Production outlook and the wing bottleneck
Boeing told investors it does not see a meaningful acceleration in 737 Max production before the second half of 2027, when it is aiming for 52 aircraft a month. The line is currently running at about 47, and CEO Kelly Ortberg tied the slower ramp to wing output taking longer than hoped, something he had signaled last month.
He reinforced the stance on the call and in a CNBC interview, saying, "I know everybody wants us to go faster but we're going to do it right." Shares fell roughly 9% while the call was underway. In a note to employees, he added, "Looking ahead, expectations are rising, and they should," calling for lean, productivity and efficiency gains while holding "high levels of safety and quality." He also told staff there is "more work to do."
The quarter in focus
Over the period ending Sept. 30, Boeing posted a net loss of $116 million - 26 cents per share - while the prior year showed losses of $5.34 billion and $7.14 per share. Excluding one-offs, the company posted a 34 cent loss per share. A year ago included a nearly $5 billion charge tied to the long-delayed 777X program.
Revenue increased 4% year over year to $24.19 billion, topping the LSEG consensus of $23.84 billion. Adjusted loss per share was 34 cents versus an expected 21 cent loss. Free cash flow came in at $464 million, up from $238 million in Q3 2025.
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Deliveries, segments and what moved
In the quarter, Boeing handed over 161 commercial airplanes, one more than a year earlier. Commercial Airplanes revenue fell 3% to $10.72 billion, and the unit posted a negative operating margin of 6.5%, which Boeing attributed to an unfavorable delivery mix, elevated projected costs related to future rate changes, and rising supply chain expenses.
Defense, Space and Security revenue rose 15% to $7.94 billion, helping narrow the overall loss. Production and deliveries remain central to the recovery because most of an aircraft's price is paid at delivery.
Certifications and defense wins
Regulatory milestones continued. The Federal Aviation Administration cleared the 737 Max 10 last week, following the 737 Max 7 approval in August, completing certifications for the Max family. On the military side, the U.S. Navy chose Boeing to work on its next-generation fighter jet.
Why it matters for your portfolio
The commercial turnaround still hinges on output and deliveries, and management is anchoring a higher 737 Max rate in the second half of 2027 while it works through wing constraints. Meanwhile, defense strength is cushioning results, and fresh certifications remove a key overhang on the Max line. The bottom line: more cash should track steadier production.
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