Burghley Capital Reports Strong Growth in Boeing 737 MAX Manufacturing
Burghley Capital highlights Boeing's decisive move to increase the production rate of its flagship 737 MAX aircraft from 38 to 42 planes per month by mid-2025. This expansion aligns closely with investor expectations, reflected immediately by a 3.14% surge in Boeing's share price to USD 207.86 following the announcement.
Boeing's ambitious production plans follow significant challenges earlier this year, including a first-quarter cash burn of approximately USD 2.3 billion. However, the company remains confident in its forecast to transition to cash-positive operations by the second half of 2025. 'The production increase is essential,' emphasises James Barker, Director of Private Equity at Burghley Capital, 'as it strategically positions Boeing to monetise its extensive backlog of orders, turning a significant commercial commitment into tangible financial gains.'
Indeed, Boeing's backlog remains substantial, comprising nearly 1,200 orders for the MAX 10 and 332 for the MAX 7, collectively valued within a commercial backlog surpassing USD 438.94 billion. Crucially, Boeing's resumed deliveries to the Chinese market in June represent a pivotal development, significantly enhancing Boeing's global market presence and fortifying international sales capabilities.
Barker highlights that the renewed deliveries to China offer compelling evidence of Boeing's improving operational outlook. 'China's re-entry as a customer greatly underpins the sustainability of Boeing's higher production targets. This development aligns perfectly with our strategic view on aerospace investments, particularly in the Asia-Pacific region, which forecasts demand for approximately 17,580 new aircraft by 2042.'
In response to stringent Federal Aviation Administration (FAA) safety regulations, Boeing has adopted innovative manufacturing practices, such as assembly line pulsing, to validate readiness for escalated production rates without breaching regulatory restrictions. Early indications of this approach are reportedly positive, with Boeing achieving a notable 30% reduction in production defects year-to-date.
Regulatory compliance remains central, however. The FAA continues to enforce strict oversight, currently capping Boeing's monthly 737 MAX production at 38 aircraft pending verification of consistent manufacturing quality improvements. Boeing's leadership has underscored that achieving stability at the present rate is crucial to obtaining approval for further increases, forecasting monthly output potentially reaching 47 aircraft by year-end.
Looking ahead, Boeing also plans to raise the monthly output of its wide-bodied 787 aircraft from five to seven units, eventually targeting a production rate of ten per month. Barker notes, 'These structured increments offer investors clear visibility into Boeing's broader financial recovery and market stabilisation strategy.'
Global travel recovery is further strengthening Boeing's market position, with global passenger traffic now exceeding pre-pandemic levels by 3.2%. Barker observes, 'The increasing global demand, particularly within the narrow-body market segment, positions the 737 MAX family as a critical driver of Boeing's future profitability.'
Market optimism is mirrored in Boeing's share price performance, demonstrating a significant recovery of 62% since its lows in early April 2025 and an 18% appreciation year-to-date. This resurgence underscores burgeoning investor confidence amid operational enhancements and increased production clarity.
Burghley Capital underscores Boeing's robust long-term value proposition in the aerospace sector, with Barker affirming that 'Boeing's commitment to increased production and stringent quality adherence provides a strong foundation for sustainable investment returns, especially in a recovering global aviation market.'
About Burghley Capital
Established in 2017, Burghley Capital Pte. Ltd. (UEN: 201731389D) is a distinguished global investment management firm headquartered in Singapore, known for its expertise in long-only asset management strategies. The firm delivers strategic advantages through precise analytical insights, bespoke investment solutions, and dedicated financial advisory services. Committed to disciplined investment practices, Burghley Capital consistently aims to generate superior returns and financial resilience for its global clientele, encompassing institutional investors and private clients.
For further insights, please visit https://burghleycapital.com/resources.
Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Think You Missed the Boat? Why These ETFs Are Poised for a Run.
