CEO talks plans to stabilize 737 MAX production and path to $10 billion free cash flow

Key takeaways

• Boeing’s Q3 earnings report highlighted certification progress and defense wins.
• 737 MAX production plan to increase rate prioritizes safety, quality and stability.
• Positive free cash flow is expected in 2026, $10 billion target set for 2029.

With a focus on safety and quality, Boeing President and CEO Kelly Ortberg said the company has made important progress and acknowledged the ongoing work to stabilize 737 MAX production at a rate of 47 airplanes per month.

• “I know everybody wants us to go faster, but we’re going to do it right,” Ortberg said during a live interview with CNBC. “Make sure that the production system is stable and we’re delivering high-quality, safe aircraft.”

During the interview, Ortberg discussed the company’s emphasis on safe, stable production increases, new airplane certifications and defense performance following Boeing’s third-quarter earnings Tuesday.

Making progress: Ortberg said the third quarter showed important progress in commercial certifications and strategic defense wins.

• “Getting the two new 737 MAX variants certified, the 737–7 and 737–10, was really important because those airplanes will deliver beginning next year,” Ortberg said. “And on the defense side, winning the U.S. Navy’s next-generation fighter airplane – the F/A-XX – was a huge, transformational win for the company.”

Boeing also rolled out its first airplane, a 737-10, from Everett’s new North Line, while 777-9 certification continues to progress and the program’s first delivery remains on track for 2027.

Defense momentum builds: Ortberg noted the improving performance within Defense, Space & Security and significant new business, including a multiyear PAC-3 seeker contract and an additional F-15EX order.

• "Our entire portfolio is really needed right now, and we're seeing strong demand," Ortberg said. "We'll see larger growth numbers out of our defense portfolio."

Looking ahead: Ortberg said uncertainty in Boeing’s financial performance is narrowing as the company reduces risk and focuses on delivering its record backlog across commercial, defense and services.

• “We're going to be smart about this, stay disciplined,” Ortberg said. “We have $745 billion of backlog, and it's our job to execute on that backlog in a profitable way.”

Boeing reaffirmed that it anticipates positive cash flow in 2026 for the first time since 2023, and Ortberg noted the company is expecting to increase positive free cash flow in coming years.

During a conference call with analysts after the CNBC live interview, the company outlined its plans to generate approximately $3 billion in free cash flow in 2027, approximately $6 billion in 2028 and achieve the $10 billion target in 2029.

Free cash flow is a key financial metric because it is an important indicator of a company’s financial health and provides the resources necessary to fuel growth and support innovation.