The Boeing Company Shares Fall as Production Bottlenecks Persist

Shares of The Boeing Company fell as much as 6% after CEO Kelly Ortberg revealed that stabilizing 737 Max production is taking longer than expected. Speaking at an industry conference, Ortberg identified wing production at the Renton, Washington factory as the primary bottleneck, currently limiting output to approximately 47 aircraft per month. To reach a target of 52 jets per month next year, the company must resolve these constraints and secure certification for a new production line in Everett, Washington.

Production challenges extend to other models. Engine shortages and slow premium seat certification are hindering the 787 Dreamliner's ramp-up to 10 jets per month. Additionally, testing for the 777X is expected to extend into 2027 due to a pending GE Aerospace turbine seal certification, though deliveries remain on track for that year. The company has completed flight testing for the 737 Max 10 and expects certification very soon.

Chief Financial Officer Jay Malave noted that these delays will likely limit free cash flow to $2 billion, missing the $3 billion upside target. Regarding potential aircraft orders from China ahead of a September 24 meeting between President Donald Trump and President Xi Jinping, Ortberg stated that such orders would be announced by airlines at their own pace.