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Lee Samaha, The Motley Fool
Mon, May 25, 2026 astatine 6:35 AM CDT 4 min read
Boeing (NYSE: BA) is 1 of the much fascinating stocks connected the marketplace for investors who similar a semipermanent buy-and-hold approach. If you are 1 of them, it's important to recognize that the cardinal determinant of the company's aboriginal is its next-generation narrow-body aircraft, which is apt to motorboat successful astir a decade. There's a batch to unpack here, and overmuch of it mightiness astonishment you.
Boeing's adjacent craft
In a sense, the adjacent narrow-body is always the cardinal lawsuit successful the company's future. Widebodies are evidently hugely important (not slightest due to the fact that they thin to make higher-margin aftermarket/service revenue). Still, the currency travel rhythm of narrowbodies typically funds the adjacent procreation of aircraft.
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Unfortunately, the 737 MAX (first delivered successful 2017) hasn't delivered the benignant of currency travel Boeing's absorption and investors had hoped for. A operation of high-profile crashes, COVID-19 lockdowns, and prime power issues sent its escaped currency travel (FCF) successful 1 absorption and its indebtedness successful the other. Indeed, according to the Wall Street consensus, the institution volition lone commencement generating much than $10 cardinal successful yearly FCF successful 2028.
This takes america backmost to the archetypal semipermanent information -- namely, erstwhile Boeing CEO Dave Calhoun's assertion that a caller narrow-body volition outgo $50 cardinal to develop. How volition Boeing money it?
What motor volition the adjacent narrow-body use?
GE Aerospace (NYSE: GE) and its associated task with Safran, CFM International, predominate the craft motor market. CFM engines powerfulness the 737 MAX, and they're 1 of 2 options connected the Airbus (OTC: EADSY) A320neo family. As such, GE and Boeing bask a adjacent relationship, but the former's motor improvement could unit Boeing into a momentous and pivotal determination successful the adjacent decade.
As antecedently discussed, CFM's Revolutionary Innovation for Sustainable Engines (RISE) includes an unducted unfastened instrumentality motor (an illustration of which is shown below), which CFM believes could effect successful a 20% simplification successful substance pain compared to today's engines.
Airbus is actively investigating open-fan engines arsenic portion of the RISE program, and the European Union precocious launched an inaugural to enactment open-fan engines (Safran is starring the initiative, with Airbus arsenic 1 of galore partners). Boeing is believed to similar a ducted motor for its adjacent narrow-body.
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