Latest news with #777X
Yahoo
13 hours ago
- Business
- Yahoo
Boeing's Stock Is Crushing the Market in 2025. Can It Continue?
Boeing is delivering on its key objectives, and as long as it does so, the stock price should benefit. CEO Kelly Ortberg is improving the company's forecasting costs and ramping up production. The defense business generated a profit in the first quarter after serial losses over the last few years. 10 stocks we like better than Boeing › Boeing (NYSE: BA) stock is up 13.6% this year compared to a minimal gain for the S&P 500, primarily due to management's improved performance under relatively new CEO Kelly Ortberg, who was appointed last August and continues to steer the company in a positive direction. The key question is whether the stock price renaissance will continue. Here's the lowdown. The company started the year mainly as a self-help story. While no business in the aerospace industry will ever escape the orbit of influence of its cyclical end markets -- demand for air travel -- the reality is that Boeing had ample opportunity to outperform expectations due to prior disappointing operational execution. There are three main areas that Boeing needed to improve on going into 2025, specifically: Ramp up production of the narrow-body 737 MAX to an initial rate of 38 aircraft a month in 2025 and then increase it thereafter. Improve margin performance at Boeing Defense, Space & Security (BDS), particularly with its challenging fixed-price contracts. Keep the wide-body 777X on track for its estimated first delivery in 2026. The company appears to be delivering on all three of these objectives so far in 2025, and the self-help narrative is on track. According to Chief Financial Officer Brian West on the last earnings call, Boeing received approval from the Federal Aviation Administration (FAA) to expand flight testing, and he confirmed the target for the first delivery of the 777X in 2026 to Lufthansa. Moreover, key 777X customer Emirates recently confirmed it expected first delivery of the aircraft by the end of 2026. West also confirmed that the company was on track to achieve the 38-per-month rate on the 737 MAX. And Ortberg outlined plans to then increase the rate to 42 per month and then raise it in increments of five per month, with the increases taking at least six months to implement. There is no guarantee that it will meet this goal, and the company needs to demonstrate to the FAA that it can produce at a rate of 38 per month with high quality before the agency lifts its production cap. Still, management expects to hit the 38 number in the next few months -- something to keep an eye on. The issue of defense profitability is best illustrated by examining the following chart, and investors will hope it marks the start of a sustained period of profitability for its BDS division. Fortunately, there's reason to believe this might be the case. Management has long defined its BDS revenue in terms of three buckets, the smallest of which is the most problematic. About 60 percent of BDS' business is in its core defense sector, and it continues to perform with mid- to high-single-digit profit margins, according to West. The next 25% is allocated to the fighter and satellite programs, with West mentioning "favorable margin trends" on the earnings call. The real issue lies with the 15% in the fixed price programs, and here Ortberg disclosed that Boeing had achieved estimated-at-completion (EAC) "stability" in the quarter. EAC is a forecast of the total cost of a project based on current performance. Ortberg outlined an aim to improve EAC in October, with the goal of enhancing cost controls on these contracts. It is working, and management has confirmed progress on the milestones for the T-7 training airplane. Meanwhile, the MQ-25 (an aerial refueling drone) is scheduled to move to ground and flight testing in 2026. Over the near to medium term, there's every reason to think the company can. As long as Boeing continues to execute on the three areas discussed above, the narrative should remain positive, particularly when compared to the prevailing pessimism surrounding the company going into 2025. It's climbing a wall of worry, and as long as Ortberg can demonstrate progress on its key and near-term objectives, the stock is likely to receive support. That said, the company has a long way to go before it can convince investors that it's in a position to generate the kind of earnings and cash flow necessary to develop the next generation of narrow-body commercial aircraft while paying down debt and returning capital to investors. That's a deeper question that needs to be addressed by long-term investors, but for now, the outlook is positive for Boeing. Before you buy stock in Boeing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Boeing 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Boeing's Stock Is Crushing the Market in 2025. Can It Continue? was originally published by The Motley Fool Sign in to access your portfolio
Gulf Business
18 hours ago
- Business
- Gulf Business
Emirates Airline chief Sir Tim Clark sees positive progress at troubled Boeing
