A union representing approximately 1,600 white-collar employees at Spirit AeroSystems, Boeing’s primary fuselage supplier, announced a tentative collective bargaining agreement on January 15, 2026. The deal includes a wage increase averaging 3.5% per year over a four-year term, improved health-care cost sharing and a streamlined grievance process. Boeing and Spirit management estimate the agreement will reduce the risk of production delays on the 737 and 787 lines, safeguarding an expected output ramp-up of 50 jets per month by mid-2027. The new contract remains subject to ratification by union members but, if approved, would avert costly work stoppages that could impair Boeing’s delivery targets and free cash flow generation in 2026.

Over the past nine months, Boeing’s stock has climbed roughly 50%, driven by a 23% rise in year-over-year commercial airplane revenue and renewed enthusiasm around defense and services valuations. Order intake reached 520 jets in the fourth quarter, bringing the firm’s total backlog to 5,600 aircraft, the highest level since 2019. Regulatory developments also played a key role: the Federal Aviation Administration issued its final airworthiness directive clearing the grounded 737 MAX software modification, while European and Asian authorities completed their separate recertification processes. These milestones pave the way for reconfirmed deliveries to major carriers, including commitments for 250 narrowbodies to low-cost operators in Asia.

Boeing reported 160 jet deliveries in the fourth quarter of 2025, up from 130 in the same period a year earlier. For the full year, the company delivered 600 aircraft, marking the highest annual total since 2018 and reflecting a 20% year-on-year increase. The 737 program led this growth, accounting for 65% of net deliveries, while widebody shipments rose 15% as the 787 and 777X programs advanced through final assembly. Management attributed the execution gains to a leaner supply-chain footprint and accelerated hiring at final-assembly plants. Improved throughput has also trimmed inventory holding costs by an estimated $850 million, supporting positive operating cash flow guidance for 2026.

In early January, Boeing announced tentative agreements resolving claims related to the 2019 Ethiopian Air 737 MAX crash. The company has provisioned $1.8 billion to settle lawsuits with families of passengers, including a Canadian plaintiff who lost six relatives. These settlements, which require court approval, aim to eliminate a significant portion of lingering litigation risk by mid-2026. Boeing expects the agreements to reduce annual legal expense by $150 million and improve earnings volatility, reinforcing executives’ commitment to capital discipline and shareholder returns in the coming fiscal year.