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    Did FAA Approval of the 737-7 Just Shift Boeing's (BA) Backlog Conversion Outlook?

    Simply Wall St·08/18/2026 02:27:26
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    • In early August 2026, Boeing received an amended type certificate from the U.S. Federal Aviation Administration for its new 737-7 aircraft, clearing the smallest and longest-range member of the 737 MAX family for commercial service after a multi-year testing and safety review program.
    • This certification not only enables deliveries to launch customer Southwest Airlines, but also reflects Boeing’s efforts to align more closely with evolving regulatory expectations on safety, human factors, and quality across future aircraft development.
    • We’ll now examine how the 737-7’s long-awaited FAA certification could shape Boeing’s investment narrative, especially around backlog conversion.

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    Boeing Investment Narrative Recap

    To own Boeing, you need to believe the company can turn its large backlog and improving profitability into durable cash generation while steadily repairing its safety and regulatory track record. The 737-7’s FAA certification directly reduces one of the most pressing near term risks around further delays, while sharpening the focus on the remaining challenge of lifting loss making commercial margins into consistently positive territory.

    Among recent developments, the Memorandum of Agreement with Odysight.ai stands out, as it points to Boeing investing in predictive maintenance capabilities that could support higher aircraft reliability and service revenues over time. While this partnership is small next to the 737-7 milestone, both touch on the same catalyst: rebuilding confidence with regulators and airline customers through better safety processes, data, and operational performance.

    Yet beneath the relief of 737-7 certification, a key risk investors should still be watching is Boeing’s sizeable debt load and...

    Read the full narrative on Boeing (it's free!)

    Boeing’s narrative projects $125.6 billion revenue and $7.9 billion earnings by 2029. This requires 10.9% yearly revenue growth and a roughly $6.0 billion earnings increase from $1.9 billion today.

    Uncover how Boeing's forecasts yield a $270.00 fair value, a 19% upside to its current price.

    Exploring Other Perspectives

    BA 1-Year Stock Price Chart
    BA 1-Year Stock Price Chart

    While consensus focused on backlog conversion, the most bullish analysts saw US$132.7 billion revenue and US$11.7 billion earnings by 2028, which is far more optimistic than the pre news concerns about ongoing quality issues and delayed certifications, so this latest 737-7 milestone could push some of those views even further apart.

    Explore 7 other fair value estimates on Boeing - why the stock might be worth just $260.00!

    Reach Your Own Conclusion

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.