Boeing’s Strategic Moves Signal Production Momentum

Boeing is accelerating operations within its most crucial program, outlining definitive targets for increased 737 MAX output while simultaneously restructuring management in a pivotal region. For investors, a central question emerges: does this blend of operational progress and strategic realignment provide a sustainable foundation for the stock's ongoing recovery?

Alongside its production roadmap, Boeing is making strategic moves in high-growth markets. Effective at the start of the year, Fahad Al Mheiri will assume the role of Vice President for the Middle East, Gulf, and North Africa. He succeeds Kuljit Ghata-Aura and joins from Raytheon Emirates.

This appointment is more than a simple title change. The region is among the world's most dynamic aerospace markets, both commercially and militarily. Strong local leadership is intended to bolster existing order books for commercial aircraft and secure new defense projects.

In the defense sector, Boeing also announced a new partnership. The company will now collaborate with Anduril Industries on the U.S. Army's "Enduring Shield" program. Anduril will supply solid rocket motors for a new interceptor missile. This broadens Boeing's supplier base for a critical security program, mitigating risks associated with single suppliers and specific technological dependencies.

There is also movement in the space segment. At United Launch Alliance (ULA), the joint rocket venture between Boeing and Lockheed Martin, long-time CEO Tory Bruno is stepping down. While ULA operates independently, leadership changes at the top are closely monitored due to the venture's role in strategic U.S. space and security missions. Investors are watching for continuity in bidding processes and access to government contracts.

The 737 MAX Drives the Timeline

The positive market response was triggered by a detailed update on the 737 MAX program. Katie Ringgold, Vice President and General Manager of the 737 program, stated that Boeing aims to ramp production to 47 aircraft per month by "late spring or early summer" 2026.

This follows an earlier increase from 38 to 42 jets per month in September 2025. Ringgold characterized 2025 as a "year of stability," with 2026 intended to become the "year of growth." The logic is clear: supply chains and quality processes first needed stabilization before further expansion was feasible. The newly communicated target directly addresses those bottlenecks and regulatory oversight that constrained output in recent years.

Should investors sell immediately? Or is it worth buying Boeing?

The scale is particularly significant for the market. Production rates below 38 planes per month notably limited cash generation in 2024 and early 2025. Analysts have long viewed approximately 50 aircraft per month as a threshold for robust free cash flow. By targeting 47 units by mid-2026, Boeing has presented a timeline that appears ambitious yet realistic, and more aligned with supply chain capabilities than some previous, unmet announcements.

Contextualizing the Recent Stock Performance

These developments build upon an existing recovery in Boeing's share price. Over the past 30 days, the stock has advanced by approximately 18%. With a share price of 183.32 euros, the equity sits clearly above its 50-day moving average and well above its 52-week low, though still noticeably below the high of the past twelve months.

Several factors support this market view. First, the confirmed 737 MAX production plan creates greater transparency regarding future unit volumes, and consequently, revenue and cash flow. Second, the personnel decisions and defense partnerships demonstrate Boeing is also working on key levers outside of commercial aviation.

Another piece of the puzzle is the handling of regulatory requirements in the long-haul and cargo segment. Reports indicate Boeing is seeking an exemption from the U.S. Federal Aviation Administration (FAA) for an additional 35 units of the 777 freighter. This is due to stricter emissions standards taking effect in 2028, which would impact the current model without a waiver. An approval would allow for significant sales of the outgoing freighter before the 777X freighter assumes its role, thereby securing additional revenue.

Outlook: Execution is Key

The next significant test will come with quarterly results on February 4, 2026. This will reveal the extent to which factory stabilization is already translating into improved margins and cash flows. The critical factor remains whether Boeing can execute the planned increase to 47 planes per month without new quality or supply chain setbacks.

Concurrently, certification progress for the remaining MAX variants, particularly the MAX 7 and MAX 10, will shape the overall picture. A smooth process here would operationally reinforce the currently outlined recovery path—providing a stronger foundation for the recently strong trend in the share price.