Boeing narrows third-quarter loss as defense sales rise, but focus remains on 737 Max production
Defense and services gains helped offset a deeper commercial jet loss as Boeing kept working to stabilize 737 MAX output at 47 a month, executives said.
- On Tuesday, Boeing reported a third-quarter adjusted loss of 34 cents per share as revenue rose 4% to $24.2 billion, though Boeing Commercial Airplanes posted a $697 million operating loss.
- Supply chain challenges and production delays in the commercial division overshadowed performance elsewhere. Engine delivery issues hindered production rate increases on the 737 MAX and 787 Dreamliner, limiting output growth.
- Boeing Global Services posted $1 billion in quarterly earnings with an 18.3% operating margin, while the defense arm achieved nearly $500 million in earnings, assisted by a $252 million subsidiary sale.
- Consolidated debt remained unchanged at $45.9 billion from the previous quarter. The company confirmed it has access to $10 billion in undrawn credit facilities to support ongoing operations.
- CEO Kelly Ortberg reiterated plans to deliver the 777-9 widebody next year and aims to stabilize 737 MAX output at 47 jets monthly. Ortberg stated the company has a "stronger foundation" but requires further work.
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American concentrate Boeing Co. lowered the estimate of aircraft supplies in 2026, leading to the worst drop in his stock shares over the past 18 months.
Boeing plans to significantly ramp up production of its most popular plane, the 737 Max, only in the second half of 2027 because wing production is moving more slowly than expected. The company currently produces about 47 planes per month and aims to reach 52 per month; the announcement sent its stock price down 9.6 percent.
The Economic Times
Boeing reports smaller loss as it aims for stable output growth
Boeing on Tuesday reported a smaller quarterly loss compared with the same period last year -- when plane certification delay costs heavily dented results -- as it ramps up output carefully. The aviation giant reported a third-quarter loss of $116 million, compared with a loss of $5.3 billion in the year-ago period mostly from delays to certification of the 777X, the latest generation in Boeing's long-range, wide-body commercial jet family.
Boeing posted a loss of hundreds of millions in its commercial aircraft division last quarter. This was due to less profitable aircraft deliveries and higher production costs, partly as a result of supply chain issues.
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