Boeing shares closed higher on Friday, rising 1.5% to $242.96, as investors weighed a mix of regulatory developments and new defense business. Trading volume reached approximately 6.8 million shares ahead of the holiday weekend.
Regulatory Focus on Older 737 Models
The Federal Aviation Administration issued a proposed airworthiness directive late Friday targeting older Boeing 737-100 through -500 series aircraft. The action follows reports of cracks in the fuselage skin and would mandate regular inspections for cracking or corrosion. The FAA is accepting feedback on the directive through March 30.
Defense Contracts and International Orders
Boeing secured a sole-source contract from the U.S. Air Force valued at over $100 million to produce GBU-57 "Massive Ordnance Penetrator" bunker-buster bombs, with deliveries scheduled to begin in January 2028. Separately, India granted preliminary approval for a $40 billion military modernization plan that includes the acquisition of Boeing P-8I maritime reconnaissance aircraft.
Supply Chain and Quality Metrics
The aerospace giant highlighted significant improvements in its supply chain, noting a 60% reduction in defects from key supplier Spirit AeroSystems after Boeing tightened its inspection protocols. A senior executive stated the company is spending 40% fewer hours addressing supply-chain issues compared to 2024.
As markets reopen after the Presidents Day holiday, analysts will monitor Boeing's ability to maintain production stability and avoid new quality or regulatory setbacks that could impact delivery schedules and customer confidence.
