BA Stock Climbs After Boeing CEO Says Production Is At 'Levels Not Seen Since 2018,' CFO Calls $10B Free Cash Flow 'Very Attainable'

• CFO Jesus Malave reaffirmed Boeing's long-term target of $10 billion in free cash flow, calling the goal "very attainable."
• Boeing reiterated plans to deliver 90 to 100 Boeing 787 aircraft this year and maintained its target for the first 777X delivery in 2027.
• The company reported second-quarter revenue of $24.56 billion, topping estimates, while posting a wider-than-expected quarterly loss.

Shares of Boeing (BA) climbed in midday trading Tuesday, putting the aerospace giant on track for a fifth straight session of gains after CEO Kelly Ortberg said production and deliveries have reached levels "not seen since 2018.”

"We're increasing production and delivering at levels not seen since 2018," Ortberg said during Boeing's second-quarter earnings call. "We are on track to be free cash flow positive for the year."

BA stock gained over 5% in intra-day trade and was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around the company trended in ‘bullish’ territory over the past day, with chatter at ‘high’ levels. Platform data showed an over 420% jump in message volume over the last 24 hours. 

Boeing CFO Backs $10 Billion Free Cash Flow Goal

Chief Financial Officer Jesus Malave reinforced the improving outlook, saying Boeing continues to view its $10 billion free cash flow target as "very attainable," with "significant growth beyond that in the next decade." 

The company reported revenue of $24.56 billion, slightly above market estimates of $24.2 billion, as per Koyfin data. However, it reported a loss per share of $0.76, more than double the consensus estimate of a $0.31 loss per share. 

Management added that it has not seen a material impact on its commercial services business from the conflict in the Middle East and remains "encouraged by the broader momentum we are building across Boeing."

Tuesday’s gains, if they hold till market close, put BA’s stock on track to break even for the year.

Boeing Reaffirms Production And Delivery Targets

Boeing reiterated that it expects to deliver between 90 and 100 Boeing 787 Dreamliners this year, remains on track for the first 777X delivery in 2027, and continues to target $1 billion to $3 billion in free cash flow in 2026. 

It added that 737 production is transitioning to 47 aircraft per month this summer, while 787 production has stabilized at eight aircraft per month. Management stated that further production increases will only occur when both internal systems and suppliers are prepared.

Boeing also reaffirmed its certification timeline for several aircraft programs. The company said certification flight testing has now been completed on both the 737-7 and 737-10, with certification still expected in 2026 and first deliveries planned for 2027.

During the quarter, Commercial Airplanes booked 246 net orders, including deals with Delta Air Lines (DAL), Korean Air, and SMBC Capital, while delivering 171 aircraft. The unit ended the quarter with a record backlog valued at $597 billion, representing more than 6,200 airplanes.

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