The Boeing Company BA appears to be making steady progress in its turnaround efforts, supported by improving commercial aircraft production and delivery trends.
During first-quarter 2026, Boeing delivered 143 commercial airplanes, reflecting a 10% increase from the year-ago quarter’s level. The improvement was driven by higher production and deliveries across key aircraft programs, including the 737 and 787 families. The increase in deliveries helped the Boeing Commercial Airplanes (“BCA”) unit’s revenues rise 13% year over year to $9.2 billion.
The 737 program is currently producing aircraft at a rate of 42 per month, while the 787 program has stabilized production at eight aircraft per month. The company also expects certification of the 737-7 and 737-10 variants in 2026, with first deliveries anticipated in 2027. The 777X program also continues to advance through certification testing, with initial deliveries expected in 2027. These developments could support future production growth and strengthen Boeing's competitive position in the global aviation market.
Strong customer demand remains another positive factor. Boeing booked 140 net commercial aircraft orders during the quarter, including significant orders for the 737 and 787 programs. The BCA segment ended the quarter with a backlog exceeding 6,100 aircraft valued at nearly $576 billion, providing substantial long-term revenue visibility.
The company also benefited from improving its overall financial performance. First-quarter revenues rose 14% year over year to $22.2 billion, while operating cash flow improved substantially from the prior-year period’s level. The gains were driven by higher commercial aircraft deliveries and better operational execution.
Aerospace Companies Benefit From Strong Aircraft Demand
Growing global air travel demand continues to support major aerospace manufacturers. Some industry participants benefiting from this trend are discussed below:
Airbus SE EADSY remains one of the world's largest commercial aircraft manufacturers and continues to benefit from strong airline fleet renewal demand. The company maintains a substantial order backlog across its A320neo, A350 and A220 aircraft families.
Embraer S.A. EMBJ continues to expand its presence across both commercial aviation and defense markets. Its firm order backlog reached $32.1 billion in first-quarter 2026, up 22% year over year, led by a 50% increase in Commercial Aviation backlog to $15.0 billion.
BA Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year improvement of 98.6% and 2,813.2%, respectively.
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BA Stock Trades at a Discount
In terms of valuation, BA’s forward 12-month price-to-sales (P/S) is 1.62X, a discount to the industry’s average of 2.51X.
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BA Stock’s Price Performance
In the past six months, the company’s shares have risen 4.4% against the industry’s 5.3% decline.
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BA’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).