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Boeing's production surge under Kelly Ortberg boosts profitability

Jun 1, 2026, 2:00 AM10
(Update: Jun 1, 2026, 2:00 AM)
American businessperson and corporate director, retired Chief Executive Officer, Collins Aerospace
American global aerospace and defense corporation

Boeing's production surge under Kelly Ortberg boosts profitability

  • Kelly Ortberg has implemented a cultural shift at Boeing, focusing on respect and interpersonal conduct in performance evaluations.
  • The defense and space sector has turned slightly profitable after significant losses, with an operating margin of 3.1% in Q1 2026.
  • Boeing is projected to achieve over $10 billion in free cash flow, but concerns remain about the impact on next-generation aircraft development.
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In the United States, Kelly Ortberg took over as CEO of Boeing during a significant crisis for the company, which was facing its worst challenges in decades. His leadership approach has focused on rebuilding the company by prioritizing the quality of aircraft production over short-term financial gains. Ortberg has emphasized the importance of treating employees with respect and tying their performance evaluations to their interpersonal conduct, which has led to a cultural shift within the organization. Under his guidance, Boeing's defense and space sector has shown signs of recovery, turning slightly profitable after suffering an operating loss of over $5.4 billion in 2024. The division's profitability has improved, with a reported operating margin of 3.1% in the first quarter of 2026, thanks to a strategic focus on cash flow and operational efficiency. Ortberg has also successfully increased the production rate of the Max aircraft, with expectations to ramp up to 52 units per month by the end of 2026, a significant improvement from previous levels. This increase in production is expected to contribute to Boeing's projected free cash flow of over $10 billion. However, there are concerns about whether this focus on immediate cash flow might hinder the development of next-generation aircraft, which is crucial for the company's long-term future. As Ortberg continues to navigate these challenges, his cautious yet effective approach has garnered praise from industry insiders, who recognize the potential for a more sustainable and profitable Boeing in the years to come.

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