Boeing’s Q3 Revenue Beats Estimates, But $4.9B 777X Charge Drags BA Stock Down

Boeing Surprises With Revenue Growth Despite Losses

Boeing (BA) posted its third quarter financial results on Wednesday, delivering a rare piece of good news for investors: revenue soared to $23.27 billion, surpassing Bloomberg’s consensus estimate of $22.29 billion. This 30% year-over-year jump is a sharp reversal from previous quarters, hinting at a company slowly regaining its footing after several turbulent years. The improvement marks a significant milestone in CEO Kelly Ortberg’s ongoing turnaround strategy, which places safety and quality at its center.

But the story isn’t all smooth sailing. The aviation giant recorded an adjusted loss per share of $7.47, much deeper than analysts’ anticipated $4.92 loss. The culprit? A one-time, massive $4.9 billion charge related to the 777X program—Boeing’s next-generation wide-body jet that remains stalled due to certification delays. As Ortberg admitted on the earnings call, “It’s obviously a disappointment, but we just need more time to complete the certification.” Reuters reports the delay has forced Boeing to recalibrate its expectations, both for the aircraft’s launch and its financials.

Cash Flow Burn Eases, Signaling Operational Progress

Despite the bruising headline loss, Boeing’s underlying cash picture showed real improvement. Adjusted free cash flow registered at negative $238 million—far better than the negative $884.1 million projected, and a dramatic improvement over last year’s negative $1.34 billion. Operating cash flow turned positive, hitting $1.12 billion versus the expected negative $197 million. For a company long plagued by production setbacks and regulatory scrutiny, these numbers signal a business slowly finding its rhythm again.

Ortberg was quick to highlight this progress, saying, “With a sustained focus on safety and quality, we achieved important milestones in our recovery as we generated positive free cash flow in the quarter.” The comment reflects a broader shift in Boeing’s culture, prioritizing not just output but also reliability and compliance—a lesson learned the hard way after the 737 Max crisis.

777X Delays Weigh Heavily on Outlook

The $4.9 billion charge for the 777X program was the elephant in the room. Initially heralded as Boeing’s flagship for the next decade, the jet has faced persistent setbacks, from supply chain snags to regulatory hurdles. Without certification, the 777X cannot enter service, leaving Boeing exposed to mounting costs and lost sales opportunities. Ortberg noted that the company is working closely with regulators but did not offer a specific timeline for certification, only suggesting that more time is needed.

These delays ripple through Boeing’s balance sheet and investor confidence. As TipRanks pointed out, the charge overshadowed otherwise promising improvements in cash burn, putting pressure on BA stock in early trading. Shares dipped nearly 4.2% after the earnings release, reflecting investor anxiety over the timeline and profitability of the 777X.

737 Max Sales Accelerate Amid FAA Green Light

Not all news was negative. Boeing’s commercial deliveries climbed to 160 jets in Q3, up from 150 last quarter and 116 a year ago. The lion’s share came from the 737 Max, with 121 units delivered—showing clear momentum as airlines renew their fleets. The Federal Aviation Administration (FAA) recently approved Boeing to raise its 737 Max production rate from 38 to 42 aircraft per month, citing improved manufacturing and safety standards.

However, the ramp-up is still in progress. Boeing reported that 737 Max production has stabilized at 38 per month, with Ortberg’s long-term goal set at 47 monthly units. He also projected that certification for the 737 Max 7 and Max 9 derivatives could arrive sometime in 2026, a move that could further boost sales if achieved on schedule.

Wall Street Reaction: Stock Slips Despite Signs of Recovery

BA stock wavered in premarket trading and opened down around 2%, eventually sliding 4.2% by midday. The market’s cool reception underscores a persistent tension: Boeing’s operational recovery is real, but headline risks—especially those tied to high-profile projects like the 777X—continue to overshadow the company’s progress. According to Seeking Alpha, Boeing remains on Wall Street’s watchlist, with analysts closely tracking its ability to balance near-term financial pressures against long-term strategic goals.

For shareholders, the path ahead is likely to be bumpy. While Boeing’s improved cash flow and sales numbers offer hope, the scale of the 777X setback and the company’s reliance on regulatory approvals suggest that volatility will remain a fixture, at least until its flagship jets make it to market.

What’s Next for Boeing?

Looking forward, Boeing faces a delicate balancing act. Ortberg’s turnaround plan has delivered measurable results—especially in cash flow and core operations—but the company’s long-term success will hinge on resolving its most stubborn challenges. The 777X’s fate remains uncertain, and while the 737 Max’s resurgence is encouraging, it’s not enough to offset the financial drag of delayed programs.

For the broader aviation sector, Boeing’s performance is a bellwether: if America’s largest planemaker can navigate regulatory and production challenges, it may pave the way for a more robust industry recovery. But for now, investors and industry watchers will be keeping a close eye on certification milestones and production targets, knowing that the next headline could shift sentiment once again.

Boeing’s Q3 results paint a portrait of a company at a crossroads—making tangible strides in operational stability and cash flow, but still hamstrung by the costly delays of flagship projects. The next chapter will depend on execution: turning regulatory hurdles into certified jets, and promising numbers into lasting investor confidence.