Boeing stock tumbles as investors react to third-quarter losses

Boeing shares had their worst day in more than 18 months Tuesday after the company reported a bigger-than-expected third-quarter loss and said it would miss its 737 production and delivery targets this year.

The stock fell 10.7% on Tuesday, closing at $168.07. That was the stock’s lowest level since April 2025, according to Reuters.

Boeing lost $116 million, or 26 cents a share, in the three months ending Sept. 30, according to the company. Excluding certain costs, Boeing reported what it calls a core loss of 34 cents a share. Analysts surveyed by LSEG had expected a loss of 21 cents, according to CNBC. Revenue rose 4% from a year earlier to $24.19 billion.

737 production is slower than promised

The bigger worry for investors was the timeline. CEO Kelly Ortberg said Boeing will miss its 737 production and delivery targets for 2026. Boeing said the 737 program is still working toward a steady rate of 47 planes a month, and Reuters reported that the company now expects to get there in early 2027.

On the earnings call, Ortberg said Boeing is aiming for 52 planes a month in the second half of 2027, according to CNBC. He has blamed the slowdown on the pace of wing production.

“I know everybody wants us to go faster, but we’re going to do it right,” Ortberg told CNBC.

Production matters for Boeing’s recovery because airlines pay most of a plane’s price when it’s delivered, according to CNBC. Boeing delivered 161 commercial airplanes in the quarter, one more than a year earlier, according to the company.

There was some good news on the 737. The FAA certified the 737-7 during the quarter and the 737-10 in October.

Commercial airplane division still losing money

Boeing Commercial Airplanes saw its revenue fall 3% to $10.7 billion. Boeing says it lost $697 million.

Boeing blamed the loss on delivering a less profitable mix of planes, higher expected costs tied to future production rate changes, and higher supply chain costs.

The division’s order backlog reached a record $612 billion, according to the company.

Defense and services did better

Boeing’s defense unit grew its revenue 15% to $7.94 billion and earned $492 million, according to the company. Boeing said the results reflected a $252 million gain from selling its HRL Laboratories subsidiary, along with better performance on its programs. The Navy also selected Boeing during the quarter to design and build the F/A-XX, its next-generation fighter jet.

Boeing Global Services, the company’s parts and maintenance business, earned $1.02 billion on $5.6 billion in revenue, according to Boeing.

Across all businesses, Boeing’s backlog grew to a record $745 billion, including more than 6,300 commercial airplanes.

Cash is coming in more slowly

Boeing generated about $464 million in free cash flow during the quarter and ended it with $20.7 billion in cash and investments, according to the company. Reuters reported that Boeing has burned $359 million so far this year but still expects to finish 2026 with $2 billion in free cash flow.

“Expectations are rising, and they should,” Ortberg told employees in a memo. “We have a stronger foundation than a year ago, but we also have more work to do to deliver on our backlog, strengthen our culture, and improve how we work every day.”

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