Boeing Co. kicked off 2026 with a bang, surging nearly 5% on Friday after the Pentagon awarded the aerospace giant a $2.73 billion firm-fixed-price contract for Apache helicopter post-production support services. The rally made Boeing one of the biggest contributors to the Dow Jones Industrial Average's 0.66% gain on the first trading day of the year.
The Contract Details
The Department of Defense announced the multi-year Apache support contract on New Year's Eve, with work locations and funding to be determined with each order. The contract has an estimated completion date of December 31, 2030, providing Boeing with a substantial revenue stream for its defense division over the next five years.
The Apache helicopter program has been a cornerstone of Boeing's defense portfolio for decades. The AH-64 Apache is the primary attack helicopter of the United States Army and has been exported to numerous allied nations, making post-production support a critical and profitable business segment.
Market Impact and Technical Analysis
Boeing shares closed at $227.27, up 4.7% on the session, with intraday trading reaching as high as $227.77. The move was significant not just for Boeing shareholders but for the broader market, as Boeing's substantial weight in the price-weighted Dow Jones Industrial Average meant its gains helped offset weakness elsewhere.
"The Boeing move matters because it's one of the Dow's most influential names, and a sharp swing in the stock can meaningfully shift the index's daily point move."
— Market analysts
Technical analysts at JPMorgan and Deutsche Bank have maintained bullish outlooks on the stock, with some projections suggesting Boeing could reach $245 by year-end. The contract win provides fundamental support for these optimistic forecasts.
Turning the Corner on a Troubled Year
The contract comes at a crucial time for Boeing, which spent much of 2025 dealing with production challenges and regulatory scrutiny. Despite a year marked by delays and quality concerns, Boeing's stock managed to outpace the broader market, buoyed by a deep order backlog and expectations of an eventual turnaround.
Boeing's backlog now stands at 5,900 planes worth over $535 billion, and the company has announced plans to increase 737 narrow-body production to 47 planes per month by mid-2026. Management has designated 2025 as a year of stability and 2026 as the year for growth.
Path to Profitability
Wall Street analysts expect Boeing to return to profitability this year. After posting a loss of approximately $20.38 per share in 2025, consensus estimates project earnings of $2.34 per share in 2026—a dramatic swing that reflects expectations of improved production efficiency and delivery rates.
Defense Spending Tailwinds
The Apache contract highlights the enduring strength of Boeing's defense business, which has served as a stabilizing force while the commercial aviation division works through its challenges. With geopolitical tensions remaining elevated globally, defense spending continues to provide a reliable revenue floor.
The broader industrial sector also participated in Friday's risk-on rally, with Caterpillar rising 4.5% alongside Boeing's gains. The combination of defense contract wins and renewed investor appetite for cyclical stocks suggests that industrial names could be among the early winners in 2026.
What This Means for Investors
For investors considering Boeing, the $2.7 billion Apache contract serves as a reminder that the company's diversified business model—spanning commercial aviation, defense, and space—provides multiple avenues for recovery and growth. While challenges remain in the commercial segment, the defense portfolio continues to deliver substantial, predictable revenue.
As Boeing heads into 2026, the combination of a massive order backlog, improving production metrics, and continued defense wins positions the company for what could be a pivotal year in its turnaround story.
