United States Air Force to acquire VIP B737-8 MAX

The U.S. State Department approved a $159 million deal for Boeing (BA) to provide aircraft ferry support and related equipment to Japan. Boeing will act as the principal contractor, according to the department's statement.

Boeing has secured a $3.7B deal to supply 14 aircraft to Biman Bangladesh Airlines, with deliveries scheduled from 2031 to 2035. Biman may add 11 more Boeing planes, totaling 25 by 2040. Airbus is also in talks to sell at least 10 aircraft to Biman, with negotiations ongoing. The deal has drawn diplomatic attention from both the US and France.

The FAA granted Boeing a three-year exemption to sell 35 more 777F freighters beyond 2028, despite stricter emissions rules. This allows Boeing to bridge the gap until its 777-8F successor enters service around 2029. Boeing argued the exemption was necessary to avoid a production gap and protect $15 billion in US exports.

The US Department of War awarded Raytheon a $34.4m contract and Bell Boeing a $29.7m contract for V-22 Osprey fleet support. Raytheon will provide engineering and technical services, while Bell Boeing will deliver loads and dynamics model data. Both contracts are for ongoing maintenance and operational readiness of the V-22 fleet used by the Marine Corps, Navy, and Air Force.

Jefferies lowered its price target on Boeing (BA) from $295 to $265 but maintained a 'Buy' rating. Boeing's stock is currently trading at $201.15, reflecting a 1.49% gain over 5 days and a 4.34% decline year-to-date.

Jefferies analyst Sheila Kahyaoglu reduced her free cash flow forecasts for Boeing, citing production stabilization delays. She now expects $2.2bn in 2026, $4.8bn in 2027, and $8bn in 2028. The target price was cut to $265 based on a 3.6% free cash flow yield. Boeing's 737 and 787 production rates are behind schedule, affecting inventory reduction and cash generation.