Boeing, Northrop Moving On Orders, Approvals; Plus Airbus' Engine Issue

Boeing stock continues to trade near a buy point Thursday after the Dow Jones aerospace manufacturer landed over $30 billion in plane orders from Vietnam-based airlines. The announcement comes after the Federal Trade Commission on Wednesday gave its blessing for Boeing’s acquisition of Spirit AeroSystems.

Rival Airbus hit a snag after warning of an engine shortage hampering A320 production. Northrop Grumman continued to climb after announcing plans with the U.S. Air Force to test launch a new intercontinental ballistic missile system, which has been plagued by extensive delays and cost overruns.

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Boeing (BA) late Wednesday announced that it finalized a deal with Vietnam Airlines for 50 737-8 MAX planes, as part of the carrier’s effort to increase its domestic and regional routes as Southeast Asia air travel demand increases. The new planes join Vietnam Airlines’ fleet of 17 787 Dreamliners, while the country’s air traffic is expected to double to more than 75 million annual passengers over the next decade. The $8 billion deal was first announced in 2023.

Boeing on Wednesday also signed a purchase agreement with newly-formed Sun PhuQuoc Airways for up to 40 787 Dreamliners. The order marks the largest Boeing widebody plane order in Vietnamese history, according to the release. Sun PhuQuoc Airways, which formed in November, agreed to pay $22.5 billion for the order, CNBC reported.

Elsewhere, VietJet inked a $965 million financing deal to purchase six Boeing 737-8 planes, according to reports.

Boeing, Spirit AeroSystems Merger

The orders come after the FTC on Tuesday finalized a consent order in Boeing’s acquisition of the airplane components maker Spirit AeroSystems. The move marks the end of any ongoing investigations or litigation into the proposed deal. Instead, a consent order creates a set of legally binding circumstances a company — in this case Boeing — must follow as part of the regulatory approval.

Boeing announced in December it would buy Spirit AeroSystems for a reported $8.3 billion. As the two companies sought regulatory approvals, the FTC asked Boeing to divest certain Spirit AeroSystems assets, including the pieces of its business that serviced its rival Airbus.

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Much of the discussion around Boeing centers on if and when it will succeed in returning its production to full capacity, after regulators capped it following a slew of safety incidents in 2018 through 2024. If that were to happen, the greater the permitted production level, that faster Boeing would be able to work through its roughly 6,000-plane backlog.

Airbus Engine Woes

Meanwhile, rival Airbus (EADSY) retreated early Thursday after announcing a lower delivery guidance due to a RTX (RTX)-related engine shortage.

CEO Guillaume Faury during the earnings call noted that noted that the engine shortage comes from “Pratt & Whitney not matching or needs nor our orders,” which prompted the company to “significantly reduce” its delivery outlook.

Airbus now expects to produce 70 to 75 A320 planes per month by the end of next year, which is at the lower end of its target for 75 planes. The manufacturer expects about 870 commercial plane deliveries this year, which is an increase from the 793 deliveries in 2025, but below FactSet views for 929 deliveries.

Faury said that the shortfall will “mainly impact 2026 or maybe to some extent 2027.” He noted that the shortage came from Pratt & Whitney sending engines to airlines to support existing fleets, rather than fulfill new orders.

“We’re in dispute with Pratt & Whitney on this,” Faury said. “We want to enforce our contractual rights, but this will obviously take time.”

Airbus reported earnings of 75 cents per share adjusted, ahead of FactSet views for 73 cents per share. Revenue increased 18% to $30.72 billion, missing estimates for $31.8 billion.

Northrop Grumman To Test New ICBM System

The plans for a test launch of Northrop Grumman’s Sentinel system come after extended delays. The program was so troubled that the government had to issue a formal review of the project, which is scheduled to be completed this year.

Sentinel ICBMs are meant to carry nuclear warheads. They serve as the land-based launch sites of the U.S. nuclear arsenal. Other launch methods for nuclear weapons include sea-based launches from nuclear submarines and bombs dropped by bomber planes.

The Air Force will decide by the end of the year whether to move forward with developing a prototype of the new missile systems — known as a Milestone B approval. Such a timeline would likely mean the new version of the program would be ready in the early 2030s, according to the Air Force. Northrop Grumman and the federal government also announced the defense contractor will break ground on a prototype of a launch silo, set to be used for the Sentinel program, in Utah.

Boeing Stock Eyes Buy Point, Northrop Climbs

BA stock declined about 2% Thursday, adding to its 2% skid Wednesday.

Boeing shares broke out of a five-month base pattern in mid-January, according to MarketSurge. Since then, shares pulled back below the 242.69 buy point, and now trade narrowly below that level.

NOC shares rose 1.7%, adding to its 3.4% gain Wednesday and extend further from a buy zone.

Northrop Grumman stock broke out last month a few days after President Donald Trump said he wanted to increase defense spending by 50%. Since breaking out, shares are now above the 5% buy range. They are now in a small consolidation, according to MarketSurge. The stock is up about 25% year to date.

Airbus shares tumbled 6.7% Thursday, to drop below its 50-day line and test its 200-day moving average. Airbus, which trades in American Depositary Receipts under the ticker EADSY, is down 5.7% this year.

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