Another jump in Boeing deliveries shows why we got into the stock and want to stay
Boeing’s monthly deliveries are back again – good news for investors betting on the US plane maker’s continued revival. The company on Tuesday reported 60 deliveries in May, marking its strongest month of the year. That’s up from 47 in April and 33% more than May 2025. May results included 51 deliveries of the best-selling 737 Max jets and six 787 Dreamliner widebody planes. The 737 Max had its highest delivery month since December 2024. By the end of May, Boeing had delivered 250 planes — 30 more than in the first five months of 2025. At this rate, 2026 could eclipse last year’s total of 600. The increase in freight traffic is essential to allow Boe to burn cash for free. Delivery is recorded when Boeing receives cash from its customers. FCF can assess not only the company’s financial health but also the progress of change under Kelly Ortberg, who took over as CEO nearly two years ago to help clean up the company’s many problems. Improving delivery could also help Boeing reach its full-year free cash flow guidance of $1 billion to $3 billion. The company started 2026 in the hole, with a cash burn of $1.45 billion in the first quarter. During a post-earnings call in April, CFO Jay Malave said free cash flow should be good for the second quarter. According to FactSet, analysts estimated cash flow of $218 million in Q2, with FCF of $1.15 billion and $2.95 billion in the third and fourth quarters, respectively. In early business, Boeing orders for May came in soft. The company booked 27 new orders last month, compared to 136 in April. This slow movement, however, is not a revolutionary investment theory as orders tend to be lumpy. That’s why we focus on delivery, which is a free cash flow activity. Tuesday’s delivery numbers are the latest in a string of positive developments for Boeing. Last month, executives said the company met Federal Aviation Administration (FAA) regulatory requirements to ramp up production of the 737 Max. A few weeks later, Ortberg announced that Boeing could once again increase its 737 production to 47 jets a month, from 42, after consulting with the agency. “We’ve gone up and down by 47, and we should be there in the next few months,” Ortberg said at the Bernstein Strategic Decisions Annual Conference. “I think the whole world is watching to make sure we succeed [rate] 47 and 52.” The high production rate of production can not only help Boeing meet delivery expectations but also reach the backlog, which extends to 2030 to 6,178 aircraft as of May 31. “It also shows that the company is working very well as changes continue,” noted Zev Fima, a China portfolio analyst who ensures Club purchases. 200 Boeing aircraft was the first order of Boeing from the world’s second largest economy in nearly a decade telling CNBC that Boeing “has a lot of demand,” and should see more orders in the future so far BA YTD performance Mountain Boeing (BA) Despite the good news, the stock fell more than 5% to a high of $254 on Jan. 27. Boeing stock was flat on our monthly Tuesday, Jim Cramer said, “I repeat bullish prognosis, which should take the stock to the $300s.” deals under the Trump administration. The Chinese order is the latest example. A top leader like Ortberg is the cherry on top after previous, tainted management teams couldn’t get Boeing back on the road to success after production and safety issues (Jim Cramer’s Charitable Trust is long for BA. See here for a full stock list.) a CNBC subscriber will trade 45 minutes after sending a trade alert before buying or selling a stock in his charity portfolio if Jim mentions a stock on CNBC TV, he waits 72 hours after issuing a trade alert before making a trade. OUR DISCLAIMER IS NO OBLIGATION EXISTS, OR IS CREATED, FOR YOUR ACCEPTANCE OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB IS WITH NO SPECIFIC RESULT OR GUARANTEED RESULT.
