The Boeing Company (BA) Morgan Stanley's 14th Annual Laguna Conference summary

Key accomplishments and challenges

• Achieved 737 MAX 7 certification and increased production rates across several programs, with sustained key metrics and improved company culture.

• Restored FAA redelegation of authority, signaling improved regulatory relationships.

• Defense portfolio progress includes managing fixed price contracts and setting up for future growth.

• Certification programs, especially for the 737 MAX 10, have advanced, with major milestones being reached.

• Biggest challenge has been stabilizing production rates, particularly for the 737 MAX wing production.

Production rates and supply chain

• 737 MAX production at 47 per month, with plans to reach 52 after stabilizing wing production and certifying the new Everett line.

• Supply chain is generally healthy, with current bottlenecks in wing production; inventory levels remain high.

• Inventory management is a multi-year opportunity, aiming to free up several billion dollars in working capital as rates stabilize.

• 787 production stabilized at 8 per month, with engine delivery delays pushing rate 10 to late next year; long-term plans for 14 per month supported by a new assembly facility.

Certification and program updates

• 737 MAX 10 certification expected soon, with 30% of backlog for this model; Everett facility offers flexibility for longer aircraft.

• 777X certification progressing, with some testing delays due to engine issues; deliveries still planned for 2027.

• No significant customer cancellations or discounts for initial 777X units; contract discussions are ongoing.