future delivery opportunities beyond the existing 737 and 787 production ramp.
Boeing's growth opportunity is not limited to commercial aircraft. Its defense programs are moving into important stages, with the U.S. Navy's MQ-25A Stingray completing its first flight and being cleared for low-rate initial production, while Boeing also began low-rate initial production of the U.S. Air Force's T-7A Red Hawk.
The combination of higher production, backlog conversion, and improving cash generation could give Boeing greater financial flexibility over time.