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

Business performance and market outlook

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

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

• Recent reopening of the Chinese market resulted in a 200-aircraft commitment, with expectations for further orders.

• No current requests for delivery delays despite high fuel prices; new, fuel-efficient aircraft remain in demand.

• Services business continues to deliver strong margins and customer support.

Production and supply chain

• 737 production ramped to 42 per month, with transition to 47 underway and stabilization expected soon.

• Inventory levels remain high; equilibrium expected at 52 per month, supported by a new Everett production line.

• Sustainable production above 47 per month requires additional capacity and flexibility, with plans to reach 63 per month in the future.

• Spirit's acquisition enables direct investment and improved quality, with $1 billion planned over three years.

• Supply chain is stable for near-term rate increases, with advanced planning for higher rates.

Certification and program updates

• 737-7 and 737-10 certifications are over 80% complete, with final approvals expected by year-end.

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

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

• Lessons from seat certification delays are being applied across programs to improve discipline and reduce future bottlenecks.