Boeing falls 9.2% as 737 production stabilisation is delayed and annual delivery target slips
Key Facts
Boeing shares fell in trading on October 27 after third-quarter results showed that stabilising 737 production at 47 aircraft a month had been pushed back to 2027, while the company will miss its target of delivering 500 aircraft this year. Chief Financial Officer Jay Malave said the delay in reaching the targeted production rate would reduce output and prevent the company from meeting its annual delivery goal. The developments came as the company posted higher revenue and a smaller net loss than a year earlier. The stock fell 9.2% during the session, according to the headline in an EL7 report covering the market that day. The production delay puts pressure on Boeing's ability to convert its existing orders into aircraft deliveries in the near term.
Boeing said its 737 program continues to progress toward stabilising production at 47 aircraft a month, but that level is now expected in 2027 after company officials had hoped to reach it in the summer of 2026. The company did not announce a production-rate cut; the change is a delay in stabilising at the targeted rate. Malave said the delay means Boeing will miss its goal of delivering 500 aircraft in 2026. The gap between the previous and new timelines shows that the immediate challenge is the pace and sustainability of production increases, rather than an announced reduction in the target rate. Wing production remains a key constraint on higher output despite improving production, and the company says it needs to demonstrate sustainable performance before increasing the rate.
Boeing's third-quarter revenue reached $24.188 billion, up 4% from $23.270 billion in the same quarter of 2025. Net loss narrowed to $116 million from $5.339 billion a year earlier, according to the company's results. Operating cash flow also rose to $1.496 billion from $1.123 billion, an increase of 33% year over year. But those overall figures came alongside a delay in stabilising 737 production, limiting what the financial improvement says about delivery trends for the year. The results thus showed improvements in revenue, net loss and operating cash flow, alongside ongoing operating constraints that delayed the production target.
Boeing's commercial airplanes division posted third-quarter revenue of $10.7 billion, with a negative operating margin of 6.5%. The company attributed the performance to a less favourable delivery mix, higher expected costs related to future production-rate changes, and increased estimated costs in the supply chain. Boeing delivered 161 commercial aircraft during the quarter, compared with 160 in the same period of 2025. Deliveries included 124 737s, compared with 121 a year earlier. The comparison shows a modest increase in total deliveries and 737 deliveries, but the company also linked the division's performance to its delivery mix and costs, as well as the need to adjust future production plans.
On the demand side, Boeing's backlog reached a record $745 billion on September 30 and included more than 6,300 commercial aircraft. The orders represent a substantial volume of expected work, while converting them into deliveries will depend on the company's ability to address production and supply-chain constraints. Boeing said its financial plan targets raising 737 production to 52 aircraft a month in the second half of 2027. Reaching that level will require stabilising wing and fuselage production, as well as approval of the North Line. The company has therefore set a later target for increasing the rate, while stable wing production remains a key condition for progress toward it.