CHICAGO, Oct. 27 — Boeing shares tumbled nearly 10 percent on Tuesday, their worst single-day decline in more than 18 months, after the company said it would miss its 737 production and jet-delivery targets for the year and issued a weaker free-cash-flow outlook.
Chief Executive Kelly Ortberg told analysts that the planemaker would fall short of both its annual target for 737 output and its aircraft-delivery goal, dealing a fresh setback to a commercial recovery still rebuilding from a 2024 labor strike and the prolonged grounding of the 737 MAX following a mid-flight panel blowout. The stock fell 9.6% to $170.23 in afternoon trading, its steepest single-day drop since April 3, 2025.
The shortfall underscores the fragility of Boeing’s turnaround. The 737 family is the company’s highest-volume product and its primary source of cash, and any slip in build rates ripples directly into deliveries, revenue and the working capital needed to fund operations. A slower ramp also complicates the supplier network that has struggled to stabilize after years of unstable order flow.
Investors had looked for the company to demonstrate steady progress toward its stated aim of stabilizing 737 MAX production at 47 jets a month by this summer. Tuesday’s guidance instead signaled that the pace will not be reached until early 2027, reviving doubts about the timing of any return to sustained profitability. Boeing still plans to lift output to 52 jets a month in the second half of 2027, but wing production remains a major bottleneck, Ortberg said on the call.
The company also pushed back its free-cash-flow growth outlook by a year. It now expects approximately $3 billion in free cash flow for 2027, far below the analyst consensus of $5.5 billion, according to LSEG data. Boeing had previously aimed to reach $10 billion in annual free cash flow by 2028; that target is now slated for 2029.
Boeing also said it will not reach its 500-aircraft delivery target this year, Chief Financial Officer Jay Malave told analysts, as the delay in stabilizing production at 47 a month translates into fewer deliveries.
The selloff trimmed billions from Boeing’s market value and pressured the broader industrial sector. Rival Airbus, by contrast, has held a steadier production cadence, widening the competitive gap at a moment when airlines worldwide are pressing for more fuel-efficient narrowbody jets to meet post-pandemic travel demand.
Boeing reported an adjusted loss of 34 cents per share for the quarter through September, wider than the 21 cents analysts had expected, according to LSEG data. Its commercial airplanes division posted revenue of $10.7 billion and an operating loss of $697 million.
Boeing said it continues to prioritize quality and safety oversight over raw speed, but analysts noted that the commercial unit’s financial health remains the central question for the company as it heads into 2027.
— VGMG Global Aerospace & Markets Desk