Core Insights - Boeing is experiencing significant production gains, particularly with the 737MAX, as stock prices have risen by 37% since the beginning of the year and aircraft deliveries have exceeded analyst expectations [2][8] Production and Deliveries - In July, Boeing delivered 37 MAX aircraft, approaching the FAA-mandated production cap of 38 per month, which is an increase from an average of 35 per month over the previous three months [3] - In the first half of August, Boeing delivered 17 aircraft, including 15 MAXes, indicating stable assembly operations and supply chain performance [5] - Boeing's backlog stood at 6,572 aircraft at the end of July, with 10% of that backlog designated for delivery to Chinese airlines [6] Financial Performance - The company's revenues increased by 26% in the first half of the year, following a shutdown due to a safety incident in January 2024 [8] - Operating cash flow turned positive in the second quarter at $227 million, a significant improvement from a nearly $4 billion negative figure in the same period in 2024 [9] Labor Relations - A strike involving 3,200 members of the International Association of Machinists has entered its second week, with no clear resolution in sight [9] - The initial offer of a 20% wage increase and a $5,000 bonus was rejected by the rank and file, leading to the current strike [10] - Boeing has rescinded the $5,000 bonus offer, and union leadership is urging the company to return to negotiations [11] Future Outlook - The 777X program has reached a milestone with the fifth 777-9 completing its first flight, with hopes to conclude testing and certification by the end of the year for first deliveries in 2026 [7] - Despite ongoing labor challenges, Boeing is showing confidence in its ability to navigate business and labor issues, having previously resolved a significant strike affecting 33,000 workers [12]

Core Insights - Boeing is experiencing steady momentum in its 737 and 787 programs, overcoming typical seasonal slowdowns and an initially sluggish start [1] - Bank of America Securities analyst Ronald J. Epstein maintains a Buy rating on Boeing with a price target of $260, indicating confidence in the company's delivery and production trajectory [1] 737 Program - By mid-July, Boeing delivered 10 737s, which aligns with its usual monthly cadence, with expectations for acceleration in the second half of the month [2] - Epstein projects at least 30 737 deliveries for July, following a rate of 38 in June, despite potential seasonal slowdowns in July and August [4] 787 Program - The 787 program is performing well, with four deliveries completed by mid-July, and Epstein expects total deliveries to reach eight or nine units, potentially matching the year-to-date high of nine [4][5] - Three 787s have already been rolled out in July, with an anticipated total of six, in line with Boeing's plan to transition to a production rate of seven this year [5] Market Activity - There is a positive shift in activity from China, with two aircraft reactivated and more pre-delivery flights occurring, leading to three deliveries to China in July, with potential to reach six by month-end [3]