“The program continued to stabilize production at five per month in the quarter and we remain intent on demonstrating stability in the production system and supply chain prior to making the next rate increase to seven over the next few months.”

In context

“we continue to make adjustments as needed and manage supplier by supplier based on inventory levels. Over the past year our buffer inventory has grown to promote stability across our production system. As production stabilizes and rates increase over time, we plan to deliberately return buffer inventory to more normal levels. Today we have about 37 737-8 built prior to 2023 which is down 25 from year end and includes 25 airplanes for customers in China. We still expect to complete the rework on these airplanes and shut down the shadow factory by mid-year. On the 7 and 10 inventory levels were stable at approximately 35 airplanes and certification timelines are unchanged. On 787 we delivered 13 airplanes in the quarter generally in line with expectations outlined on our last earnings call. The program continued to stabilize production at five per month in the quarter and we remain intent on demonstrating stability in the production system and supply chain prior to making the next rate increase to seven over the next few months. Today we have about 20 airplanes and inventory built prior to 2023 that required rework down five from year end. Four of these 20 are for customers in China. Importantly, we finished the rework and shut down the shadow factory in the quarter and expect to deliver about half of the remaining airplanes this year. Finally on the 777X the program took another important step in its certification timeline as it received approval from the FAA to expand flight testing activities. We'll continue to follow the lead of the FAA as we progress through the certification process and still expect first delivery in 2026. 777X inventory was up approximately 800 million in the quarter and will continue to grow as we move towards entering service as we've previously shared. Moving on to the next page and BDS”