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Boeing jetliner production challenges weigh on third-quarter results

By Thomson Reuters Oct 27, 2026 | 6:33 AM

By Dan Catchpole and Shivansh Tiwary

SEATTLE, Oct 27 (Reuters) – Boeing posted a bigger third-quarter loss than expected on Tuesday, as supply-chain challenges and production delays in its commercial airplane division overshadowed stronger margins ​across the rest of the company.

Shares of the US planemaker fell ‌2.5% in premarket trading even as Boeing continues to recover from years of crises and controversies that dented its reputation, drained cash and saddled it with a heavy debt load.

During the quarter, Boeing secured certification for the 737 MAX 7 from US regulators, won ‌the US ​Navy’s sixth-generation F/A-XX fighter contract and generated free ⁠cash flow for another quarter, ⁠while certification of the larger MAX 10 followed in October.

“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,” CEO Kelly Ortberg said in a memo to employees after the results.

Boeing reported ⁠an adjusted loss of 34 cents per ⁠share for the quarter through September, compared with market expectation ​of 21 cents, according to data compiled by LSEG.

Revenue at Boeing Commercial Airplanes dipped ​slightly to $10.7 billion, while operating loss stood at $697 million and ‌margin shrank by just 6.5% compared with a contraction of 48.3% a year ago.

The company attributed the performance to less profitable jetliner deliveries and higher production costs, including from its supply chain.

Boeing has struggled to increase 737 output from ⁠42 jets a month to 47, which it hoped to hit during the summer. It has not been able to make wings fast enough, CEO Kelly Ortberg ⁠said at an industrial ‌conference in September.

At Boeing’s defense division, higher deliveries, improved ⁠operational performance and a $252-million sale of a subsidiary contributed to ​nearly $500 ‌million in quarterly earnings with an operating margin of ​6.2%, up ⁠from 1.7% a year ago.

Boeing Global Services earned $1 billion and posted an operating margin of 18.3%.

The US planemaker ended the quarter with $25.2 billion in net debt, down slightly from $25.9 billion in the previous three months and $30.4 billion a year ago.

(Reporting by Dan Catchpole in Seattle and Shivansh Tiwary in Bengaluru; Editing by Lincoln ​Feast and Arun Koyyur)