Boeing's Recovery Gains Momentum Amid Growing Demand

Boeing's commercial airplanes business is showing signs of improvement as production and deliveries increase. The company delivered 171 commercial aircraft during the second quarter, with the 737 program transitioning 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.

Boeing's defense programs are also 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. The company 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.