TLDR
- Boeing CFO Jay Malave announced the company expects increased deliveries for both 737 and 787 jets in 2026
- Boeing stock jumped more than 7% in early trading following the announcement at a UBS conference
- The company projects positive free cash flow in the low single-digit billions after not turning an annual profit since 2018
- Boeing’s 737-10 aircraft certification is expected later in 2026, years behind its original schedule
- October deliveries put Boeing on track for its highest annual delivery total since 2018
Boeing shares climbed more than 7% Tuesday morning after Chief Financial Officer Jay Malave shared optimistic delivery projections for 2026. Speaking at a UBS conference, Malave told investors the aerospace manufacturer expects to ramp up deliveries for both its 737 and 787 aircraft programs next year.
The comments mark a turning point for Boeing as it works to recover from years of setbacks. The company has not recorded an annual profit since 2018.
Malave said the increased deliveries will drive positive free cash flow into the low single-digit billions. This would represent a major milestone for the manufacturer after a prolonged period of cash burn.
The CFO also addressed Boeing’s long-delayed 737-10 aircraft. He expects certification for the narrow-body jet to arrive later in 2026. The 737-10 has fallen years behind its original timeline.
Boeing’s recovery trajectory has been building momentum in recent months. October saw a strong delivery pace that positioned the company for its highest annual delivery total since 2018.
The Federal Aviation Administration lifted key restrictions that had slowed Boeing’s operations. The agency now allows Boeing to sign off on some 737 Max and 787 Dreamliner planes before delivery to customers.
Cash Flow and Margin Improvements
Malave pointed to the delivery increases as a major cash flow driver for 2026. He told conference attendees that Boeing expects cash margins to receive a substantial boost through 2030.
The CFO attributed the margin improvements to higher productivity across Boeing’s operations. Combined with better performance from the defense and space division, these factors should strengthen Boeing’s financial position.
Boeing returned to cash-positive territory in October for the first time in nearly two years. The jetliner deliveries were the primary driver of this improvement.
The company has been competing with Airbus for narrow-body aircraft orders. Boeing faces an uphill battle after more than five years of corporate crisis disrupted production and added billions in debt.
CEO Kelly Ortberg noted in July that Boeing was beginning to see positive changes. The company slashed its quarterly losses during that period.
Recovery After Safety Scrutiny
Boeing’s path forward follows intense scrutiny after a door plug blew out on a flight in January 2024. The incident triggered investigations and increased regulatory oversight of the manufacturer’s quality control processes.
The company has been working to rebuild its reputation while meeting production targets. Boeing employees continue assembling aircraft at facilities including the 787 manufacturing campus in North Charleston, South Carolina.
Boeing shares have risen nearly 5% in 2024. The stock trades as investors weigh the company’s recovery efforts against ongoing challenges in ramping production.
Malave expressed confidence that Boeing would hit its annual $10 billion free cash flow target. The delivery increases and operational improvements form the foundation of this projection.
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