Boeing shares slide after CEO gives cautious production and cashflow timetable

Market reaction

Boeing shares fell about 9% on Tuesday after the planemaker delivered a more cautious production-growth timetable than Wall Street had expected. Investors reacted to comments from Chief Executive Kelly Ortberg about the pace at which Boeing expects to ramp 737 MAX output and hit key free-cash-flow milestones, deepening questions about how recent certification wins and defence contracts will translate into profits.

Ortberg said Boeing does not expect 737 MAX output to reach 52 aircraft per month until the second half of 2027. The company plans to stabilise output at 47 planes per month first, and Ortberg told analysts and investors that achieving steady, predictable production at that rate will likely take into next year. After his remarks, shares moved lower, suggesting analysts had been hoping for a quicker ramp.

"It's more important that we do this ramp right than what particular month we achieve a rate break," Ortberg said, adding that Boeing must address variability in wing and fuselage production especially at its Kansas operation to ensure predictable output.

Aviation consultant Richard Aboulafia of AeroDynamic Advisory described progress as "slow but steady," but warned that the supply chain remains a major concern and is only partly within Boeing's control.

Financial outlook and results

Ortberg also put a date on a long-promised recovery in cash generation, saying Boeing expects to reach $10 billion (€8.98bn) in annual free cash flow in 2029. He projected free cash flow would grow gradually from about $2 billion (€1.7bn) in 2026 to $6 billion (€5.2bn) in 2028 and then to $10 billion in 2029, with higher levels thereafter.

The CEO's comments came alongside third-quarter results showing a much smaller loss than a year earlier: Boeing reported a Q3 loss of $116 million (€100m), compared with a loss of $5.3 billion (€4.6bn) in the year-ago period, which largely reflected delays related to certification of the 777X. Revenues rose 4% to $24.2 billion (€20.9bn), helped by increased defence, space and security deliveries and stronger Boeing Global Services sales. Commercial-aircraft revenues dipped year-over-year as deliveries remained modest: Boeing delivered 161 aircraft in the quarter, only one more than in the same period in 2025.

Earnings-per-share came in as a larger loss than analysts expected, though the initial earnings release did not trigger a strong market move; it was the more cautious forward guidance that appeared to weigh most on the stock.

Ortberg noted recent operational and program milestones including Federal Aviation Administration certification of the 737 MAX 7 and MAX 10 and a major Pentagon award for the US Navy's next-generation fighter jets as evidence of momentum. He expressed confidence that the much-delayed 777X would be certified in 2027 and projected deliveries of 10 to 15 aircraft next year, saying the company was "ready to go execute."

Ortberg, who became CEO in August 2024 as Boeing worked to recover from multiple 737 MAX accidents and a high-profile in-flight structural incident in January 2024, emphasised the company's emphasis on rebuilding safety and quality. "Over the last two years, we've made exceptional progress restoring trust, retiring risk, and transforming our culture and rebuilding the foundation of safety and quality that will help ensure durable success," he said. He added the company has been deliberate about not getting ahead of itself given uncertainties tied to the production ramp, certification timing and programme execution.

While investors want a faster recovery, Ortberg said Boeing will remain disciplined as it ramps production, seeking predictability over speed. That cautious stance combined with persistent supply-chain risks helps explain why a promising run of certification and defence wins has not yet translated into a clear near-term uplift in the company's share price.