Boeing Stock Rises on Union Deal and Defense Contract Boost
Boeing's stock price has risen as the company announced a tentative union contract agreement and a $13.4 billion expansion of its defense contract ceiling. The deal with the Society of Professional Engineering Employees in Aerospace (SPEEA) covers around 17,000 union members and includes a 10 percent salary increase effective October 16, 2026.
The defense contract modification will support additional Foreign Military Sales activities primarily for Japan and Israel. However, it's worth noting that no funds were obligated at the time of award, meaning the increased ceiling does not translate into immediate revenue.
Boeing's valuation remains moderate in this context, with a price-to-sales ratio slightly below its historical median. The company's intrinsic value is estimated to be around $211.23 per share, suggesting it's broadly fairly valued on historical multiples.
Despite the positive contract and labor developments, Boeing remains in a loss-making phase. Its latest quarterly figures show revenue of $24.56 billion and negative earnings of $530 million for Q2 FY26. Analysts expect Boeing to remain loss-making for the current year but with improving trends.