Boeing Share Price Rebounds Amid FAA Review and Defense Contract Win

Boeing's share price rebounded sharply in recent days after engineers and technical workers approved a new contract, averting an imminent strike. The company's largest white-collar union, SPEEA, voted to approve the contract with 68% of professional bargaining unit members and 53% of technical unit members in favor. This deal removes a significant risk to Boeing's operations during its recovery phase.

The FAA is currently evaluating a software issue on the 737 MAX that is delaying certification of the MAX 10. A resolved review would likely advance the case for MAX 10 recovery, while additional requests or a lengthy certification process would push back deliveries and cash collections. On the other hand, Boeing has strengthened its long-term business with the award of a contract worth several billion dollars to replace the F/A-18 Super Hornet.

Boeing's second-quarter revenue was $24.56 billion, an 8% increase year-over-year, driven by 171 commercial aircraft deliveries. However, the company reported a GAAP loss per share of $0.67 and core loss per share of $0.76. Boeing's total backlog stands at a record $715 billion.