Boeing (NYSE: BA) CEO Kelly Ortberg addressed production challenges and clarified expectations regarding potential aircraft orders from China during the Morgan Stanley Laguna Conference on Wednesday.
Ortberg reported that Boeing has achieved a production rate of 47 aircraft per month for the 737 model. However, he stated that the company has not yet stabilized at this level. The CEO identified wing production in Renton as the primary bottleneck preventing further acceleration of the 737 production ramp.
Regarding the 777X program, Boeing is awaiting the completion of GE Aerospace’s engine mid-seal certification plan before it can begin Extended Twin-Engine Operations (ETOPS) testing. The company continues to target 2027 deliveries for the initial aircraft, though some testing may spill into next year.
On the certification front, Boeing expects the 737 MAX 10 to receive certification “very soon.” Flight testing for the aircraft is complete, leaving documentation and regulatory review as the remaining steps. The MAX 10 represents approximately 30% of Boeing’s 737 backlog.
Ortberg also tempered expectations regarding a large order from China. He clarified that Boeing did not receive a roughly 200-plane order earlier this year. Instead, he stated that Chinese officials indicated plans to move forward with purchases, with orders expected to emerge incrementally and be announced by individual airlines.
Boeing is currently working to avoid a stoppage before the current SPEEA contract expires on Oct. 6. The company noted that a potential strike could effectively halt the 777X certification program and disrupt 737 production.
CFO Jay Malave reaffirmed Boeing’s 2026 free cash flow forecast of $1 billion to $3 billion, with a framework of approximately $2 billion. However, slower-than-expected 737 and 787 production ramps through year-end make results above the midpoint less likely than previously expected.
