Boeing delays reaching 47 737s a month to early 2027
Key Facts
Boeing postponed its forecast for reaching a production rate of 47 737s a month until early 2027, after executives said in May they would reach that level during the summer. Chief Financial Officer Jay Malave said the company would not meet its target of delivering 500 737s in 2026. The delay combines a manufacturing pace that has yet to stabilize with annual deliveries set to remain below the stated target, Reuters reported. In afternoon trading on October 27, Boeing shares fell 9.6% to $170.23. Reuters said that would be the stock's worst daily performance since April 3, 2025.
Company figures show that 737 deliveries totaled 124 aircraft in the third quarter of 2026, compared with 121 in the same period of 2025. In the nine months ended September 30, Boeing delivered 367 aircraft of the type, compared with 330 in the same period a year earlier. Commercial airplane deliveries totaled 161 in the third quarter, compared with 160 a year earlier. Total commercial deliveries in the nine months rose to 475 aircraft from 440. The figures reflect year-over-year growth in deliveries, but come as the company expects to miss its annual target for 737s.
Reuters reported that wing production remains a key constraint on increasing 737 output. Even so, Boeing still plans to raise the rate to 52 aircraft a month in the second half of 2027, after reaching 47 aircraft a month early that year. CEO Kelly Ortberg said on September 16 that the company was working toward 47 aircraft a month, but had yet to stabilize at that rate, and that stabilizing production was taking longer than expected. In an interview published by Boeing, Ortberg stressed that the company would not accelerate the pace at the expense of disciplined execution, saying: "I know everyone wants us to move faster, but we will execute this the right way." He also said in the results report that the focus would remain on safety and quality while efforts to carry out production and delivery plans with discipline intensify.
Boeing attributed the commercial airplane division's weaker performance to a less favorable delivery mix, higher expected costs tied to future production-rate adjustments, and increased supply-chain costs. Operating cash flow was $1.5 billion in the third quarter, while free cash flow reached $464 million. But free cash flow posted a deficit of $359 million in the nine months ended September 30. Reuters said the company expects to generate $3 billion in cash flow in 2027, below the Wall Street consensus forecast of $5.5 billion. Reuters attributed the gap to lower deliveries and higher capital investment, while Boeing maintained its target of generating $2 billion by the end of 2026 despite negative free cash flow recorded since the start of the year.
The backlog remained at a record $745 billion at the end of the third quarter and included more than 6,300 commercial aircraft, according to Boeing's report. That puts the scale of outstanding orders against the challenge of converting them into production and deliveries on the company's targeted schedule. On new models, Ortberg said the 737–7 and 737–10 would begin deliveries in 2027 after completing certification. The expected start of deliveries does not remove the ongoing constraint on wing production, which Reuters identified as a key obstacle to the pace of 737 manufacturing. Further out, Reuters said Boeing still targets $10 billion in free cash flow in 2029, a year later than investors had expected.