- Boeing shares dropped 9.6% after lowering production and delivery forecasts
- The company pushed back cash flow recovery, now expecting $3 billion in 2027
- 737 MAX production ramp-up delayed to early 2027 from summer 2026 target
Boeing shares plunged nearly 10% on Tuesday after the US planemaker lowered its production and delivery expectations, pushing back its cash flow recovery and raising fresh concerns about CEO Kelly Ortberg's turnaround strategy.
The stock fell 9.6% to $170.23 in afternoon trading, marking its steepest single-day decline since April 3, 2025. Investors reacted to Boeing's weaker-than-expected quarterly results and its revised free cash flow outlook.
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The company now expects to generate $3 billion in free cash flow in 2027, compared with analyst expectations of $5.5 billion, according to LSEG data. Boeing also warned that it would continue burning cash next year.
Boeing Delays 737 MAX Production Ramp-Up
Boeing expects to reach a production rate of 47 Boeing 737 aircraft per month in early 2027, missing its earlier target of achieving that pace in summer 2026. The company will consequently fall short of its goal to deliver 500 aircraft this year, Chief Financial Officer Jay Malave told analysts.
Wing production remains a major bottleneck, while supply-chain constraints and manufacturing challenges continue to weigh on output. Boeing is targeting a further increase to 52 aircraft per month in the second half of 2027.
The delays matter because 737 deliveries are a critical driver of Boeing's cash flow. Slower production can postpone deliveries and delay the cash generated from customer payments.
Also Read | Boeing Detects Software Issue With MAX Planes; May Impact Automated Flight Guidance System
Quarterly Loss Exceeds Estimates
Boeing reported an adjusted loss of 34 cents per share for the quarter ended September, wider than the 21-cent loss expected by analysts.
Its commercial airplanes division posted revenue of $10.7 billion and an operating loss of $697 million, with a negative operating margin of 6.5%. The company attributed the performance to less profitable aircraft deliveries and higher production costs.
Boeing ended the quarter with net debt of $25.2 billion, down from $25.9 billion in the previous quarter and $30.4 billion a year earlier. It generated $464 million in quarterly free cash flow but has burned through $359 million year-to-date.
Despite recent regulatory and defence contract wins, Boeing continues to face production challenges across its 787 and 777 programmes. The company expects the 777-9 to remain on track for regulatory certification by mid-2027.
High aircraft demand and limited competition from Airbus support Boeing's long-term outlook.
Also Read | Boeing Trails Rival Airbus As July Jet Deliveries Drop Sharply From June Peak
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