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Boeing Shares Sell Off on Slower-than-Expected 737 Production, Weaker Free Cash Flow Outlook
The planemaker now expects 737 output to reach 47 jets a month in early 2027 after wing bottlenecks slowed production.
- On Tuesday, Boeing CEO Kelly Ortberg announced the company will miss its 737 production and delivery targets for 2026, dealing a setback to its recovery. Shares tumbled nearly 10%, marking their worst day in over 18 months.
- Boeing continues to struggle with production challenges in its 787 program, while a supplier dispute has stalled wing production for 777 freighters and 767s. Currently, the company manufactures fuselages at a lower rate while using existing inventory.
- The company reported an adjusted loss of 34 cents per share for the quarter, missing the 21-cent expectation. Boeing pushed back its $10 billion annual free cash flow target to 2029, one year later than investors anticipated.
- Despite pressure to increase output, Ortberg stated, "We're going to be smart about this, stay disciplined." Jefferies analyst Sheila Kahyaoglu noted Boeing expects $3 billion next year, below the $5.5 billion consensus.
- Boeing plans to increase production to 52 jets a month in the second half of 2027, contingent on demonstrating sustained wing output performance. This ramp-up is critical to meeting the company's long-term financial recovery goals.
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17 Articles
Reformatorisch Dagblad+2 Reposted by 2 other sources
Boeing ended Tuesday with a significant loss on the New York stock exchange. The American aircraft manufacturer, which released quarterly results on Tuesday, lowered its delivery target for this year. Boeing said it needed more time to achieve higher production speeds.
·Apeldoorn, Netherlands (Kingdom of the)
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BOEING does not expect a major increase in production of its best-selling 737 MAX model before the second half of 2027 because wing production is progressing more slowly than the company had planned.
·Zagreb, Croatia
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Coverage Details
Total News Sources17
Leaning Left4Leaning Right4Center2Last UpdatedBias Distribution40% Left, 40% Right
Bias Distribution
- 40% of the sources lean Left, 40% of the sources lean Right
40% Right
L 40%
C 20%
R 40%
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