Boeing shares closed slightly lower on Tuesday, declining 0.3% to $243.89, as the market assessed the aerospace giant's latest operational updates. The stock traded between $240.88 and $247.78 during the session.
Production Ramp-Up Plans
The company announced plans to establish a fourth 737 MAX production line at its Everett, Washington facility by mid-summer. According to 737 program general manager Katie Ringgold, Boeing intends to increase output by approximately 15% over the next 18 months, targeting a production rate of 47 jets per month. This expansion comes as the company continues its gradual increase from 38 to 42 jets monthly.
January Performance Metrics
Boeing reported delivering 46 aircraft in January, including 38 737 MAX jets and five 787 Dreamliners. The company secured 107 gross orders with four cancellations, resulting in 103 net new orders. This performance exceeded Airbus, which reported 19 deliveries and 49 net orders for the same period.
Key orders included a 50-jet 737 MAX agreement with Aviation Capital Group and a 30-jet 787 commitment from Delta Air Lines. Air India finalized an order for 20 737-8 aircraft and disclosed a previous order for 10 737-10 models. The company noted it outpaced Airbus in net orders for 2025, marking the first time in seven years.
Defense Contract Win
Separately, Boeing secured a U.S. Air Force contract to modernize the C-17A Globemaster III flight deck, replacing legacy avionics with a modular open-systems architecture designed to facilitate future upgrades. The company stated the Air Force intends to maintain the fleet's operational capability through 2075.
For investors, the central question remains whether Boeing can successfully increase production rates without encountering quality control issues, rework requirements, or supply chain constraints. While expanding capacity through additional production lines provides growth potential, it also introduces new operational complexities that could impact delivery schedules and cash generation.
The company's February orders and deliveries report, expected in early March, will provide insight into whether January's positive momentum can be sustained. Market participants will also monitor progress on the Everett facility expansion and Boeing's ability to maintain its advertised higher production rates.
