Boeing free cash flow beats estimates despite production challenges

Investing.com - Boeing’s free cash flow topped expectations in the third quarter, even as its main commercial airplane unit slumped to a bigger-than-anticipated loss amid sluggish deliveries.

Free cash flow for the period came in at $464 million, surpassing Bloomberg consensus estimates of $325.1 million. Analysts are paying particularly close attention to this figure, viewing it as a metric of Boeing’s operational health following years of corporate turmoil spurred by safety concerns.

Shares of Boeing were marginally higher in premarket U.S. trading on Tuesday.

The third quarter featured a series of wins for the group, including the securing of the U.S. Navy’s sixth-generation F/A-XX fighter contract and the certification of the last two versions of its 737 MAX jet. A total of 363 737 MAX planes were also delivered in the first nine months of 2026, the fastest pace in Boeing history.

Revenue at Boeing’s defense, space and security business climbed by 15% versus a year ago to $7.94 billion, outpacing projections of $7.41 billion.

However, the company’s key commercial airplanes division reported a $697 million loss, compared to analysts’ forecasts for a deficit of $360.8 million. Engine delivery problems hampered plans to ramp up output of the 737 MAX and 787 Dreamliner jets.

Boeing said it is continuing to work to boost 737 MAX output to 47 a month, while CEO Kelly Ortberg flagged in September engine performance delivery issues had kept monthly 787 production from climbing to ten from its current rate of eight.

Since taking over in 2024, Ortberg has overseen a drive to overhaul Boeing’s debt-heavy balance, including through the sale of non-core assets. But supply chain problems and production snags have prevented the company from expanding output.

The company reported an overall loss of $0.26 a share, versus projections for a loss of $0.21. Revenue rose by 4% to $24.19 billion, exceeding expectations of $23.85 billion. Boeing ended the quarter with $25.2 billion in net debt.

Original Article

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