Boeing stock gains as FAA clears 737 MAX production increase to 42/month

Published 20/10/2025, 13:38
© Reuters.

Investing.com - Boeing (NYSE:BA), the aerospace giant with a market capitalization of $161 billion, has received clearance from the Federal Aviation Administration to increase production of its 737 MAX aircraft from 38 to 42 planes per month, according to Bernstein SocGen Group. The company’s stock has shown strong momentum, gaining over 31% in the past six months.

The FAA announced the production rate approval on Friday, October 19, aligning with Boeing’s previously stated timeline to reach the higher rate by year-end. Bernstein analyst Douglas Harned, who maintains an Outperform rating and $287.00 price target on Boeing stock, noted that one key performance indicator related to rework amount was essentially completed last month. According to InvestingPro data, the company operates with moderate debt levels while maintaining annual revenues of $75.3 billion.

This production increase for the 737 MAX follows Boeing’s earlier ramp-up of 787 production to 7 aircraft per month, with plans to reach 10 per month in 2026. Historically, Boeing’s stock performance has shown correlation with production increases, which are now underway for both key aircraft programs.

Boeing CEO Kelly Ortberg and other executives had consistently indicated the company was on track to receive this clearance. The production increase represents a significant milestone for Boeing as it continues to recover from earlier manufacturing challenges.

Boeing is scheduled to report its third-quarter earnings on October 29, when more details about production plans are expected to be shared with investors.

In other recent news, Boeing has received approval from the Federal Aviation Administration (FAA) to increase the production rate of its 737 MAX aircraft from 38 to 42 planes per month. This development aligns with analysts’ expectations for Boeing to reach this production target by the year’s end. Additionally, Boeing delivered 55 aircraft in October, including 40 MAX and 7 Dreamliner 787s, as reported by UBS, which reiterated its Buy rating on Boeing with a price target of $280.00. Meanwhile, Boeing and the International Association of Machinists and Aerospace Workers (IAM) District 837 are set to resume mediation talks to resolve a strike that has lasted nearly 12 weeks in St. Louis. The union has also filed an unfair labor practice charge against Boeing with the National Labor Relations Board, involving more than 3,200 striking workers. These workers are responsible for assembling fighter jets and munitions at Boeing’s St. Louis facilities. In a separate incident, a plane carrying U.S. Defense Secretary Pete Hegseth made an emergency landing in the UK due to a cracked windshield, though all passengers, including Secretary Hegseth, were reported safe.

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