Boeing CEO Has Revived the Stock in His First Year. There’s More Work to Do.

Kelly Ortberg took the reins of Boeing from former CEO Dave Calhoun in August 2024. (Photo by Win McNamee/Getty Images)

Boeing CEO Kelly Ortberg took over the ailing aerospace and defense company just over a year ago. Thing are going much better at Boeing, but there is still work to be done.

Some of Ortberg’s wins so far include increasing production and improved company culture.

Wall Street is liking the progress it has seen, too.

“We met Boeing CEO Kelly Ortberg [Wednesday] for an update,” wrote JPMorgan analyst Seth Seifman in a Thursday report. “The story here remains one of execution and the progress we have seen this year, combined with management’s plans for the future, leave us encouraged, 737 and 787 [production] rates should increase gradually, with the path to 42 on 737 looking clear.”

The Federal Aviation Administration capped MAX production at 38 a month shortly after an emergency door plug blew out of a 737 MAX 9 jet while in flight in January 2024. Boeing slowed its MAX production to fewer than 38 jets a month, focusing on improving quality and its supply chain, and only recently reached that level.

Higher production is a win for Ortberg. Boeing delivered 806 planes in 2018, earning $9.4 billion in net income. It delivered 348 jets in 2024, losing $12 billion in the process. Deliveries in 2025 and 2026 are expected to be 575 and 715, respectively, according to analyst estimates aggregated by Bloomberg.

Beyond higher production, Boeing is benefiting from the Trump administration’s efforts to reduce the trade deficit, added Seifman.

Boeing’s culture is improving, too.

“One key change has been the evaluation process, which includes scores not only for what employees accomplish but for how they accomplish it as well and whether this advances the company’s values,” added Seifman. A new labor contract that raised wages in the Seattle area following a painful seven-week strike has likely helped, too.

Boeing stock gained 0.2% on Thursday, closing at $236.16, while the S&P 500 and the Dow Jones Industrial Average added 0.3% and 0.2%, respectively. Coming into Thursday’s trading, Boeing stock was up about 33% year to date and about 40% since Ortberg became CEO, a little more than one year ago.

Investors appear pleased with recent developments, but there is still more to do. The company is still waiting for approval to commercialize the MAX 7, MAX 10, and 777x jets. The MAX jets are different versions of the MAX 8 and MAX 9 in service. Boeing expects approval for those in 2026. Seifman expects more 777x flight tests early next year.

Seifman remains positive on Boeing stock, despite any remaining challenges, rating Boeing stock Buy. His price target for shares is $251. Overall, 79% of analysts covering Boeing stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Boeing shares is about $259, up from about $214 a share a year ago.

Write to Al Root at allen.root@dowjones.com