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    Home»Business»Another jump in Boeing deliveries shows why we got into the stock and want to stay in
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    Another jump in Boeing deliveries shows why we got into the stock and want to stay in

    franperez66q@protonmail.comBy franperez66q@protonmail.comJune 9, 2026No Comments5 Mins Read
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    Boeing ‘s monthly deliveries are up yet again — great news for investors betting on the U.S. plane maker’s continued revival. The company on Tuesday reported 60 deliveries for May, marking its strongest month of the year. That’s up from 47 in April and 33% higher than May 2025. The May results included 51 deliveries for top-selling 737 Max jets and six for 787 Dreamliner widebody planes. The 737 Max had its highest month of deliveries since December 2024. Through the end of May, Boeing delivered 250 aircraft — 30 more than the first five months of 2025. At this pace, 2026 could eclipse last year’s total of 600. The upward trajectory in deliveries is crucial for Boeing because it can lead to better free cash flow after years of burning cash. Deliveries get recorded when Boeing receives cash from its customers. FCF can assess not only the company’s financial health but also the turnaround progress under Kelly Ortberg, who took over as CEO nearly two years ago to help clean up the company’s myriad issues. Improving deliveries can also help Boeing hit its full-year free cash flow guide 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 post-earnings call in April, CFO Jay Malave said that free cash flow should turn positive in the second half. According to FactSet, analysts estimate a cash outflow of $218 million in Q2, with FCF of $1.15 billion and $2.95 billion in the third and fourth quarters, respectively. On the front end of the business, Boeing orders in May did come in a bit soft. The company booked 27 new orders last month, compared to 136 in April. This slowdown, however, is not investment thesis changing for us as orders tend to be lumpy. That’s why we focus on deliveries, which is a function of free cash flow. Tuesday’s delivery numbers are the latest in a string of positive developments for Boeing. Last month, management said the company met Federal Aviation Administration (FAA) regulatory requirements to increase 737 Max production. A few weeks later, Ortberg announced that Boeing can also raise its 737 production to 47 jets per month, up from 42, after consulting the agency. “We’re off and rolling at the 47 rate, and we should be there in the next couple months,” Ortberg said at the Bernstein Annual Strategic Decisions Conference. “I think the whole world’s watching to ​make sure we make [rate] 47 and 52.” A higher production run rate can not only help Boeing meet delivery expectations but also catch up on its backlog, which extends past 2030 at 6,178 planes as of May 31. “It also indicates that the company is operating more efficiently as the turnaround takes hold,” noted Zev Fima, a portfolio analyst for the CNBC Investing Club. China’s Commerce Ministry also confirmed an agreement to buy 200 Boeing aircraft. It was Boeing’s first order from the world’s second-largest economy in almost a decade. A Washington state official told CNBC that Boeing “has a lot of demand,” and should see more orders in the future. BA YTD mountain Boeing (BA) year to date performance Despite the good news, the stock has lagged. Shares are down more than 9% over the last month and down 15% from their 52-week high of $254 on Jan. 27. Boeing stock was flat Tuesday. During our May Monthly Meeting , Jim Cramer said, “I reiterate my bullish prognosis, which should take the stock to the $300s.” He added that “new Club members: Boeing is another to buy right here.” At the time, shares were around $224. Jim has repeatedly pointed out that Boeing is one of the biggest beneficiaries of the increase in trade deals under the Trump administration. The China order is the latest example. A great leader like Ortberg is just the cherry on top after previous, spotty management teams were unable to get Boeing back on track after production problems and safety concerns. (Jim Cramer’s Charitable Trust is long BA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.



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