Key Points The Invesco QQQ Trust holds the 100 top non-financial stocks listed on the Nasdaq. The Vanguard Growth ETF holds 165 top growth stocks. The Vanguard S&P 500 ETF has a long record of delivering attractive returns. 10 stocks we like better than Invesco QQQ Trust › Many of the best ETFs have delivered strong returns over the past year. The Invesco QQQ Trust (NASDAQ: QQQ) and Vanguard Growth ETF (NYSEMKT: VUG) have gained more than 20% over the past 12 months, while the Vanguard S&P 500 ETF (NYSEMKT: VOO) has rallied more than 15%. Given these recent gains, investors might think they missed the boat. However, the factors behind these gains aren't likely to fade anytime soon. As a result, these ETFs appear poised to continue their run in the coming years. A high-return fund The Invesco QQQ Trust tracks the Nasdaq-100 Index, which comprises the 100 largest non-financial stocks listed on the Nasdaq stock exchange. These companies invest heavily in research and development (R&D) -- around 11% of their annual sales over the past three years -- to drive innovation. That has supported 10% or greater compound annual growth rates for revenue, earnings, and dividends over the past decade -- significantly outpacing S&P 500 Index companies, whose comparable annual growth rates are in the mid-single digits. As a result, these Nasdaq-100 companies have delivered robust returns for the Invesco QQQ Trust. Over the past 10 years, the ETF has gained nearly 450%, compared with the more than 250% return of the S&P 500 over the same period. At that rate, the fund has grown a $10,000 investment made a decade ago into more than $54,500 today. The fund's past performance doesn't guarantee similar returns in the future. However, with these companies' ongoing focus on R&D, they are well positioned to continue developing new distributive technologies, such as artificial intelligence, quantum computing, and robotics. This next wave of innovation could drive strong returns for the Invesco QQQ Trust in the decade ahead. More growth ahead The Vanguard Growth ETF tracks the CRSP US Large Cap Growth Index, which is focused on the country's largest growth stocks. It currently holds more stocks than the Invesco QQQ Trust, at 165. Its holdings include top growth companies listed on the Nasdaq and New York Stock Exchanges, including financial stocks. As a result, it provides investors with even greater exposure to the country's fastest-growing large companies. This fund has also produced strong returns over the years: Data source: Vanguard. A $10,000 investment made at its inception more than 20 years ago would have grown into over $93,000 today. This fund remains in an excellent position to continue delivering strong returns. Like the Invesco QQQ Trust, its holdings continue to invest in innovation, including new financial technologies, which should support above-average growth rates and returns for investors. Old reliable The Vanguard S&P 500 ETF is the largest ETF in the world by assets under management (AUM), at more than $700 billion. Investors entrust this Vanguard fund with their capital because of its exceptional record of delivering returns in line with the S&P 500, which tracks the 500 largest publicly traded companies in the United States. The S&P 500 is the gold-standard benchmark for investors. While many investors aim to beat the S&P 500's returns, the Vanguard S&P 500 ETF enables investors to join in on the index's returns. Over the past 50 years, the average stock market return as measured by the S&P 500 has been 10% annually. At that rate, the ETF can double an investor's money about every seven years. While the S&P 500's greater diversification across other sectors and inclusion of slower-growing companies will probably lead it to deliver lower returns compared with QQQ and VUG over the long term, the fund has a lower risk profile. As such, the S&P 500, and therefore this fund, is less likely to decline as much as QQQ and VUG during a stock market selloff. This tradeoff makes the fund an ideal long-term investment to complement those funds. Great ETFs to buy and hold long term The Invesco QQQ Trust, Vanguard Growth ETF, and Vanguard S&P 500 ETF are among the top ETFs to buy. They enable investors to participate in the growth of the economy. Given the ongoing expansion driven by innovation, these are great ETFs to buy and hold long-term, even after their runup over the past year. Should you invest $1,000 in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025
Globe and Mail
an hour ago
- Globe and Mail
Nvidia Has 95% of Its Portfolio Invested in 2 Brilliant AI Stocks
Key Points Nvidia has 95% of its stock portfolio invested in CoreWeave and Arm, two companies benefiting from growing demand for artificial intelligence infrastructure. CoreWeave has been recognized as the best artificial intelligence cloud platform on the market, but its net loss widened in the recent quarter as interest payments increased. Arm has rapidly share in data centers as companies have prioritized power efficient chips amid the proliferation of power-hungry artificial intelligence workloads. 10 stocks we like better than CoreWeave › Nvidia (NASDAQ: NVDA) owns stock in publicly traded companies as part of its treasury strategy. Its $4.3 billion portfolio included six positions as of the June-ending quarter, but two accounted for 95% of invested assets: 91% was allocated to CoreWeave (NASDAQ: CRWV) and 4% was to Arm Holdings (NASDAQ: ARM). Here's what investors should know about these magnificent artificial intelligence stocks. CoreWeave: 91% of Nvidia's stock portfolio CoreWeave provides cloud infrastructure and software services purpose-built for artificial intelligence (AI) workloads. The company currently owns 33 data centers across the United States and Europe. SemiAnalysis recently ranked it as the best AI cloud on the market for its unmatched performance, awarding it higher scores than competitors including Amazon, Microsoft, and Alphabet 's Google. CoreWeave has a close relationship with Nvidia that often lets