Boeing's shares dropped 9.5% in early trading on Tuesday after CEO Kelly Ortberg revealed that the company will miss its production targets for the 737 jetliner. Ortberg stated that Boeing will not reach its goal of producing 47 jets per month until early 2027, pushing back the timeline from the previously expected summer 2026. This delay also means Boeing will fall short of its delivery target of 500 jets this year.
The company also lowered its free cash flow projections, expecting US$3 billion next year and US$6 billion in 2028. These figures are significantly below Wall Street analysts' consensus estimates of US$5.6 billion and US$9.6 billion, respectively. The revised outlook contributed to the sharp decline in Boeing's stock price, which hit lows not seen since April 2025.
Ortberg acknowledged production challenges, particularly in manufacturing wings quickly enough, during an interview on CNBC. He emphasized the need for disciplined growth, stating, 'We are ramping up aircraft, and we’re doing that in the right way.' Despite ongoing issues with the 787 program and 777 freighters, Boeing secured several key milestones, including certification for the 737 MAX 7 and winning the US Navy’s F/A-XX fighter contract.
Boeing reported an adjusted loss of 34 cents per share for the quarter, worse than the expected 21 cents. Revenue at Boeing Commercial Airplanes dipped slightly to US$10.7 billion, with an operating loss of US$697 million. However, the defense division saw nearly US$500 million in earnings, and the company's net debt decreased to US$25.2 billion.