The jet manufacturer’s stock rose about 9% on Tuesday.
Shares of Boeing (NYSE:BA) jumped about 9% on December 2, making the jet manufacturer one of the top stocks on the day.
There was clear catalyst for the move — good news delivered by Boeing CFO Jay Malave at the UBS Global Industrials and Transportation Conference on Tuesday morning.
Malave told the gathering of investors and analysts at the conference that the company expects to increase its deliveries of 737 and 787 jets in 2026. In addition, reported CNBC, Malave said that Boeing is anticipating the final certification of its 737 Max 10 jet next year.
The 737 Max 10 is the largest in the line of 737 jets with the capacity to seat about 230 passengers.
In addition, the CFO said the company plans to close on its deal to acquire aircraft parts supplier and manufacturer Spirit AeroSystems (NYSE:SPR) by the end of the year, reported Investors Business Daily (IBD). This would give Boeing direct control and oversight of a critical piece of its supply chain and streamline operations.
Improving its free cash flow
These and other moves, said Malave, will help the company improve its free cash flow. Boeing anticipates $2 billion in free cash flow in 2025, according to IBD. This marks a major turnaround from 2024 when it had negative cash outflow of $14 billion.
Further, for 2026, the jet manufacturer expects free cash flow in the low-single-digit billions, per IBD. Long term, the company is targeted $10 billion in free cash flow, according to the IBD report.
It is good news for investors as the struggling jet maker seeks to turn around its fortunes. Boeing has been beset by a series of problems over the past few years, including safety and quality control concerns, a slowdown in deliveries and delays, leadership turnover, worker strikes. and consistent net losses.
The stock price plummeted to about $134 per share back in April but has since climbed about 52% to $204 per share. Boeing stock currently up about 15% year-to-date, including Tuesday’s 9% gain.
Boeing has a median price target of $251 per share, which suggests 23% upside and is rated a buy by most analysts.
There should be a slew of updates coming from analysts in the days ahead based on the information delivered at the UBS conference, so stayed tuned for more visibility into this potential turnaround story.
