Boeing Plunges 9% as 737 MAX Rate-52 Goal Slips to Late 2027 and Core Loss Widens to $0.34 a Share

Boeing (BA) shares fell about 9% on Tuesday after the company reported a third-quarter core loss of $0.34 per share on revenue of $24.19 billion, and said on its earnings call that raising 737 MAX output is taking longer than planned. Shares traded near $170.90 at midday, down $17.41, or 9.25%, from Monday's close of about $188.31.

The 737 MAX problem

The main concern is production. Boeing is building the 737 MAX at 47 a month and told investors it will take into next year to fully stabilize at that rate. CEO Kelly Ortberg said it is "taking us longer than we had expected to demonstrate performance at Rate 47." The company's financial plan now assumes a move to 52 a month in the back half of 2027, and Boeing said it does not expect to reach its goal of 500 MAX deliveries this year. Boeing delivered 124 737s in the quarter, up from 121 a year ago.

Third-quarter results

The loss narrowed sharply from a year earlier, but the core loss per share was wider than analyst expectations, and revenue came in about 0.8% below the roughly $24.39 billion consensus by our calculation. Estimates for the loss varied from about $0.21 to $0.24 a share. Operating cash flow included about $0.7 billion of Justice Department settlement payments; by our calculation, free cash flow would have been about $1.2 billion without them.

Segment results

Commercial Airplanes remained in the red on delivery mix. Defense benefited from a $252 million gain on the sale of HRL Laboratories, which is included in its margin. Boeing delivered 161 commercial airplanes in the quarter, versus 160 a year ago, including 22 787s versus 24, and booked 300 net orders.

Backlog, cash and debt

Total backlog reached a record $745.4 billion at Sept. 30, up from $682.2 billion at the end of 2025, including more than 6,300 commercial airplanes. Defense backlog was about $101 billion. Cash and marketable securities were $20.7 billion, up from $20.0 billion at the end of the second quarter, and consolidated debt was $45.9 billion, unchanged from the prior quarter.

What management said about the road ahead

On the call, management said 787 production is stable at 8 a month, with a move to 10 expected to begin in 2026, and that 787 deliveries this year are likely near the low end of a 90 to 100 range. Boeing reiterated that the 777X remains on track for first delivery in 2027. It outlined free cash flow targets of about $2 billion in 2026, $3 billion in 2027, $6 billion in 2028 and $10 billion in 2029. The company also said it was selected for the Navy's F/A-XX fighter program. The release did not include formal financial guidance.

What it means for investors

The business is improving: operating profit is positive, cash flow is up and backlog is at a record. But the plan to lift cash flow depends on higher 737 output, and a later move to 52 a month pushes that timeline out. The key questions are how quickly Boeing proves a stable rate of 47, whether the 2027 cash flow target holds, and how the 777X certification schedule develops.

Sources: The Boeing Company, third-quarter 2026 results (Oct. 27). Consensus figures are analyst estimates, and call remarks are from the company's earnings call. This is informational, not a recommendation to buy or sell.