The head of the world's largest international airline, Dubai's Emirates, said on Sunday there were positive signs of progress at Boeing, having previously voiced frustration over delays in delivery of new jets from the plane maker. Emirates President Sir Tim Clark said he was seeing a greater degree of determination from Boeing to resolve its many issues under a recently appointed CEO, and management had indicated cautious optimism over its recovery in discussion with Emirates. Read- Boeing is trying to stabilise and ramp up production after a quality crisis and then labour strike shuttered production of most of its aircraft last year. Boeing is also awaiting certification from the US Federal Aviation Administration for its 777X wide-body plane, of which Emirates has 205 on order. Deliveries of the 777X are set to start in 2026, six years behind schedule. Emirates has been told it could receive its first 777X any time between the second half of 2026 and the first quarter of 2027, Clark said, adding that he was sensing a more positive tone from Boeing on the plane's progress. Delays in plane deliveries Boeing and European plane maker Airbus are months and years behind on new plane deliveries, frustrating airlines that want to upgrade to more fuel-efficient aircraft and launch new services. Speaking at a news briefing on the sidelines of an IATA airline summit, Clark said the industry was still facing chronic aerospace supply problems and challenged plane makers to take responsibility. 'I am pretty tired of seeing the hand-wringing about the supply chain: you (manufacturers) are the supply chain,' Clark said. Last week, sources told Reuters that Airbus has been warning airlines it faces another three years of delivery delays in working through a backlog of supply-chain problems. Clark said the pandemic was no longer an acceptable excuse. 'It's a highly consolidated industry … I don't think they've managed to strip out the inefficiencies of the smaller units they brought together,' he said of the largest aerospace firms. Tariff Impact Clark said he expected US manufacturer GE Aerospace, which makes engines for some of Emirates' planes, to absorb a lot of the impact from tariffs into its own margins. GE is Emirates' main engine supplier. It has said that it is passing along tariff costs to customers in the form of a surcharge. Clark has previously expressed frustration with its other engine supplier, Britain's Rolls-Royce, because some engine models have struggled with maintenance problems when operating in the world's hottest climates. On Sunday, Clark said opportunities still exist in the Gulf region for Rolls-Royce if it can deliver the required performance. He left open whether a potential deal for Rolls-powered Airbus A350-1000 jets, which faltered over the durability of their engines at the Dubai Airshow in 2023, would be ready in time for the next edition in November this year. 'I am not sure about that,' he told reporters.
New York Post
a day ago
- Business
- New York Post
Air India in talks for major new narrow-body jet order, sources say
Tata Group's Air India is in talks with Airbus and Boeing for a major new aircraft order including some 200 extra single-aisle planes, topping up a mammoth deal in 2023 as the former state carrier pursues a multi-billion-dollar revamp, industry sources said. The order discussions, which two of the sources said could involve hundreds of airplanes in total spread across various sizes, expand on previously reported discussions for a further batch of large wide-body aircraft, they told Reuters. In those talks, Boeing is edging forward as the front-runner to sell more of its 777X jets, two of the sources said. Advertisement Air India's new plane order cold top a 2023 deal as the former state-owned carrier pursues a multi-billion-dollar revamp. NurPhoto via Getty Images Air India, Boeing and Airbus all declined to comment. Word of a potential new blockbuster order from India's flag carrier emerged as global airline bosses gathered in the world's fastest-growing aviation market for a Delhi industry summit to be addressed by Indian Prime Minister Narendra Modi on Monday. Advertisement Air India placed a then-record order for 470 planes from both suppliers in 2023 and another 100 Airbus jets last year. The back-to-back plane orders come at a time when aircraft manufacturers are scrambling with supply chain issues leading to severe delays in aircraft delivery and a looming jet shortage. Getting new planes is crucial for Air India, which has suffered from years of under-investment under government ownership and is now undertaking an ambitious modernization plan to recapture market share lost to global rivals. One of the sources said the potential new narrow-body jet order provisionally involved 200 aircraft, while two others estimated the volume in the hundreds. Advertisement Air India placed an order for 100 Airbus jetliners last year. REUTERS The timing of any deal was not immediately clear and one source said pricing could be a stumbling block as Air India seeks to emulate deals by India's largest carrier IndiGo, which announced new partnerships and a top-up Airbus order on Sunday. Multi-billion-dollar aircraft orders typically take months of closely held talks to negotiate, with any Boeing and Airbus components usually being announced separately. Advertisement India's aviation market is expanding at some 7% a year, according to Airbus forecasts. But analysts say its growth remains hampered by weak infrastructure, especially as it looks to connect hinterlands to bigger cities. On the eve of the airline meeting in the Indian capital, the International Air Transport Association of 300 global carriers said the country's airlines were poised to demonstrate continued rapid growth, clouded by expensive fuel costs and high taxes.
