The Boeing Company (NYSE:BA) reported a wider third-quarter 2025 loss as charges tied to its 777X program overshadowed higher commercial airplane deliveries.
Adjusted loss per share came in at $7.47, missing the $5.15 loss estimate, while revenue rose 30% year over year to $23.27 billion, topping the $21.97 billion consensus.
Impact of 777X Program Charges
Results included a $4.9 billion pre-tax charge related to updated 777X certification timing, reducing earnings by $6.45 per share.
Also Read: Boeing Wins Billion Dollar Contract To Strengthen Patriot Missile Defense
Free cash flow was $238 million, with operating cash flow of $1.12 billion. Boeing ended the quarter with $23 billion in cash and investments and $53.4 billion in debt.
The company’s backlog increased to $635.7 billion, including more than 5,900 commercial airplanes.
Commercial Airplanes’ revenue climbed to $11.1 billion, driven by 160 deliveries, the highest quarterly total since 2018; however, the segment posted an operating loss of $5.35 billion.
The 737 program stabilized production at 38 aircraft per month, and in coordination with the FAA, Boeing plans to increase production to 42 per month starting in the fourth quarter, marking continued progress in restoring output levels and supply chain consistency. The 787 program remained steady at seven aircraft per month.
Defense, Space & Security revenue rose 25% to $6.9 billion, generating $114 million in operating income, supported by new U.S. and international contracts.
Global Services revenue increased 10% to $5.37 billion, with operating margin improving to 17.5%, driven by higher commercial volume and new service awards.
CEO Commentary on Recovery and Delays
“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 and jointly agreed with the FAA in October to increase 737 production to 42 per month,” stated Kelly Ortberg, Boeing president and chief executive officer.
“While we are disappointed in the 777X schedule delay, the airplane continues to perform well in flight testing, and we remain focused on the work ahead to complete our development programs and stabilize our operations in order to fully recover our company’s performance and restore trust with all of our stakeholders,” he added.
Ongoing Labor Disputes
Recently, Boeing’s defense-machinist workers at three Midwest plants voted to reject the company’s latest contract offer, extending a strike that began nearly three months ago. The union — representing about 3,200 machinists — criticised Boeing for offering “no meaningful improvements” in retirement benefits or wage increases for long-tenured employees.
Price Action: BA shares were trading lower by 2.91% to $216.84 at last check Wednesday.
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