Raytheon, Bell Boeing win $64m US Navy contracts for V-22 fleet support

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.

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.

Boeing (BA) and Korean Air finalized a $36.2B order for 103 aircraft, including 737, 777, and 787 models, with an estimated actual value of $12.6B. The deal boosts Boeing's backlog to 6,200+ aircraft worth $596.7B, strengthening its position with a major Asian carrier. However, execution risks and production constraints remain, with 2026 free cash flow projected at $2B.

Boeing Co. secured two defense contracts worth $41.5m. One, $11.8m, is for F/A-18E/F Super Hornet support services in Kuwait, funded via Foreign Military Sales. The other, $29.7m, covers V-22 aircraft data for maintenance. Work spans multiple U.S. locations, with completion dates in 2027 and 2030. Contracts were awarded without competition by Naval Air Systems Command.

U.S. Trade Representative Greer stated 150 of 200 Boeing aircraft China plans to buy are in the order process, with 140 progressing well and 10 in processing. Boeing CEO Ortberg cautioned against expecting immediate additional orders. The deal, announced in May, is China's largest commercial aircraft purchase in a decade, aiming to reduce trade imbalance. Boeing sees China as a key market, with long-term demand for thousands of aircraft.