Boeing Stock Plummets 7% Amid MAX 10 Certification Delay

Boeing's stock price plummeted by 7% on September 28 to $184.39 after the company faced a delay in certifying its MAX 10 aircraft due to a software glitch.

The Federal Aviation Administration (FAA) announced that it would not certify the MAX 10 until it is satisfied that the glitch is not a safety issue, which could push back delivery timelines and impact cash flow projections for 2027.

Boeing's CFO, Jay Malave, tied the release of stored-jet inventory to certification, suggesting that a delay in certification would result in a higher cost for the company. He also mentioned that the company's free cash flow has beaten estimates in each of the last five reported quarters, but cautioned that 2026 is still a transitionary period due to pricing penalties and excess advances burning off.

The company is expected to report third-quarter results in late October, which could provide more clarity on its cash flow projections. A positive print with a firm MAX 10 timeline would support the 2027 ramp, while a negative print or a MAX 10 delivery start pushed deep into 2027 would put the $6 billion 2027 estimate at risk.