New York Post
a day ago
- Business
- New York Post
Emirates airline boss sees positive progress at troubled Boeing
The head of the world's largest international airline, Dubai's Emirates, said on Sunday there were positive signs of progress at Boeing, having previously voiced frustration over delays in delivery of new jetliners from the planemaker. Emirates President Tim Clark said he was seeing a greater degree of determination from Boeing to resolve its many issues under a recently appointed CEO, and management had indicated cautious optimism over its recovery in discussion with Emirates. Boeing is trying to stabilize and ramp up production after a quality crisis and then labor strike shuttered production of most of its aircraft last year. 3 Emirates President Tim Clark said he was seeing greater determination from Boeing to resolve its issues. AFP via Getty Images Boeing is also awaiting certification from the US Federal Aviation Administration for its 777X wide-body plane, of which Emirates has 205 on order. Deliveries of the 777X are set to start in 2026, six years behind schedule. Emirates has been told it could receive its first 777X any time between the second half of 2026 and the first quarter of 2027, Clark said, adding that he was sensing a more positive tone from Boeing on the plane's progress. Boeing and European planemaker Airbus are months and years behind on new plane deliveries, frustrating airlines that want to upgrade to more fuel-efficient aircraft and launch new services. Speaking at a news briefing on the sidelines of an International Air Transport Association summit, Clark said the industry was still facing chronic aerospace supply problems and challenged planemakers to take responsibility. 'I am pretty tired of seeing the hand-wringing about the supply chain: you (manufacturers) are the supply chain,' Clark said. Last week, sources told Reuters that Airbus has been warning airlines it faces another three years of delivery delays in working through a backlog of supply-chain problems. 3 Boeing and competitor Airbus are months and years behind on new plane deliveries. via REUTERS Clark said the pandemic was no longer an acceptable excuse. 'It's a highly consolidated industry…I don't think they've managed to strip out the inefficiencies of the smaller units they brought together,' he said of the largest aerospace firms. Emirates has not yet seen a shift in demand patterns as a result of President Trump's tariff war, Clark told an annual meeting of the IATA. Clark said he expected U.S. manufacturer GE Aerospace, which makes engines for some of Emirates' planes, to absorb a lot of the impact from tariffs into its own margins. 3 Emirates has not seen a shift in demand due to President Trump's tariffs, according to the head of the carrier. REUTERS GE is Emirates' main engine supplier. It has said that it is passing along tariff costs to customers in the form of a surcharge. Clark has previously expressed frustration with its other engine supplier, Britain's Rolls-Royce RR.L, because some engine models have struggled with maintenance problems when operating in the world's hottest climates. On Sunday, Clark said opportunities still exist in the Gulf region for Rolls-Royce if it can deliver the required performance. He left open whether a potential deal for Rolls-powered Airbus A350-1000 jets, which faltered over the durability of their engines at the Dubai Airshow in 2023, would be ready in time for the next edition in November this year. 'I am not sure about that,' he told reporters.
India Today
a day ago
- Business
- India Today
Air India in talks for another mega aircraft deal with Airbus, Boeing: Sources
Tata Group's Air India is in talks with Airbus and Boeing for a major new aircraft order including some 200 extra single-aisle planes, topping up a mammoth deal in 2023 as the former state carrier pursues a multi-billion-dollar revamp, industry sources order discussions, which two of the sources said could involve hundreds of airplanes in total spread across various sizes, expand on previously reported discussions for a further batch of large wide-body aircraft, they told those talks, Boeing BA.N is edging forward as the front-runner to sell more of its 777X jets, two of the sources said. Air India, Boeing BA.N and Airbus all declined to of a potential new blockbuster order from India's flag carrier emerged as global airline bosses gathered in the world's fastest-growing aviation market for a Delhi industry summit to be addressed by Indian Prime Minister Narendra Modi on India placed a then-record order for 470 planes from both suppliers in 2023 and another 100 Airbus jets last back-to-back plane orders come at a time when aircraft manufacturers are scrambling with supply chain issues leading to severe delays in aircraft delivery and a looming jet new planes is crucial for Air India, which has suffered from years of under-investment under government ownership and is now undertaking an ambitious modernisation plan to recapture market share lost to global of the sources said the potential new narrow-body jet order provisionally involved 200 aircraft, while two others estimated the volume in the timing of any deal was not immediately clear and one source said pricing could be a stumbling block as Air India seeks to emulate deals by India's largest carrier IndiGo, which announced new partnerships and a top-up Airbus order on aircraft orders typically take months of closely held talks to negotiate, with any Boeing and Airbus components usually being announced aviation market is expanding at some 7% a year, according to Airbus forecasts. But analysts say its growth remains hampered by weak infrastructure, especially as it looks to connect hinterlands to bigger the eve of the airline meeting in the Indian capital, the International Air Transport Association of 300 global carriers said the country's airlines were poised to demonstrate continued rapid growth, clouded by expensive fuel costs and high Reel
