Boeing reported a narrowed loss for the third quarter, buoyed by a significant rise in defense sales. However, the aerospace giant's focus remains on overcoming production challenges for its best-selling 737 Max aircraft, with a substantial ramp-up now targeted for the second half of 2027.
CEO Kelly Ortberg announced Tuesday during the company's quarterly earnings call that Boeing is aiming to reach a production rate of 52 737 Max planes per month by the latter half of 2027. This revised timeline comes as the company faces a slower-than-anticipated pace in wing production, a critical component for the aircraft.
"I know everybody wants us to go faster but we're going to do it right," Ortberg stated in an interview with CNBC's Phil LeBeau. He emphasized that stabilizing production remains the company's top priority.
In a note to staff, Ortberg urged employees to elevate performance through lean practices, productivity, and efficiency improvements while maintaining high standards of safety and quality. Aircraft production and deliveries are crucial for Boeing's financial recovery, as a significant portion of an aircraft's price is realized upon customer delivery.
The company's third-quarter financial results showed a net loss of $116 million, or 26 cents per share, a marked improvement from the $5.34 billion loss, or $7.14 per share, recorded in the same period a year prior. This year-ago loss was heavily impacted by a nearly $5 billion charge related to the delayed 777X aircraft program.
Adjusting for one-time items, Boeing posted a loss of 34 cents per share, which was wider than the 21 cents expected by Wall Street analysts. However, revenue surpassed expectations, climbing 4% year-on-year to $24.19 billion, against an expected $23.84 billion.
Free cash flow saw a healthy increase, rising to $464 million from $238 million in the third quarter of 2025.
The defense unit was a strong performer, with revenue surging 15% year-on-year to $7.94 billion.
Conversely, revenue in the commercial aircraft business, Boeing's core segment, dipped 3% to $10.72 billion. This decline was attributed to a less favorable delivery mix, anticipated costs associated with future production rate adjustments, and higher estimated supply chain costs, leading to a negative operating margin of 6.5%.
Boeing delivered 161 commercial airplanes in the third quarter, a marginal increase of one aircraft compared to the previous year.
On the certification front, Boeing secured recent wins. The U.S. Navy selected the company to develop its next-generation fighter jet. Furthermore, the Federal Aviation Administration granted sign-off for the 737 Max 10, the largest variant in the Max family, following the approval of the 737 Max 7 in August. These approvals represent the final certifications for the 737 Max aircraft line.
