Boeing Slumps on Production Delays and Certification Concerns
Boeing's stock price dropped by 5.7% in afternoon trading on [date], falling to $197.77 from an opening near $211.
The decline came after Boeing's CEO Kelly Ortberg and CFO delivered candid commentary at the Morgan Stanley Laguna Conference, highlighting unresolved production and certification challenges across the company's key programs.
Ortberg warned that even a minor delay on the 777X program carries significant financial impact, and disclosed that the company is still awaiting an engine seal fix from GE before it can obtain final certification - with some testing potentially extending into next year, though 2027 deliveries remain the target.
The production challenges were also emphasized, with Ortberg confirming that Boeing has not yet achieved stable output on the 737 program at a rate of 47 aircraft per month, citing wings manufacturing as the primary bottleneck constraining any further ramp-up.