Anabelle Colaco
31 Oct 2026

SEATTLE, Washington: Boeing has pushed a key 737 production target into early 2027 and expects to miss its aircraft delivery goal this year, dealing a setback to the U.S. planemaker's recovery and sending its shares down more than nine percent.

CEO Kelly Ortberg said that Boeing will not reach its target of producing 47 737 jets a month until early next year. The company had planned to reach that rate last summer.

As a result, Boeing will not meet its target of delivering 500 aircraft this year.

The company also forecast significantly slower free cash flow growth than Wall Street had expected. Boeing expects free cash flow of US$3 billion in 2027 and $6 billion in 2028, compared with analysts' consensus estimates of $5.6 billion and $9.6 billion, respectively, according to LSEG data.

Boeing shares fell 9.5 percent in early trading, reaching their lowest level since April 2025.

The company has struggled to ramp up production quickly enough as it recovers from years of production and quality problems that damaged its reputation, drained cash, and left it with a heavy debt load.

In September, Ortberg said Boeing had been unable to produce wings quickly enough. Deliveries of its popular single-aisle 737 are a major contributor to the company's cash flow.

"We are ramping up aircraft, and we're doing that in the right way," Ortberg said.

Before Ortberg joined Boeing in 2024, the company had struggled for years with production quality problems that were attributed to increasing output too quickly at the expense of quality.

The company faces pressure to increase 737 output faster, "but we're going to be smart about this, stay disciplined, and the outlook is there," Ortberg said.

Boeing also continues to face production challenges with its 787 program and 777 freighters.

During the quarter, Boeing secured U.S. regulatory certification for the 737 MAX 7, won the U.S. Navy's sixth-generation F/A-XX fighter contract, and generated free cash flow for another quarter. Certification of the larger MAX 10 followed in October.

"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, strengthen our culture, and improve how we work every day," Ortberg said in a memo to employees after the results.

Boeing reported an adjusted loss of 34 cents per share for the quarter through September, compared with analysts' expectation of 21 cents, according to LSEG data.

Revenue at Boeing Commercial Airplanes edged lower to $10.7 billion. The division posted a $697 million operating loss, while its operating margin contracted 6.5 percent, down from 48.3 percent a year earlier.

Boeing attributed the performance to a less profitable mix of aircraft deliveries and higher production costs, including supply-chain expenses.

Its defense division posted nearly $500 million in quarterly earnings, helped by higher deliveries, improved operations, and a $252 million subsidiary sale. Boeing Global Services earned $1 billion.

The company ended the quarter with $25.2 billion in net debt, down from $25.9 billion three months earlier and $30.4 billion a year ago.