Boeing Forecasts Higher 737, 787 Deliveries In 2026, Sees Spirit Aerosystems Buyout Set To Close

Core Viewpoint - Boeing's shares are experiencing an increase following the company's guidance at the UBS Global Industrials and Transportation Conference, indicating positive expectations for future aircraft deliveries and financial performance [1]. Group 1: 2026 Guidance - Boeing anticipates an increase in deliveries of both the 737 and 787 aircraft models in 2026 compared to 2025, primarily driven by ongoing production rather than inventory reductions [2]. - The company projects the certification of the 737 Max 10 to occur towards the end of 2026 [2]. - However, some deliveries of the 737 Max 10 that require rework will be delayed until 2027 [3]. - Free cash flow growth is expected to remain in the low single digits for the next year [3]. Group 2: 2025 Projections - Boeing expects to deliver between 400 and 450 737 models in 2025 [4]. - The company now forecasts a free cash outflow of approximately $2 billion for 2025, a reduction from the previously expected $2.5 billion [4]. - The financial impact of the Department of Justice penalty is anticipated to be deferred to 2026 [4]. Group 3: Spirit Acquisition - Boeing plans to finalize its acquisition of Spirit Aerosystems Holdings Inc. within this year, valued at $4.7 billion [5]. - The acquisition has been cleared by the UK government's Competition and Markets Authority, with each share of Spirit common stock to be exchanged for Boeing common stock, resulting in an equity value of about $37.25 per share [5]. Group 4: Recent Key Events - Boeing disclosed plans to build AH-64E Apache helicopters for international clients under a U.S. Army Foreign Military Sales contract valued at nearly $4.7 billion [6]. - Boeing's shares have risen by 8.70%, reaching $202.89 at the time of publication [6].