GE Aerospace Update Brings Positive to This Portfolio Holding
Much like Apple’s mix of iPhones, aircraft production mix and their price tags matter.
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While we wait for word on FAA certification for Boeing’s (BA) 737 MAX 10 that has been telegraphed as coming later on Tuesday when Transportation Secretary Sean Duffy is scheduled to a visit to Boeing’s factory in Everett, Washington, comments from GE Aerospace (GE) bring another nuggets that points to higher aircraft production levels ahead at Boeing.
During the GE earnings call, management shared that engine deliveries to Boeing continued to increase through Q3 2026. That strongly suggests GE is making progress in expanding output of its GEnx engines, which power Boeing’s 787 Dreamliner. Boeing currently produces around eight Dreamliners per month and aims to increase that rate to 10 before eventually reaching 14. As those production rates increase, so too should deliveries of that higher priced aircraft.
That wasn’t a throw away comment. Much like Apple’s (AAPL) mix of iPhones, we have to be mindful of Boeing mix of aircraft when it comes to production and deliveries, and the impact on revenue and cash flow. Subject to order specifications and models, the 787 Dreamline has a list price that spans $224.6 to $338.4 million while the analogous range for the 737 family is $89.1 to $134.9 million. That $134.9 million figures was the last published list price for the 737 MAX 10, and that reinforces the point that production and delivery mix in the coming quarters matter.
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At the time of publication, TheStreet Pro Portfolio was long AAPL and BA.
