Boeing Takes Another Step Up
Boeing’s ($BA) shared its July deliveries and order figures, and what we see in them points to another step up in monthly deliveries. That increases the confidence in our thesis that first led us to add BA shares to the Portfolio and subsequently increase its exposure. The company’s July deliveries totaled 53 commercial aircraft, including 39 737 Max aircraft and 10 787 Dreamliners. While lower than the number of aircraft delivered in May and June, we tend to see a step down in July, but it does mean we will want to see a bounce back when the August figures are released in early September.
Through the first seven months of 2026, the company delivered 367 commercial aircraft. As we move into the remaining five months, if Boeing can simply keep the higher delivery levels we’ve seen in the last four months, which averaged about 59 aircraft per month up from 43 in Q1 2026, the market may need to lift the 550 to 600 aircraft it expects Boeing to deliver this year.
To the extent Boeing can lift its production schedule further in the coming months, that would likely foster not only better incremental margins but also cash flow. That would give us and others on Wall Street a reason to revisit existing BA price targets. Remember that during July, certification flight testing was completed on both the 737-7 and 737-10, with deliveries expected in 2027.
At the end of July, Boeing’s unfilled orders stood at 6,791 with around 6,200 commercial aircraft. Of those unfilled orders, the largest are for the 737 family which comprise 71% of total unfilled orders and the same percentage of the company’s backlog. That gives Boeing ample fodder to chew through and convert into revenue and incrementally higher profits in the quarters ahead, especially once it begins delivering the 737-7 and 737-10 models.
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At the time of publication, TheStreet Pro Portfolio was long BA shares.
