Boeing's latest financial disclosure disappointed the market, and its share price fell sharply in response.
Boeing CEO Kelly Ortberg said on Tuesday that the company's goal of reaching a monthly production rate of 47 aircraft for its 737 series would be postponed to early 2027, a timeline significantly later than previously expected.
At the same time, the company's projected free cash flow growth came in far below Wall Street consensus: about $3 billion next year and about $6 billion in 2028, compared with analyst forecasts of $5.6 billion and $9.6 billion respectively, according to LSEG data.
As of publication, Boeing (BA) shares had tumbled 10%, hitting their lowest level since April 2025.
Production target delayed again, delivery pace under pressure
In an interview with CNBC, Ortberg said the target of building 47 737s per month had originally been planned for this summer and has now been pushed to "early next year," which also means the company's annual delivery goal of 500 aircraft this year cannot be met.
Boeing disclosed in September that insufficient wing production speed was a key bottleneck constraining the production ramp-up. The 737 narrowbody family is the core source of Boeing's cash flow, and the production delay has a direct impact on the company's overall financial recovery.
Boeing is also facing ongoing challenges in production of the 787 program and the 777 freighter. In response, Ortberg said: "We're doing the ramp the right way." He also stressed that although there is external pressure to accelerate 737 output, "we're going to be rational and disciplined, and the upside is there."
Quarterly results miss expectations, commercial aviation losses narrow
Boeing posted an adjusted loss per share of 34 cents in the third quarter, wider than the 21-cent loss expected by the market, according to LSEG data.
Revenue in the commercial aviation division slipped slightly to $10.7 billion, with an operating loss of $697 million and an operating margin contraction of 6.5%. That was still a marked improvement from the severe 48.3% contraction in the same period a year earlier.
The company attributed the performance to lower profitability of the aircraft models delivered and higher production costs, including supply chain costs.
Notably, Boeing won U.S. regulatory certification for the 737 MAX 7 during the quarter and secured certification for the larger MAX 10 in October, while also winning the U.S. Navy's sixth-generation F/A-XX fighter contract.
Defense and services units shine, providing support to results
Compared with the pressure on the commercial aviation division, Boeing's defense and space unit showed clear improvement.
Thanks to higher deliveries, improved operating efficiency and a $252 million gain from the sale of a subsidiary, the unit posted quarterly operating profit of nearly $500 million, with operating margin rising to 6.2% from 1.7% a year earlier.
Boeing Global Services reported quarterly operating profit of $1 billion and an operating margin of 18.3%, continuing to provide a stable source of earnings for the group as a whole.
Debt pressure eases marginally, but recovery remains a long road
Financial data showed Boeing's net debt stood at about $25.2 billion at the end of the third quarter, down slightly from $25.9 billion in the previous quarter and below $30.4 billion a year earlier, indicating some easing of debt pressure.
In a memo to employees after the results, Ortberg said: "Expectations are rising, and rightly so. We have a stronger foundation than a year ago, but there is still a great deal of work to do in working through the backlog, strengthening our culture and improving day-to-day operations."
High oil prices continue to drive airlines' demand for more fuel-efficient aircraft, but Ortberg also noted this is "something we need to keep watching." For Boeing, which still carries heavy debt and has yet to fully repair its reputation, the pace of the production ramp-up and the speed of cash flow recovery will be the core variables investors watch most closely in the future.
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