it bring new chips to market before other cloud providers. For instance, it was the first cloud to offer Nvidia H100 and H200 GPUs, and the first to offer Nvidia GB200 (Grace Blackwell) superchips. Cutting-edge infrastructure combined with industry-leading performance has helped CoreWeave win big customers including Microsoft, OpenAI, and Nvidia. CoreWeave reported second-quarter financial results that beat estimates on the top and bottom lines. Revenue increased 206% to $1.2 billion, and non-GAAP operating income, which does not include interest payments, climbed 134% to $200 million. However, when interest payments on debt are included, the company's non-GAAP net loss widened to $131 million. Investors should be aware of two risks. First, Microsoft contributed 71% of revenue in the quarter, meaning CoreWeave is highly dependent on a single customer. Second, capital expenditures are expected to top $20 billion this year, more than double last year, as the infrastructure buildout accelerates. That trend could cause CoreWeave to take on more debt, and interest payments already consumed 22% of revenue last quarter. CoreWeave trades at 12 time sales, a reasonable valuation for a company whose revenue is forecast to grow at 88% annually through 2027. The stock is priced at $100 per share, and analysts have mixed opinions about where its headed. Targets range from $32 per share at the low end, implying 68% downside, to $180 per share at the high end, implying 80% upside. I think patient investors comfortable with volatility can buy a very small position today. Arm Holdings: 4% of Nvidia's stock portfolio Arm is a somewhat atypical semiconductor company. Rather than selling chips, it designs central processing unit (CPUs) architectures and related technologies such as systems and software development tools. Arm then licenses its intellectual property to companies that build custom CPUs in end markets such as mobile devices, data centers, and automotive systems. Arm's power-efficient architecture has helped the company capture 99% market share in smartphones, but that quality has more recently driven demand in data centers as power-intensive AI workloads have proliferated. In fact, Amazon, Microsoft, and Alphabet have designed Arm-based CPUs, as has Nvidia. Consequently, more than 70,000 enterprises run AI workloads in data centers on Arm chips, a 14-fold increase from 2021. Arm reported disappointing financial results in the June-ending quarter, missing sales estimates on lower licensing revenue and light royalty revenue. Total sales increased 12% to $1 billion, operating margin contracted 8 percentage points primarily because of increased R&D spending, and non-GAAP net income fell 13% to $0.35 per diluted share. But the company expects sales growth to accelerate to about 25% in the current quarter. Arm recently began licensing compute subsystems (CSS), which are essentially blueprints that combine CPUs with other chip components to help customers develop new products faster. The number of CSS customers more than doubled in the last quarter, and that trend bodes well for Arm because CSS licenses entitle the company to more royalty revenue than CPU design licenses alone. Wall Street expects Arm's adjusted earnings to grow at 23% annually through the fiscal year ending in March 2027. That makes the current valuation of 87 times adjusted earnings look expensive. But analysts have underestimated the company in the past. Arm beat the consensus earnings estimate by an average of 11% in the past six quarters. With that in mind, patient investors could buy a very small position today, but waiting for a cheaper entry point would be prudent. Should you invest $1,000 in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Globe and Mail
an hour ago
- Globe and Mail
The Most Anticipated Stock Splits of 2025 May Be Members of the "Magnificent Seven"
Key Points In addition to the rise of artificial intelligence (AI), excitement surrounding stock splits has played a key role in lifting the broader market. Two members of the Magnificent Seven have significant retail investor ownership, which can spur the need for a forward split. Furthermore, these two Mag-7 components offer cash-rich balance sheets and well-defined competitive advantages. 10 stocks we like better than Meta Platforms › Since the mid-1990s, investors have almost always had a game-changing innovation to garner their interest. At the moment, nothing has earned more hype than the artificial intelligence (AI) revolution. But every so often, more than one next-big-thing trend can exist at the same time. In addition to having AI lift Wall Street's major stock indexes to new heights, stock-split euphoria has played a key role in boosting valuations for some of the market's leading businesses. Excitement surrounding stock splits has taken hold on Wall Street A stock split is a tool public companies have at their disposal to adjust their share price and outstanding share count by the same factor. These adjustments are purely surface-scratching and have no impact on a company's market cap or its underlying operating performance. Even though these changes are cosmetic, investors view the two types of stock splits as polar opposites. On one hand, reverse splits are typically avoided. This type of split, which is designed to increase a company's share price, is often something you see from struggling businesses that are attempting to avoid delisting from a major stock exchange. In comparison, investors gravitate to businesses announcing and completing forward splits. Companies that have to reduce their share price to make it more nominally affordable for everyday investors who can't buy fractional shares are, in many instances, out-executing and out-innovating their peers. To date, three influential businesses have completed a forward split in 2025. However, investors are eagerly awaiting the first true blockbuster stock-split announcement of the year. It's quite possible two members of the " Magnificent Seven" could answer the call. The Magnificent