Boeing Posts Adjusted Loss of $0.34 a Share, Delays 47-Jet Monthly Target
Key Facts
Boeing reported revenue of $24.188 billion in the third quarter of 2026, up 4% from the same period a year earlier, but posted a core adjusted loss of $0.34 a share and an accounting-standard diluted loss of $0.26. According to Reuters, the adjusted loss was larger than analysts had expected, while revenue fell short of the estimate cited by Zacks. CEO Kelly Ortberg acknowledged on October 27 that the company would not reach its target of producing 47 737s a month before early 2027. He said the delay meant Boeing would miss its 2026 delivery target, without specifying the size of the shortfall in the information available here. The focus has thus shifted from revenue and order growth to the company's ability to ramp up production and turn its backlog into delivered aircraft.
Commercial Airplanes remained the main pressure on results, with revenue down 3% year over year to $10.720 billion, an operating loss of $697 million and a negative margin of 6.5%. Boeing attributed the performance to a less favorable delivery mix, higher expected costs tied to future production-rate changes and higher estimates for supply-chain costs. Commercial airplane deliveries totaled 161 in the quarter, compared with 160 a year earlier, while the segment booked 300 net new orders. The figures show orders expanding alongside continued operating losses, while improving results will require addressing costs and constraints that are slowing production. Ortberg said the company remained focused on safety and quality and had work to do to improve execution and meet its commitments.
The significance of the delayed production target becomes clear when compared with Ortberg's update in September, when he said the company was aiming to stabilize 737 production at 47 aircraft a month but had not yet reached that rate. In the October 27 update, he put the target date in early 2027, pushing back the timeline investors had been watching. For other programs, Boeing said the 737-7 received an amended type certificate from the Federal Aviation Administration during the quarter, and the 737-10 received certification in October. It added that the first 777-9 delivery remained targeted for 2027. These dates remain part of the upcoming delivery schedule, while stabilizing 737 production remains the challenge for which the company has now set a broader timeline.
Boeing's total order backlog rose to $745.431 billion on September 30, from $682.207 billion at the end of 2025, including $611.833 billion for Commercial Airplanes. On liquidity, the company recorded operating cash flow of $1.496 billion and free cash flow of $464 million in the third quarter, compared with $1.123 billion and $238 million, respectively, a year earlier. Boeing said working-capital timing contributed to operating cash flow, partly offset by $0.7 billion in Justice Department settlement payments. In the first nine months of 2026, operating cash flow was $2.681 billion, compared with a cash outflow of $266 million in the same period of 2025, while free cash flow remained negative at $359 million, versus negative $2.252 billion. Cash and marketable securities totaled $20.7 billion at quarter-end, while consolidated debt stood at $45.9 billion.
The company also forecast cash flow of $3 billion in 2027 and $6 billion in 2028, levels below analyst consensus, according to Reuters. In morning trading on October 27, Boeing shares fell 1.8%, according to Investing.com. In other segments, Defense, Space & Security revenue rose 15% to $7.935 billion, with operating earnings of $492 million and a margin of 6.2%, including a $252 million gain from the sale of HRL Laboratories. The company also said the U.S. Navy's selection of Boeing to design, build and deliver the F/A-XX fighter was not included in the order backlog pending completion of the selection and evaluation review. The results therefore combine improved revenue and quarterly cash flow on one hand with production delays and cash forecasts below analyst estimates on the other.