Boeing (BA) 3Q 2025 earnings

Boeing, the top US exporter, has announced a significant milestone in its journey towards recovery. The company’s jetliner deliveries have driven it back into cash-positive territory for the first time in nearly two years. However, this achievement is somewhat tempered by a $4.9 billion charge related to additional delays in the production of its long-awaited 777X wide-body plane.

The 777X, an updated version of Boeing’s 777 plane, has been in development for several years. Despite taking its first flight nearly six years ago, the aircraft has yet to receive regulator approval. Boeing now expects the first delivery to take place in 2027, leading to the non-cash charge. The company’s CEO, Kelly Ortberg, has been working to steady the manufacturer’s supply chain and production lines since taking the helm in August 2024.

Financial Performance

Boeing’s financial performance has shown signs of improvement, with the company generating free cash flow of $238 million in the third quarter. This marks the first time Boeing has been in the black on this metric since late 2023. Revenue jumped 30% to $23.27 billion for the quarter, up from $17.84 billion a year ago and ahead of analysts’ estimates. However, the company still reported a loss of $4.78 billion, or $7.14 a share, in the three months ended September 30.

In terms of deliveries, Boeing is on track to deliver the most aircraft this year since 2018. The company has delivered 440 airplanes in the first nine months of the year, up from 291 in the same period last year. This increase in delivery pace is crucial for Boeing to stem the outflow of cash, which has totaled close to $17 billion since the start of 2024.

Challenges Ahead

Despite the progress made, Boeing still faces significant challenges. The company’s Max 7 and Max 10 variants, as well as the 777X, are years behind schedule. Additionally, about 3,200 of its defense unit workers have been on strike since the summer, affecting the production of F-15 fighter jets and missile systems. The strike is a result of a contract impasse between the company and its workers.

Boeing’s commercial unit revenue rose 49% from a year earlier to $11.09 billion, though it still had negative operating margins. The company’s defense unit generated $6.9 billion, up 25% from last year, with a 1.7% operating margin. The global services business brought in nearly $5.4 billion, a 10% increase. While these numbers are promising, Boeing’s journey towards full recovery is likely to be long and challenging.

Regulatory Environment

The regulatory environment has also played a significant role in Boeing’s recovery. The Federal Aviation Administration (FAA) lifted a production cap for Boeing’s 737 Max to 42 a month from 38, a restriction that was put in place after an accident. The FAA is also now allowing Boeing to perform final signoffs on some of its aircraft, a sign of increased confidence from the regulator. These developments are likely to have a positive impact on Boeing’s production and delivery pace in the coming months.