Boeing Shares Surge to Annual High on Regulatory and Defense Wins

Boeing's stock achieved a significant milestone on Friday, closing at a fresh 52-week peak. This upward momentum is fueled by a pivotal step forward in certifying its 737 MAX 10 aircraft and the securing of substantial defense contracts, signaling a potential turnaround for the aerospace giant despite lingering technical challenges.

Providing a solid foundation for the company's recent performance, Boeing's Defense, Space & Security (BDS) unit announced a series of major contract wins around the turn of the year, collectively valued at approximately $12.8 billion. Among these agreements is an $8.6 billion deal to supply Israel with F-15IA fighter jets. The division also secured a logistics support contract for the E-4B "Doomsday Plane," further bolstering its order book.

This influx of defense revenue has contributed to a notable 41% appreciation in Boeing's share price over the past twelve months. Trading concluded on Friday at $234.53, firmly establishing a new annual high.

FAA Grants Critical Certification Milestone for MAX 10

A primary driver behind the current investor optimism is a key regulatory decision from the U.S. Federal Aviation Administration (FAA). The agency has officially authorized Boeing to commence "Phase 2" of certification flight testing for the 737 MAX 10 variant. This stage, known as a Type Inspection Authorization (TIA), permits FAA pilots to conduct in-flight validation of the jet's safety systems—a mandatory prerequisite for final commercial approval.

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This progress is crucial for Boeing's competitiveness against the Airbus A321neo. The company holds an order backlog for over 1,200 MAX 10 aircraft, which includes a recent commitment from Alaska Airlines for 105 jets. However, the path to full certification is not yet clear. Analysts point to an unresolved technical issue concerning the engine anti-icing system, leading to projections that final regulatory approval may not occur until late 2026.

Cautious Tone Ahead of Earnings Report

Despite the celebratory market reaction, Boeing's leadership is tempering expectations. In a recent internal memo, CEO Kelly Ortberg emphasized that 2026 will still demand "significant work" to stabilize manufacturing quality and hit the targeted production rate of 42 MAX jets per month.

Investors will gain clearer insight into the financial impact of these efforts on January 27, 2026, when the company releases its quarterly results. Market attention is expected to focus intently on Boeing's forecasts for free cash flow and updates regarding the ramp-up of its production lines.