While it’s been a “big year” for Boeing with 737-7 certification complete and 737-10 expected very soon, President and CEO Kelly Ortberg said it’s taking a bit longer to stabilize 737 MAX production and move to higher rates on both the 737 and 787 programs as the company continues to execute its 2026 plan.
- "We're now driving at 47 a month, but we are not stable yet at 47 a month,” Ortberg said at an investor conference while detailing the company’s plan to increase wing production to help stabilize the production system. “That's been our task here to get stable. I'd say that's probably taking us a little bit longer than what I had anticipated."
Ortberg and Chief Financial Officer Jay Malave also discussed the company’s financial outlook and provided updates on fixed-price defense programs, 777-9 certification and SPEEA negotiations during the Morgan Stanley Laguna Conference on Wednesday.
Go deeper: Listen to the conversation or read the transcript.
737-10 certification coming ‘very soon’: Ortberg said the 737-10 is nearing certification with the team focused on the final documentation required by the U.S. Federal Aviation Administration.
- “We’re in close coordination with them (FAA), and I think you’re going to see that certification very soon,” Ortberg said. “We’ve completed all the flight testing. Now we’re just in the documentation phase.”
777-9 testing continues, more work to do: The team continues to make progress and remains on track for first delivery in 2027, but Ortberg noted there are challenges.
Stabilizing production, increasing deliveries: On 787 production, Ortberg and Malave said the company has stabilized at Rate 8 and is working toward increasing to 10 airplanes per month later this year. Looking ahead, Malave added the company is preparing for future rate increases.
- “Our second assembly facility is under construction today,” Malave said. “We expect that to be complete next year so that helps us start thinking about these future rates.”
While the factory remains stable, they noted new seat certifications are taking longer than expected and continue to affect some deliveries.
Defense portfolio progress: Ortberg pointed to what he called “probably the most underappreciated” progress of the past year: the work happening across Defense, Space & Security.
- “Really good work that’s been done in our defense portfolio, dealing with not only our challenging, fixed-price development contracts, but really setting the stage for future growth in that portfolio,” he said.
Despite some risks ahead, Ortberg said the team is making good progress on the development programs and staying focused on meeting customer commitments.
SPEEA negotiations: When asked about the recent negotiations with the Society of Professional Engineering Employees in Aerospace (SPEEA), Ortberg said Boeing submitted a revised offer and the company is working hard to reach an agreement.
- “We've listened very carefully to the feedback in that process,” Ortberg said. “We now have a new offer that's endorsed by the negotiating committee.”