Boeing falls 6% after CEO warns on cash flow and output

Boeing shares dropped 6% on Wednesday, 16 September 2026, after President and Chief Executive Officer Kelly Ortberg spoke at the Morgan Stanley Laguna Conference. Ortberg outlined several operational challenges facing the aerospace manufacturer, including output bottlenecks and tempered cash flow expectations.

Ortberg revealed that Boeing is not yet stable at its target production rate of 47 aircraft per month on the 737 program, pointing to wing production as a constraint. Due to delivery hurdles, the company now views generating free cash flow above $2 billion as less likely, though it maintained its full-year guidance range of $1 billion to $3 billion. Inventories are expected to align with production at a rate of 52 aircraft, supported by a new line in Everett.

Regarding aircraft programs, Ortberg stated that certification for the 737 MAX 10 is coming very soon after finishing all flight testing. The model represents roughly 30% of the 737 backlog. For the 777X, certification testing continues and is expected to spill into 2027, with deliveries still planned for that year as contract discussions proceed with airlines. Ortberg also noted an incremental volume of orders from China.

The chief executive also flagged risks of defense program charges and engine delivery delays for the 787 program. On labor, Boeing is preparing contingency plans and trying to avoid a work stoppage with the SPEEA union during contract negotiations, warning that a strike would shut down the 777X certification program.