Abstract:
Boeing does not expect to significantly increase production of its best-selling 737 Max aircraft until the second half of 2027 as it grapples with slower-than-expected wing production. CEO Kelly Ortberg said on the company's quarterly earnings call on Tuesday that Boeing is targeting production of 52 planes per month in the second half of 2027. The company has been producing 737 Max aircraft at a rate of about 47 per month.
Ortberg told investors last month that it would take "a little bit longer" than expected to stabilize production due to the speed of wing production.
Boeing shares fell about 9% during the conference call.
"I know everyone wants us to be faster, but we have to do it right," Ortberg said Tuesday.
Ortberg on Tuesday reiterated the company's priority for stabilizing production.
"Going forward, expectations are rising and should rise," Ortberg said in a memo to employees on Tuesday. "This means improving performance in our daily work through lean, productivity and efficiency improvements, while maintaining high levels of safety and quality."
Plane production and delivery are critical to Boeing's recovery because the bulk of a plane's price is paid by customers when they take delivery.
Third quarter results
The company also reported on Tuesday that third-quarter losses narrowed due to a boost from the defense sector.
For the three months ended September 30, Boeing reported a net loss of $116 million, or 26 cents per share, compared with a loss of $5.34 billion, or $7.14 per share, in the same period last year. Adjusted for one-time items, the company lost 34 cents per share. A year ago, Boeing took a nearly $5 billion charge on its long-delayed 777X aircraft program.
Revenue increased 4% year-on-year to US$24.19 billion. Free cash flow increased to $464 million from $238 million in the third quarter of 2025.
The company's defense division's third-quarter revenue increased 15% year-on-year to US$7.94 billion.
Loss per share: adjusted loss of 34 cents, expected loss of 21 cents
Revenue: US$24.19 billion, expected US$23.84 billion
Boeing delivered 161 commercial aircraft in the third quarter, one more than the same period last year.
Revenue in the all-important commercial aircraft business fell 3% to $10.72 billion. The segment's operating margin was negative 6.5%, which Boeing cited as a result of "a less favorable delivery mix, expected higher costs related to future production adjustments and higher expected supply chain costs."
Ortberg told employees in the memo that the manufacturer "has more work to do."
Certification progress
The manufacturer has had some recent wins. The U.S. Navy has chosen Boeing to develop its next-generation fighter jet.
The Federal Aviation Administration last week approved the 737 Max 10, the largest model in the Max series. This follows the approval of the 737 Max 7 in August, marking the final certification of the aircraft series.
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