The Boeing Company (BA) Bernstein 42nd Annual Strategic Decisions Conference summary

Business performance and strategic progress

• Commercial production ramped up with over 1,000 new orders and record backlog in both commercial and defense portfolios.

• Defense portfolio realigned around successful programs, focusing on resolving development challenges and achieving record backlog.

• Services business maintained strong margins, supporting overall company performance.

• Significant cultural transformation with new values and unified goals, leading to improved employee and customer feedback.

• Commercial customers report receiving the best airplanes to date, reflecting operational improvements.

Production rates, supply chain, and backlog

• Backlog for key models extends into the 2030s for new customers, reflecting robust demand.

• 737 production ramped to 42 per month, with transition to 47 underway and plans for 52 and beyond, supported by a new Everett production line.

• Inventory levels remain high; equilibrium expected at 52 per month, with the north line in Everett enabling future rate increases.

• No major supply chain concerns for near-term rate increases; advanced planning underway for higher rates.

• Spirit's acquisition led to $1 billion investment in facilities and training, improving quality and readiness for higher rates.

Certification and product development

• Certification for 737-7 and -10 is over 80% complete, with final approvals expected by year-end to support next year's deliveries.

• 777X flight test program continues through year-end, with ETOPS testing extending into next year; first freighter version two years behind passenger model.

• 787 production at 8 per month, targeting 10 by year-end, but seat certification delays and engine supply issues may affect timing.

• Lessons from seat certification delays are being applied across programs, especially for MAX 10 and 777X.