Boeing shares fall about 10% as 737 production ramp slips into 2027

Production target slips into 2027

Boeing told investors that output of its 737 jet will not reach a rate of 47 aircraft a month until early 2027, later than the company had hoped. Most reports describe current output as 42 a month, with the plan to lift it to 47, while ANSA gave the current figure as about 47. Chief executive Kelly Ortberg said in a CNBC interview that the rate would be reached by early 2027 and that Boeing would still not match its 2018 production level in 2029. Boeing now expects to reach 52 aircraft a month in the second half of 2027, according to ANSA. The slower ramp reflects supply chain problems, especially wing production, which Ortberg had already acknowledged in September.

Cash flow and share price

Analysts had expected stronger cash generation than Boeing now projects. The company is targeting free cash flow of $3 billion for 2027 and $6 billion for 2028, against analyst estimates of $5.6 billion and $9.6 billion. Shares fell by about 10% in New York trading, with ANSA citing a drop of 9.89% to $169.69. Handelsblatt put the decline at more than nine per cent, to about $171, the lowest level in roughly a year and a half.

2027 Boeing target3

2027 analyst estimate5.6

2028 Boeing target6

2028 analyst estimate9.6

2027 Boeing target

3 USD billion

2027 analyst estimate

5.6 USD billion

2028 Boeing target

6 USD billion

2028 analyst estimate

9.6 USD billion

Data from the article text

Ortberg told investors that reaching the 47-a-month rate was taking longer than expected, and that the company still had work to do.

“It is taking longer than we had expected to demonstrate performance at rate 47. We're making progress, but we still have more work to do.”

Third-quarter results

Boeing reported a loss of $116 million for the third quarter, compared with a loss of $5.3 billion a year earlier, while revenue rose 4% to $24.2 billion. The adjusted loss was 34 cents per share, against the 21 cents analysts expected according to LSEG data. Commercial Airplanes posted revenue of $10.7 billion and an operating loss of $697 million, which Boeing linked to a less profitable delivery mix and higher production costs across its supply chain. A write-down on the 777X programme also weighed on the quarter, according to N-tv. The defence unit earned almost $500 million, helped by a $252 million sale of a subsidiary, while Boeing Global Services earned $1 billion.

Year-earlier quarter30.4

Prior quarter25.9

Quarter to September 202625.2

Year-earlier quarter

30.4 USD billion

Prior quarter

25.9 USD billion

Quarter to September 2026

25.2 USD billion

Data from the article text

Certifications and programme problems

US regulators certified the 737-7 and 737-10 variants, and RTE reported that the larger MAX 10 certification followed in October. The US Navy awarded Boeing the sixth-generation F/A-XX fighter contract during the quarter. Reuters had earlier reported production problems on the 787 and the 777 freighter. Boeing also generated free cash flow for another quarter, the company said. Ortberg wrote in a memo to employees that expectations were rising.

“Expectations are rising, and they should. We have a stronger foundation than a year ago, but we also have more work to do to deliver on our backlog.”