TLDR
- Boeing (BA) stock fell about 9% to near $171 after management said 737 MAX deliveries would miss the 500-jet target for 2026.
- The company posted a Q3 loss of 34 cents a share on $24.1 billion in sales, worse than the 25 cent loss analysts expected.
- Free cash flow came in at $464 million, beating forecasts of $238 million, and guidance was kept.
- The commercial airplane unit lost $697 million, while the defense unit earned $492 million, up from $114 million a year ago.
- The Navy’s F/A-XX fighter win and FAA approval of the last two MAX versions did not offset the delivery miss.
Boeing (BA) stock dropped about 9% to roughly $171 on Tuesday, down nearly $17. The drop came after management said 737 MAX deliveries would fall short of targets this year.
The stock actually rose at first. It slid after the earnings call began at 10:30 a.m. Eastern, while the S&P 500 stayed higher.
Boeing reported a third-quarter loss of 34 cents a share on $24.1 billion in sales. Wall Street had expected a loss of 25 cents on $23.4 billion. Investing.com reported a slightly different per-share figure, a loss of 26 cents.
Free cash flow was a bright spot at $464 million. Analysts had looked for $238 million, and Boeing kept its full-year guidance.
“Given the fireworks associated with Boeing earnings in the past, this set of results is pretty boring,” wrote Vertical Research Partners analyst Rob Stallard. “And in this case, boring is good.”
The MAX Problem
The trouble is the 737 MAX. Boeing is unlikely to hit its goal of 500 deliveries this year. Overall, it was expected to deliver about 660 jets in 2026, up from 600 in 2025.
Boeing delivered 161 commercial jets in the quarter, compared with 160 a year ago. Through nine months, it delivered 363 MAX jets, its fastest pace ever. Still, that was not enough for the year-end target.
The commercial airplane division lost $697 million. That is better than the $5.4 billion loss a year ago but worse than the $360.8 million loss analysts expected.
Engine delivery problems slowed plans to lift output. Boeing is still working to reach 47 MAX jets a month. CEO Kelly Ortberg said in September that engine issues kept 787 output at eight a month instead of ten.
The division should turn a profit once quarterly deliveries near 200. Boeing has not posted a commercial airplane operating profit since 2018, when it delivered 806 jets.
Defense and Other Wins
Defense had a strong quarter. Revenue rose 15% to $7.94 billion, beating forecasts of $7.41 billion. Operating profit hit $492 million after four straight years of losses.
Boeing also beat the Navy’s sixth-generation fighter competition. William Blair analyst Louie DiPalma called the win a sign of improvement in defense.
The FAA certified the MAX 10 in October. BofA analyst Ron Epstein said the “MAX family is complete” and that it should help steady production.
The stock had lagged before the report. It was down about 13% since the end of June, roughly 15 points behind the S&P 500. That was despite 85% of analysts rating it Buy, up from 77% in June.
Oil is another factor. Benchmark prices are up about $43 a barrel, or nearly 60%, since late June. Airlines buy the jets, and high fuel costs hurt their earnings.
Boeing ended the quarter with $25.2 billion in net debt. Revenue rose 4% to $24.19 billion by Investing.com’s count. The stock was trading near $171 late Tuesday morning.
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