Abstract:
Boeing lowered its full-year aircraft delivery target. The company said it will take more time to increase production speed to a higher and sustainable level. The stock price fell in response, the largest drop in 18 months. Executives said on a conference call with analysts on Tuesday that Boeing would miss its full-year goal of producing 500 737 planes and that deliveries of the 787 Dreamliner would be closer to 90, at the low end of its previous guidance range. Boeing's stock price fell 10%, its biggest drop since April 2025.
After Boeing reported third-quarter results that were worse than investor expectations, CEO Kelly Ortberg said on a conference call, "I have said before that our progress is not always completely linear, but we continue to improve, and I believe we are on the right path."
Boeing's commercial aircraft division, the company's largest business by revenue, recorded a loss of US$697 million, while analysts surveyed by Bloomberg expected a loss of US$360.8 million. However, this loss is much smaller than the same period last year, when Boeing took a $4.9 billion charge due to the delayed 777-9 wide-body passenger aircraft project.
The profit growth of the defense and space business was partly due to a sale transaction involving a research laboratory jointly owned by Boeing for more than 20 years; in addition, the surge in global defense expenditures promoted an increase in business volume, which also supported the performance.
Boeing reiterated that it plans to start delivering the 777-9 wide-body passenger jet next year, which will be about six years later than originally planned.
Boeing's free cash flow was US$464 million, higher than analysts' expectations of US$325.1 million.
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