Key Highlights

  • BA shares are trading down 10.01% to $169.47, against a prior close of $188.31.
  • Q3 revenue was $24.2 billion, up 4%, while core loss per share was $0.34 versus the roughly $0.21 consensus loss.
  • Free cash flow was $464 million, and total backlog hit a record $745 billion.
  • The 52-per-month 737 target moves to the back half of 2027, with 47 per month stable into next year.
  • Boeing guided to about $2 billion of 2026 free cash flow, with 2027 lower than the prior framing implied.

Slower 737 Ramp Drives a Sharp Post-Earnings Drop

Boeing (NYSE:BA) shares are trading down 10.01% to $169.47 after the third-quarter report and earnings call pushed the stock sharply lower, as investors focused on a slower 737 MAX ramp. Shares are near a 52-week low on volume several times average, while the broader market and tech were firmer and the industrials ETF held steady.

Shares opened at $183.50 and traded between $168.42 and $187.86. The 52-week range runs from $168.42 to $254.35, so the stock sits at the low end.

Boeing, founded in 1916 and headquartered in Arlington, Virginia, designs, manufactures and services commercial jetliners, military aircraft, rotorcraft, weapons, missile defense, satellites and space and launch systems for customers in more than 150 countries. Operations are organized into Commercial Airplanes, Defense, Space and Security, and Global Services, supported by the Boeing Capital financing arm under CEO Kelly Ortberg.

Wider Core Loss Offsets a Revenue Beat

Revenue of $24.2 billion beat the $23.9 billion estimate and was up 4%, with an operating margin of 1.5%. Core loss per share of $0.34 was wider than the roughly $0.21 consensus loss.

Commercial Airplanes posted a $697 million operating loss, a negative 6.5% margin, on delivery mix, rate-change costs and supply chain expenses. Free cash flow of $464 million came after roughly $700 million of DOJ settlement payments.

Production Targets Slip Into 2027

The 737 is taking longer to stabilize at 47 per month, mainly because of wing back-shop issues, and full stability is now expected to extend into next year. The 52-per-month target moves to the back half of 2027, and 2026 deliveries will fall short of 500.

The 737-7 and 737-10 are FAA certified, with about 30 pre-built aircraft to deliver in 2027, and total 2027 Commercial Airplanes deliveries are expected to be up 10% or more. The 787 is stable at 8 per month, with 2026 deliveries at the low end of 90 to 100, and the 777X still targets its first delivery in 2027.

Free Cash Flow Targets Stretch Further Out

Management targets free cash flow of about $2 billion in 2026, $3 billion in 2027, $6 billion in 2028 and $10 billion in 2029, with 777X certification expected by mid-2027. The path is described as roughly a one-year shift to the right, and supplier shortages will keep disrupting production into 2027.

Backlog reached a record $745 billion, split between Commercial Airplanes at $612 billion, Defense at $101 billion and Global Services at $33 billion. Defense, Space and Security revenue rose 15% to $7.9 billion at a 6.2% margin, including a $252 million gain on the HRL sale, and Global Services revenue rose 4% to $5.6 billion at an 18.3% margin.

Cash and marketable securities were $20.7 billion against $45.9 billion of debt, with the $10 billion revolver undrawn. Boeing has a market cap of $133.94 billion.