The Boeing Company

(New York Stock Exchange)
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Bullish +75

Another jump in Boeing deliveries shows why we got into the stock and want to stay in

AI-generated analysis

πŸ“ˆ Boeing delivered 60 aircraft in May 2026, its strongest monthly performance of the year and a 33% increase over May 2025.

✈️ The 737 Max achieved its highest delivery month since December 2024 with 51 units shipped.

πŸ’° Improving deliveries are expected to turn free cash flow positive in the second half of 2026, targeting $1.15B in Q2.

🏭 CEO Kelly Ortberg confirmed Boeing is operating at a production rate of 47 jets per month for the 737 Max.

🀝 China's Commerce Ministry agreed to purchase 200 Boeing aircraft, marking the first order from the country in almost ten years.

πŸ“‰ New orders softened in May with only 27 bookings, but analysts view this as typical lumpy demand rather than a trend.

πŸš€ The company aims to clear its massive backlog of 6,178 planes which extends past 2030.

πŸ“Š Shares have lagged performance recently, down 15% from the 52-week high despite positive operational news.

Bullish Signals
  • Boeing delivered 60 aircraft in May, marking its strongest monthly delivery of the year and a 33% increase over the previous year.
  • The company is on track to exceed last year's total deliveries of 600 for the full year 2026 at current pace.
  • Free cash flow is projected to turn positive in the second half of 2026, with analysts estimating $1.15 billion for Q2 and $2.95 billion for Q4.
  • Boeing successfully met FAA regulatory requirements to increase 737 Max production rates to 47 jets per month.
  • A major strategic win was secured with China's Commerce Ministry agreeing to buy 200 aircraft, the first order in nearly a decade.
  • CEO Kelly Ortberg is credited with cleaning up myriad issues and improving operational efficiency during his tenure.
Risk Factors
  • New orders for May were soft with only 27 bookings compared to 136 in April, though management notes this is typical volatility.
  • The stock has underperformed recently, trading down more than 9% over the last month and 15% from its 52-week high.
Full Analysis
Boeing reported a significant surge in monthly deliveries for May 2026, reaching 60 aircraft, which marks the company's strongest month of the year. This figure represents a 33% increase compared to May 2025 and includes 51 units of the best-selling 737 Max jets and six 787 Dreamliners. The delivery pace suggests Boeing could surpass last year's total of 600 aircraft for 2026, driven by improved operational efficiency under CEO Kelly Ortberg. The upward trajectory in deliveries is critical for Boeing's financial health as it directly correlates with free cash flow generation, which occurs upon receiving customer payments. Analysts estimate the company will achieve positive free cash flow in the second half of 2026, potentially reaching $1.15 billion in Q2 and $2.95 billion in Q4, helping to meet a full-year guide of $1 billion to $3 billion. This turnaround follows a cash burn of $1.45 billion in the first quarter. Despite a soft patch in new orders for May with only 27 bookings compared to April's 136, management views this as normal volatility rather than a threat to their investment thesis. Positive developments include meeting FAA requirements to increase 737 Max production rates and securing a major agreement from China's Commerce Ministry for 200 aircraft, the first such order in nearly a decade. CEO Ortberg aims to sustain a production rate of 47 jets per month to clear the backlog extending past 2030.