Boeing (BA) 3Q 2025 earnings

Boeing’s It said Wednesday that jetliner deliveries had brought it back into cash-positive territory for the first time in nearly two years, but it took a $4.9 billion charge due to additional delays on its long-awaited 777X wide-body aircraft.

Boeing was on track to deliver the most planes this year since 2018, before two crashes grounded its best-selling jetliner, the Covid pandemic hit supply chains and a series of production crises caused years of losses for the US’s biggest exporter.

CEO Kelly Ortberg, an aerospace veteran who came out of retirement to lead Boeing in August 2024, has worked to stabilize the manufacturer’s sprawling supply chain and cash-generating production lines.

The 777X, an updated version of the 777 airliner, made its first flight nearly six years ago but has still not received regulatory approval. Boeing said it expects first delivery to occur in 2027, leading to non-cash pricing.

Boeing shares were down 2% in late morning trading but were still up more than 22% so far this year.

“While there is still more work to be done to advance our development programs, particularly our business development and certification programs, we are seeing positive signs across our business, and I am proud of how we have come together to turn our company around,” Ortberg said in a staff memo. he said.

Still, Boeing generated $238 million in free cash flow; This is the first time it has failed on that metric since late 2023.

Boeing lost $4.78 billion, or $7.14 per share, in the three months ended Sept. 30. This is better than the previous year’s loss of $5.76 billion. On an adjusted basis, the company reported a loss of $7.47 per share. Revenue rose 30% to $23.27 billion in the third quarter from $17.84 billion a year earlier, beating analysts’ estimates.

A year ago, Boeing machinists were on strike over a contract impasse that disrupted production at most of the company’s commercial aircraft factories.

Here’s how Boeing performed in the third quarter compared to analyst estimates compiled by LSEG:

• Loss per share: $7.47 per share versus an expected loss of $4.59
• Revenues: 21.97 billion dollars is expected against the expectation of 23.27 billion dollars

Airline customers said they were seeing an improvement at Boeing, with more accurate delivery forecasts compared to complaints in previous years.

Boeing delivered 440 aircraft in the first nine months of the year, while it delivered 291 aircraft in the same period last year. Airlines and other customers pay a large portion of the cost when they buy the planes; Therefore, increasing the delivery speed is very important for Boeing to stop a total cash outflow of nearly $17 billion from the beginning of 2024 until June this year.

Last year was supposed to be a turnaround year for Boeing, but the mid-air explosion of a door panel in January 2024 resulted in a near-catastrophe and led to increased federal scrutiny that slowed production.

But Boeing has made progress. Earlier this month, the Federal Aviation Administration raised Boeing’s 737 Max production limit from 38 to 42 per month, a restriction it put in place after the crash. Ortberg said the company will increase production above that level once it receives FAA approval.

The FAA also allows Boeing to obtain final approvals on some of its planes; This is a sign of increasing confidence from the regulator.

Boeing’s business unit revenue rose 49% from the previous year to $11.09 billion, but operating margins were still negative. The defense unit generated $6.9 billion in revenue in the third quarter with a 1.7% operating margin, up 25% from last year, while its profitable global services business generated nearly $5.4 billion in revenue, up 10%.

The company is not out of the woods. With its Max 7 and Max 10 variants, the 777X is years behind schedule.

Ortberg told CNBC’s “Squawk on the Street” on Wednesday that the anti-icing system for the two Max models, the largest and smallest in the family, “is inadequate from a design standpoint.” “We know what hardware and software changes are required on the aircraft.”

He said Boeing is currently working on certification with the FAA.

Additionally, approximately 3,200 defense unit employees producing F-15 fighter jets and missile systems have been on strike since the summer because the two sides have not yet signed a new contract.