Seven stocks have crushed it over the trailing decade. NVDA data by YCharts. Returns from Aug. 13, 2015-Aug. 13, 2025. Two Magnificent Seven stocks appear primed to announce a forward split The Magnificent Seven ("Mag-7" for short) consists of seven of the most influential businesses on Wall Street, as well as seven of the 10 public companies on U.S. exchanges to have ever reached the trillion-dollar valuation plateau: What better place to find Wall Street's next blockbuster stock-split stock than among its most prominent businesses? But just because these are some of the most influential and high-flying stocks on Wall Street, that doesn't mean they're all automatically primed for a forward split. For instance, Nvidia completed a historic 10-for-1 forward split in June 2024 and will currently set investors back around $182 per share. Likewise, Amazon and Alphabet conducted respective 20-for-1 forward splits in June and July 2022, which brought their share prices down from the stratosphere to approximately $225 and $202, as of the closing bell on Aug. 13. It's unlikely that retail investors are being restricted from buying shares of Nvidia, Amazon, and Alphabet. On the other hand, the respective share prices of Meta Platforms and Microsoft have become prohibitive for some investors who lack the ability to purchase fractional shares. In other words, Meta and Microsoft both have a strong case to become 2025's blockbuster stock-split stocks. Meta Platforms Social media colossus Meta Platforms is the most logical of all Mag-7 stocks to announce a forward split, given its nearly $800 share price. It's also the only member of the Magnificent Seven that's never completed a split. But there's more to identifying a stock-split candidate than just a high share price. Since institutional investors aren't in need of a lower nominal share price, companies often need meaningful retail investor ownership to encourage a split. More than 27% of Meta's outstanding shares are held by everyday investors, which is a sizable enough figure for Meta's board to consider taking the plunge. Aside from the almost $800 price tag accompanying Meta's shares, what could prompt a split announcement is the company's bright future and the growing likelihood that its stock will head substantially higher over time. Though Meta's future is dependent on the evolution of AI, it remains a powerhouse in the advertising realm. Meta's social media sites -- Facebook, WhatsApp, Instagram, Threads, and Facebook Messenger -- were responsible for attracting 3.48 billion daily users to its family of apps in the month of June. Since no other social media company comes close to these figures, Meta is afforded exceptional pricing power for ad placement. Artificial intelligence is helping Meta Platforms deliver double-digit growth in ad sales. Giving businesses access to generative AI solutions, which can help tailor messages to specific users and improve ad click-through rates, is a practical way AI investments are paying off almost immediately for Mark Zuckerberg's company. Furthermore, AI will be relied on to fuel growth in the metaverse, which is the 3D virtual world where users can interact with each other and their surroundings. Zuckerberg's aggressive metaverse investments should allow his company to be a primary on-ramp to this virtual environment in the years to come. Don't overlook Meta's cash pile, either. It closed out the midpoint of 2025 with more than $47 billion in cash, cash equivalents, and marketable securities and is pacing more than $99 billion in net cash generated from operating activities this year. It has the balance sheet and operating cash flow that affords risk-taking. Microsoft Although Meta has the highest nominal share price among members of the Mag-7, it would be no surprise if software juggernaut Microsoft became the blockbuster stock-split stock of 2025 that investors are waiting for. Microsoft is no stranger to splitting its stock. Since going public in March 1986, it's completed nine forward splits, which would have turned one share at its initial public offering into 288 shares currently. However, the stock market's second-largest company by market cap hasn't completed a split since February 2003. But with its share price now well above $500, and over a third of its outstanding shares held by retail investors, the impetus for a split is stronger than ever. Similar to Meta, Microsoft's long-term outlook is bright, which strongly suggests its share price will head even higher in the years and decades to come. That provides even more of a catalyst for the company to announce its first split in 22 years. Microsoft is very much relying on artificial intelligence to grease its growth engine. Introducing generative AI solutions and tools that allow clients to build and train large language models within Azure have boosted sales for the world's No. 2 cloud infrastructure service platform. During the fiscal fourth quarter (Microsoft's fiscal year ends on June 30), Azure delivered a year-over-year sales jump of 39%, signaling just how powerful AI is as a growth driver. While AI and cloud computing are proving instrumental to Microsoft's sustained double-digit growth rate, investors shouldn't overlook the importance of the company's legacy Windows and Office segments. Though the growth heydays for these divisions are long gone, they continue to generate high-margin operating cash flow that Microsoft can use to make acquisitions or reinvest in other high-growth initiatives. It also offers one heck of a capital-return program. Though its dividend yield may not be much to look at, Microsoft led all public companies with more than $24 billion paid in dividends to its shareholders in fiscal 2025. It also added north of $18 billion in share buybacks, which can boost earnings per share over time. Microsoft and Meta are ideally positioned to be the most anticipated stock-split stocks of 2025. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Sean Williams has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
