On the call, West noted that Boeing’s production quality and efficiency are improving. If this continues, the company expects to soon seek FAA approval to increase the 737 Max production rate—an important step in rebuilding after years of setbacks. Boeing increased 737 Max production to 38 units per month in Q2 and plans to discuss raising the rate to 42 per month.
The most important metric Morningstar is tracking on Boeing’s path to recovery is the production and delivery rate of its 737 and 787 jets, equity analyst Nic Owens wrote in a Tuesday note. Morningstar adjusted its 2025 forecast to reflect recent progress and raised its fair value estimate from $242 to $249 per share. While the largest special charges and fleet groundings are largely behind Boeing, Morningstar expects another year of resolving labor, manufacturing, and supply chain issues that continue to affect production, according to Owens.
During the call, Ortberg thanked West for his “outstanding work” over the past four years in helping to stabilize the business and position it for growth. “I particularly want to thank him for the support he’s given me this past year,” Ortberg said.
Commenting on Boeing’s progress, “It’s turning a big ship around,” Ortberg said. “We still have a lot of work to do.”
