Boeing Stock Falls as Company Takes Hard Line in Negotiations with Strikers

Boeing (BA) stock falls as it takes a hard line on negotiations with striking machinists. The company has pulled a $5,000 signing bonus off the table and stated that no talks are scheduled. Despite production still in progress on major releases, the strike's impact is evident. Meanwhile, reports suggest the C-17 Globemaster may make a comeback due to increasing demand for a cargo plane that can handle rough terrain. Analysts have a Strong Buy consensus rating on BA.

Boeing (BA) stock has experienced a decline following the company's decision to take a hard line on negotiations with striking machinists. The company has withdrawn a $5,000 signing bonus and stated that no talks are scheduled. Despite ongoing production of major releases, the strike's impact is evident. Additionally, reports suggest that the C-17 Globemaster may make a comeback due to increasing demand for a cargo plane capable of handling rough terrain.

The strike has led to production delays and uncertainty, affecting Boeing's financial outlook. The company's recent earnings report showed a missed earnings per share (EPS) estimate and a significant revenue increase compared to the same period last year. However, the strike and subsequent production delays have created further challenges for the company.

Analysts have maintained a Strong Buy consensus rating on BA, reflecting their confidence in the company's long-term prospects despite current setbacks. The stock has been trading at a price-to-earnings ratio of -13.88 and a beta of 1.48, indicating a relatively high risk compared to the broader market.

Boeing's 737 Max 10 jetliner production has been delayed due to deicing system issues, with certification now expected in 2026. The company is working to solve the problem, but the engineering design did not yield in the time frame anticipated. This delay has also affected the 737 MAX 8 and 737 MAX 9 variants, which are currently flying. The FAA has ordered a pilot manual amendment to warn pilots to turn off the anti-icing system in dry air.

Despite these challenges, Boeing's stock remains supported by institutional investors and hedge funds. Mizuho Securities USA LLC, for example, held 60,058 shares of Boeing's stock as of its most recent filing with the Securities and Exchange Commission, worth $10,243,000. Other institutional investors have also increased or reduced their stakes in Boeing, indicating varying levels of confidence in the company's future performance.

The C-17 Globemaster's potential return to production could provide a boost to Boeing's cargo plane offerings, addressing the growing demand for rugged, high-capacity aircraft. This development, if confirmed, could offset some of the challenges posed by the machinists strike and production delays.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-mizuho-securities-usa-llc-has-1024-million-holdings-in-the-boeing-company-nyseba-2025-08-09/
[2] https://www.heraldnet.com/business/when-boeing-expects-to-start-production-of-737-max-10-plane-in-everett/