Boeing contracts highlight St. Louis region’s manufacturing strength

Boeing's (BA) global sales chief, Brad McMullen, will retire in December, with Ryan Weir taking over. The company faces challenges converting $27.5 billion in deferred production costs into cash, primarily from the 737 and 787 programs. CFO Jay Malave expects these costs to level off next year. The 777X program continues to absorb cash, with positive cash flow expected in 2029. Boeing's stock has a mid-target price of ~$2,010 and a street target of ~$267.

The U.S. Navy awarded Bell Boeing a $91M contract for V-22 Osprey flight control system upgrades. The project, expected to complete by 2030, addresses aging components and cybersecurity. Work will be performed in Pennsylvania, Arizona, and Texas, with funds from the Air Force, Navy, and Foreign Military Sales.

Boeing (BA) secured contracts for two advanced U.S. fighter jet programs, the F-47 and F/A-XX, worth over $20 billion. Bank of America maintains a Buy rating and $270 price target, citing settled risks and potential $200 billion in lifetime revenue from these programs. Boeing's stock is down 16% year-to-date.

The FAA found a Boeing 737 MAX software flaw not to be a safety risk, clearing the way for MAX 10 certification. The issue, reported by WestJet in 2024, increases pilot workload during go-arounds. Airlines like United and Southwest have asked to avoid deliveries with the affected software. The MAX 10 has 1,533 firm orders, with first deliveries expected in 2027. The FAA's ruling removes a certification obstacle, but questions remain about guidance and software updates.

Boeing's 737 MAX 10 could be certified next week, but airlines may refuse deliveries due to a software glitch affecting autopilot control. The FAA ruled the issue isn't a safety concern, but airlines prefer older software versions. Boeing is working on a fix and updated pilot guidance. Major customers like United and Ryanair expect deliveries in spring 2027.

Boeing's 737 MAX 10 may receive FAA approval as early as next week, following the completion of a key safety review. The FAA's approval is pending.