Boeing production costs weigh on third-quarter results despite narrower net loss

Boeing reported a larger-than-expected adjusted loss for the third quarter ended September 30, Reuters reported on October 27, as production and supply-chain costs weighed on its commercial aircraft business. The US planemaker’s overall net loss narrowed sharply from a year earlier, but the results showed that higher sales elsewhere had yet to remove pressure on jetliner margins.

The adjusted loss was 34 cents a share, against a 21-cent loss expected by analysts in LSEG data cited by Reuters. CNBC reported a net loss of $116 million, or 26 cents a share, compared with $5.34 billion a year earlier. Revenue rose 4% to $24.19 billion. The adjusted and net figures use different accounting measures.

Why Boeing’s commercial aircraft margins remain under pressure

Boeing attributed the commercial unit’s performance to a less profitable mix of jetliner deliveries and higher production costs, including supply-chain costs, Reuters reported. CNBC also cited Boeing’s estimate of higher costs associated with future production rate adjustments. The figures show why delivering roughly the same number of aircraft did not translate into stronger commercial revenue or an operating profit.

The pace of 737 production remains central to that picture. Reuters reported that Boeing had struggled to raise output from 42 to 47 aircraft a month, a target it had hoped to reach during the summer. Chief executive Kelly Ortberg said at an industrial conference in September that the company could not make wings fast enough. CNBC reported that Boeing was producing about 47 737 Max jets a month and that Ortberg expected a further increase next year. Boeing has not given a confirmed date for resolving the supply constraints behind that outlook.

Defense and services helped offset the jetliner loss

Boeing’s defense revenue rose 15% from a year earlier to $7.94 billion, according to CNBC. Reuters reported that the division earned nearly $500 million, with a 6.2% operating margin, up from 1.7% a year earlier. It attributed the improvement to higher deliveries, better operating performance and a $252 million subsidiary sale. Boeing Global Services earned $1 billion and posted an 18.3% operating margin, Reuters reported.

CNBC reported free cash flow of $464 million, up from $238 million in the third quarter of 2025. Reuters said Boeing ended September with $25.2 billion in net debt, down from $25.9 billion three months earlier and $30.4 billion a year earlier. The company also secured US regulatory certification for the 737 MAX 7 during the quarter, Reuters reported, while certification of the larger MAX 10 followed in October.