Boeing posts wider-than-expected quarterly loss as jet output lags

what happened

Boeing reported a third-quarter loss of 26 cents per share, while its adjusted loss came to 34 cents against analyst expectations of 21 cents, according to data compiled by LSEG, Reuters reported. Revenue at the commercial airplane unit slipped slightly to $10.7 billion, with an operating loss of $697 million. The company blamed less profitable jet deliveries and higher production costs, including in its supply chain. It has not reached its goal of lifting 737 output from 42 to 47 jets a month, a target it had hoped to hit over the summer, because it could not make wings fast enough.

The defense unit earned nearly $500 million with a 6.2% operating margin, and Boeing Global Services earned $1 billion with an 18.3% margin. Net debt fell to $25.2 billion from $25.9 billion in the previous quarter. The company also won the US Navy's F/A-XX fighter contract and received certification for the 737 MAX 7 and MAX 10 variants.

why it matters

For markets, the key issue is the gap between expectations and results in commercial aviation, while steady free cash flow and lower debt give support. Certification of the new 737 variants removes some regulatory risk, but production pace remains the main question. Shares edged higher in premarket trading.

market impact

Boeing shares: wider loss than forecast weighs, but defense and cash flow support

• ↔Boeing shares mixed — a loss larger than expected is offset by defense gains and steady cash flow

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