Boeing 737 Max 7

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'He's showing up.' Things are getting better at Boeing under CEO Ortberg.
CNBCยท 2025-07-27 12:00
Core Viewpoint - Boeing is stabilizing under CEO Kelly Ortberg's leadership after years of crises, with significant progress expected to be outlined in the upcoming quarterly results report [2][4]. Financial Performance - Boeing's shares have increased by over 30% this year, indicating positive investor sentiment [2]. - Analysts anticipate that Boeing will halve its second-quarter losses compared to the previous year and expects to generate cash in the second half of the year [3][4]. Production and Delivery - Boeing's aircraft production has increased, with airplane deliveries reaching the highest level in 18 months [3]. - The FAA has capped Boeing's production at 38 Maxes per month, which the company has reached, but to increase to a target of 42, FAA approval is necessary [15]. Leadership and Culture Change - Ortberg, who was brought out of retirement, has implemented significant changes, including cost cuts and a new labor deal after a machinists' strike [6]. - Analysts note a cultural shift within Boeing, with improvements in management and production quality being recognized by airline executives [4][13]. Challenges and Future Outlook - Despite improvements, Boeing still faces challenges, including quality control issues and the need for new aircraft development [10][19]. - The defense unit has also encountered difficulties, and there is pressure to innovate with new jet designs [17][19].