Boeing stock rallied Tuesday as CFO Jay Malave detailed the Dow Jones aerospace manufacturer's outlook at the UBS Global Industrials and Transportation Conference.

Boeing (BA) financial chief Malave said that the manufacturer's recovery is "in full force," according to reports.

Malave noted that deliveries in November will "probably be a little light" due to the holidays but that production rollouts are "pretty much exactly where we expected." Boeing expects that 2026 deliveries for 737s and 787s will be higher compared to 2025. It also expects to achieve certification of the 737 Max 10 by the end next year.

The Dow Jones manufacturer sees 2025 free cash flow around $2 billion, and forecasts free cash flow in the low, single-digit billions for 2026. He maintained that Boeing's long-term goal of achieving $10 billion in free cash flow is "possible."

He also said that Boeing is on track to complete its acquisition of key supplier Spirit AeroSystems (SPR) by the end of the year. Boeing in July 2024 announced plans to buy the struggling components maker for $4.7 billion in an all-stock transaction.

Boeing Woes

Malave's conference comments come after Deutsche Bank reported it expects Boeing's November sales to fall compared to the past two years. The bank forecasts that Boeing delivered 44 new planes during the month, down from 48 last year and 56 in 2023, respectively.

The weak November means that Boeing needs strong December sales numbers to match Wall Street estimates for the year.

The current consensus forecast for total fourth-quarter deliveries is 160, according to Deutsche Bank. In the two-month span of October and November, Boeing delivered a total of 97 jets. That implies it would need to deliver 63 planes in order to reach the 160 units investors expect. That means Boeing needs its best December performance since 2023, when it delivered 67 planes. However, the most monthly deliveries that Boeing achieved this year was 60 in June.

The manufacturer has been subject to production caps and safety oversight following 737 Max crashes in 2018-2019, as well as a blowout during an Alaska Airlines (ALK) flight in 2024. Other issues such as union strikes have complicated production efforts.

Despite the setbacks, Boeing has a backlog of about 5,900 planes that are worth an estimated $636 billion, according to the company. In an earlier analyst report, Deutsche Bank downgraded Boeing stock from a buy to a hold over fears its cash flows would suffer because of its production delays.

Boeing Stock

BA shares popped 10.2% Tuesday, leading the 30 stocks listed on the Dow Jones Industrial Average. The stock on the move rebounded above its 21-day line and 200-day moving average, nearing its 50-day line.

Boeing stock has been on a downtrend since late August, ending Monday 23% below its July high. Shares are up about 16% this year.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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