29 October 2025
If you are covering Boeing's latest results, please see the following comment from Matthew Dorset, equity research analyst at Quilter Cheviot:
Boeing's Q3 results were mixed, with sales ahead of expectations and free cash flow (FCF)—the cash left over after expenses—turning positive. However, a $4.9bn charge related to the 777X aircraft program led to a negative operating profit and earnings. Sales came in at $23bn for the quarter, up more than 30% year-on-year and 5% ahead of consensus expectations, with outperformance across all three divisions, including a nearly 40% increase in commercial aircraft deliveries.
On the downside, the operating loss of $5bn and a loss per share of $7.47 were both worse than expected due to the larger-than-anticipated 777X charge, raising concerns about potential further costs in that program.
FCF was finally positive at $238m in Q3, following significant cash burn earlier in the year. This was a notable beat, with consensus having forecast a further outflow of $493m.
Management remains focused on stabilising the business and improving the internal culture around safety and quality. Delays to the 777X program show Boeing is still facing production challenges. More positively, 737 production has stabilised at 38 aircraft per month, and Boeing has agreed with the FAA to increase that rate to 42 per month.
Aircraft demand remains rock solid, with more than 5,900 aircraft in Boeing's backlog and the total value of that backlog up 25% year-on-year. While cultural and operational transformation will be a long-term effort, the improved 737 production rate and return to positive FCF in Q3 mark encouraging progress for Boeing, just over a year into Kelly Ortberg’s tenure as CEO.
