Seattle, October 28 – Boeing shares sell off on slower-than-expected 737 production and a weaker free cash flow outlook after third-quarter results revealed commercial aircraft manufacturing hurdles. CEO Kelly Ortberg stated that Boeing will not reach a production rate of 47 737 jets per month until early 2027, missing the summer timeline and the 500-jet delivery goal this year.
Wing production constraints continue to limit the ramp-up of the popular single-aisle jetliner essential for generating significant cash flow at Boeing. Boeing stock declined nearly 10 percent to about $170, its largest single-day drop in more than 18 months amid concerns over delayed recovery in jetliner output.
The weaker free cash flow outlook projects $3 billion next year and $6 billion in 2028, falling short of consensus estimates of $5.6 billion and $9.6 billion. Boeing targets its $10 billion free cash flow goal in 2029 after generating $464 million in the recent quarter.
Boeing reported an adjusted loss of 34 cents per share compared with an expected 21 cents, while commercial airplanes posted revenue of $10.7 billion and an operating loss of $697 million. Stronger margins in defense and services units failed to offset the impact of slower 737 production on Boeing shares in aerospace.