Fitch Upgrades Boeing Outlook to Stable Citing Production, Debt Reduction

Fitch Ratings upgraded Boeing's credit outlook from "negative" to "stable," maintaining its BBB- rating, signaling improved financial and operational stability. The upgrade reflects Boeing's recovery from last year's machinists' strike, sustained production increases—particularly for the 737 Max and 787 models—and enhanced financial flexibility following a $10.55 billion sale of its Jeppesen subsidiary and a $24 billion equity issuance. Fitch expects Boeing to reduce its gross debt below $50 billion by 2026 and forecasts improvements in cash flow and EBITDA leverage, with production targets of 38 737 Max jets per month by Q3 2025 and eight 787 jets monthly by 2026. Additionally, Boeing has been reducing its inventory of stored 737 Max jets, aiming to normalize production-to-delivery cadence and improve working capital. Analysts provide an average price target suggesting roughly a 10% upside from current levels, while GuruFocus estimates a slight downside risk based on fair value assessments. Overall, the stable outlook indicates Fitch's confidence that Boeing's credit rating will remain unchanged in the near term due to these operational and financial improvements.