Boeing does not expect to significantly ramp up 737 Max output until the second half of 2027, and its stock fell about 9% during the earnings call. The company narrowed its third-quarter loss on defense growth, but the adjusted loss per share came in wider than analysts expected.
Boeing targets 52 737 Max planes a month in the second half of 2027, CEO Kelly Ortberg said on Tuesday's quarterly earnings call. The company grapples with a slower-than-expected pace of wing production. Boeing has been manufacturing about 47 of the planes a month.
The stock was down about 9% during the call. Ortberg told CNBC's Phil LeBeau: "I know everybody wants us to go faster but we're going to do it right,"
Defense sales narrow the quarterly loss
For the three months ended Sept. 30, Boeing reported a net loss of $116 million, or 26 cents a share. A year earlier, the loss was $5.34 billion, or $7.14 per share. Adjusted for one-time items, the loss per share was 34 cents, against a loss of 21 cents expected by analysts, according to LSEG consensus estimates.
Revenue climbed 4% to $24.19 billion, above the $23.84 billion expected. Defense unit revenue jumped 15% to $7.94 billion. Free cash flow rose to $464 million from $238 million in the third quarter of 2025.
Commercial unit posts a negative margin
Revenue in the commercial aircraft business fell 3% to $10.72 billion. The unit had a negative operating margin of 6.5%, which Boeing attributed to a less favorable delivery mix, higher projected costs tied to future production rate adjustments and higher estimated supply chain costs. Boeing delivered 161 commercial airplanes, one more than a year earlier.
The Federal Aviation Administration last week signed off on the 737 Max 10, following approval of the 737 Max 7 in August, which marked the final certifications for the aircraft line.
Source: CNBC
Trading involves risk.
Risk Disclaimer
