Boeing announced that it does not anticipate a substantial acceleration in 737 Max aircraft production until the second half of 2027, when the company aims to reach a manufacturing rate of 52 planes per month. Currently, Boeing is producing approximately 47 of the narrow-body jets monthly. CEO Kelly Ortberg attributed the delayed production increase to slower-than-anticipated progress in wing manufacturing, an issue he had flagged to investors the previous month.
Ortberg emphasized the company’s commitment to maintaining quality and safety standards alongside production improvements. In remarks to staff, he noted that rising expectations should drive operational enhancements through lean manufacturing, productivity gains, and efficiency measures. He also stated that Boeing has “more work to do” in its recovery efforts. The executive told media that while stakeholders desire faster production expansion, the company prioritizes executing the ramp-up correctly.
The company released third-quarter financial results showing narrowed losses compared to the prior year. Boeing reported a net loss of $116 million, significantly improved from a $5.34 billion loss in the comparable quarter the previous year. Revenue increased 4% year-over-year to $24.19 billion, while free cash flow rose to $464 million from $238 million. The defense unit contributed positively, with revenue climbing 15% to $7.94 billion.
Commercial aircraft operations faced headwinds, with revenue declining 3% to $10.72 billion and an operating margin of negative 6.5% due to unfavorable delivery composition, anticipated production adjustment costs, and elevated supply chain expenses. Boeing delivered 161 commercial aircraft during the quarter. Separately, the Federal Aviation Administration approved the 737 Max 10 variant last week, completing the certification process for the Max family following the Max 7 approval in August. Boeing’s stock declined 10% following the earnings announcement.
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