Boeing's Record Backlog and New Vietnam Orders Signal Demand Is Not the Problem

Shares of Boeing (NYSE: BA) have struggled to take off of late. The stock is down more than 4% so far this year, despite improving financials, a huge backlog, and growth in orders in Asia.

Any of those factors would normally be enough to send the aerospace and defense company's shares soaring, but there's one constant that continues to add turbulence to the stock: the company's quality-control issues.

Image source: Getty Images.

A litany of quality issues

Last month, Boeing disclosed a machining error that resulted in small scratches on electrical wiring on a group of undelivered 737 MAX jets. The concern was easily fixed, but it reminds investors of the company's recent quality-control issues that began with two crashes of 737 MAX jets between March 2019 and December 2020 that resulted in 346 deaths.

In 2024, after a door plug on an Alaska Airlines 737 MAX blew off, the Federal Aviation Administration (FAA) imposed a production cap on the company of 38 jets per month. Though the cap was increased this past October to 42 per month, the company's slow ramp-up to 47 or more jets per month has been a drag on the stock.

Debt concerns

At the end of 2025, the company's debt was $54.1 billion, up from $53.4 billion in the third quarter, thanks in part to the company's $4.7 billion purchase of its major fuselage supplier, Spirit AeroSystems, in December. In a higher-for-longer interest rate environment, the cost of servicing this debt remains a drag on the bottom line. While Boeing has improved on its net debt, it is still substantially higher than it was a decade ago.

Signs point to a turnaround in progress

Despite its issues, Boeing may be turning a corner, thanks to its making substantial inroads in Southeast Asia. On Feb. 18, it announced that Vietnamese luxury airline Sun PhuQuoc Airways had ordered up to 40 Boeing 787 Dreamliners. That news came the same day that Vietnam Airlines finalized an order for 50 737 MAX airplanes. On Feb. 3, Air Cambodia made its first Boeing order, requesting up to 20 737 MAX planes.

All of those orders add to a backlog of $682 billion at the end of the fourth quarter, as global airlines look to refresh aging fleets. Financially, the company is back to profitability for the first time in years. In 2025, it had revenue of $89.5 billion, up 34%, and earnings per share (EPS) of $2.48, compared to an EPS loss of $18.36 a year ago. The last time Boeing finished the year with positive EPS was 2018.

Boeing got two sets of good news on April 1. The Defense Department announced a partnership with the aerospace and defense giant to boost the capacity of seekers for the U.S. missile defense system. The company also got good news on the legal front as a U.S. Appeals Court upheld the dismissal of a major Department of Justice criminal case related to the 737 MAX crashes. This removal of a legal overhang provides management with a clearer path forward.

James Halley has positions in Boeing. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.