Boeing narrows third-quarter losses and boosts cash flow, but supply chain challenges push major production increases into late 2027.
Boeing (BA) shares fell approximately 9% Tuesday after the aerospace giant announced that significant production increases for its 737 Max aircraft would be delayed until the second half of 2027, despite reporting improving third-quarter financial results.
CEO Kelly Ortberg said Boeing expects to increase monthly 737 Max production from approximately 47 aircraft to 52 by late 2027, citing slower-than-anticipated wing production.
“We’re going to do it right,” Ortberg emphasized, reinforcing the company’s commitment to safety, quality, and operational efficiency.
Boeing reported a third-quarter net loss of $116 million, significantly improving from a $5.34 billion loss a year earlier. Revenue increased 4% to $24.19 billion, exceeding Wall Street expectations of $23.84 billion.
Free cash flow nearly doubled to $464 million, while defense revenue surged 15% to $7.94 billion. However, commercial aircraft revenue declined 3% to $10.72 billion amid rising production and supply chain costs.
Despite manufacturing challenges, Boeing secured important regulatory milestones, including FAA approvals for the 737 Max 7 and Max 10.
While improving financial performance signals progress in Boeing’s turnaround, production constraints remain a significant obstacle to accelerating deliveries, strengthening profitability, and restoring investor confidence.
