Key Moments
- Boeing reported an adjusted loss of 34 cents per share for the quarter through September, missing the 21 cents per share loss expected by the market.
- Commercial airplane revenue slipped to $10.7 billion, with a $697 million operating loss and a 6.5% margin contraction tied to supply-chain and production issues.
- Net debt declined to $25.2 billion at quarter-end, down from $25.9 billion in the prior quarter and $30.4 billion a year earlier.
Production Strains Hit Quarterly Performance
SEATTLE, Oct 27 (Reuters) – Boeing reported a larger-than-anticipated loss for its third quarter, as persistent supply-chain disruptions and delays in its commercial jet manufacturing weighed on results and offset stronger profitability in other business segments.
The stock of the US aerospace group fell 2.5% in premarket trading. The company is still working through a prolonged period of crises and controversies that damaged its standing, depleted cash, and left it with a substantial debt burden.
Commercial Airplanes Under Pressure
In its commercial division, Boeing’s revenue eased slightly to $10.7 billion. The unit posted an operating loss of $697 million, with its margin narrowing by 6.5%, a far smaller contraction than the 48.3% margin decline recorded a year earlier.
The company linked the segment’s performance to a mix of less profitable aircraft deliveries and elevated production expenses, including costs tied to its supply network.
Boeing has faced challenges lifting monthly 737 production from 42 aircraft to 47, a level it had aimed to reach during the summer. CEO Kelly Ortberg previously told an industrial conference in September that the company has not been able to produce wings quickly enough to meet that target.
Certification Milestones and Defense Wins
During the quarter, Boeing obtained certification for the 737 MAX 7 from US regulators and secured the US Navy’s sixth-generation F/A-XX fighter contract. The company also generated positive free cash flow for another consecutive quarter. Certification for the larger MAX 10 followed in October.
In a memo to employees after the release of the results, CEO Kelly Ortberg said, “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.”
Segment Performance Overview
| Business Segment / Metric | Current Quarter | Prior Year Comparable |
|---|---|---|
| Adjusted loss per share | 34 cents | Market expectation: 21 cents loss |
| Boeing Commercial Airplanes revenue | $10.7 billion | Not specified |
| Boeing Commercial Airplanes operating margin change | -6.5% | -48.3% |
| Boeing Defense – quarterly earnings | Nearly $500 million | Not specified |
| Boeing Defense – operating margin | 6.2% | 1.7% |
| Boeing Global Services – earnings | $1 billion | Not specified |
| Boeing Global Services – operating margin | 18.3% | Not specified |
| Net debt (end of quarter) | $25.2 billion | $30.4 billion a year ago |
Defense and Services Drive Margin Improvement
Boeing’s defense unit delivered nearly $500 million in earnings for the quarter. The company cited higher deliveries, better operational execution, and proceeds from a $252-million sale of a subsidiary as contributors to the performance. The division’s operating margin improved to 6.2%, up from 1.7% a year earlier.
Boeing Global Services generated $1 billion in earnings and recorded an operating margin of 18.3%.
Debt Position and Balance Sheet
The company finished the quarter with net debt of $25.2 billion, a modest reduction from $25.9 billion three months earlier and down from $30.4 billion at the same point a year before.
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