Boeing Awarded $47.7 Million In CH-47F Chinook And KC-135 Contract Modifications

Boeing (BA) stock rose 0.3% overnight after the FAA stated a 737 MAX software glitch poses no safety risk. Jefferies maintained a 'Buy' rating, citing potential MAX 10 certification by year-end and a 36% upside to $265. The MAX 10, with over 1,500 orders, is crucial for Boeing's financial recovery. BA stock is down 11% year-to-date.

Boeing (BA) won two major U.S. fighter contracts: the F-47 for the Air Force and the F/A-XX for the Navy, each with a $20 billion development phase. The company is now the sole provider of sixth-generation fighters, which could lead to significant future revenue. Boeing's defense unit returned to profitability in 2024, with analysts expecting sustainable profits in 2027.

The U.S. Navy selected Boeing for a $20B contract to build the F/A-XX, a sixth-generation fighter jet. The program faced delays but was revived by Congress. Boeing will develop a stealth aircraft to replace the F/A-18E/F Super Hornets, with advanced features like sensor fusion and drone integration. The contract is part of broader U.S. military modernization efforts amid competition with China and Russia. Boeing is also expanding its facilities for related work.

United Airlines' Boeing 787-10 aircraft now has an increased Maximum Takeoff Weight (iMTOW), adding 14,000 lb and extending range by 430 nautical miles or increasing payload by 5 metric tonnes. This upgrade, certified by the FAA, may allow United to use the 787-10 on longer routes previously better suited to the 787-9 or Airbus A350, potentially altering its fleet deployment strategy.

The FAA reportedly found a Boeing 737 Max software issue poses no safety risk, aiding the 737 Max 10's certification. Boeing disclosed the issue last month, affecting landing procedures. The FAA concluded pilots retain control and will receive clear indications if the issue occurs. Boeing shares rose 0.67% to $193.56 on October 2.

Boeing won a $20 billion contract to develop the US Navy's F/A-XX sixth-generation fighter jet. The aircraft will have a wider body, 700 nautical mile range, stealth design, and advanced sensors. Boeing Defense CEO called it an honor to build the platform.