Boeing's Q3 revenue exceeded expectations, with a $4.9 billion provision for the delayed launch of the 777X aircraft

On Wednesday before the U.S. stock market opened, Boeing announced its third-quarter results, reporting a $4.9 billion accounting impairment loss and delaying the first delivery of the 777X jetliner to 2027, highlighting that this American aircraft manufacturer still faces a long road to recovery despite rising aircraft deliveries and improving cash flow.

Boeing reported a loss of $7.47 per share in the third quarter, exceeding analysts' expectations of a $4.44 loss. Revenue was $23.27 billion, higher than the market expectation of $22.3 billion.

Boeing has accumulated nearly $16 billion in impairment losses for the 777X program, which has been delayed by seven years compared to the original schedule and is now further postponed due to stricter regulatory scrutiny. Although CEO Kelly Ortberg still faces multiple challenges to stabilize the company's operations, Boeing is benefiting from a surge in aircraft orders and support from the Trump administration.

"We are now advancing a plan with greater confidence and taking steps to improve our performance," Ortberg stated in a memo to employees, just over a year into his tenure.

Cash Flow Exceeds Expectations and Turns Positive

Boeing's free cash flow in the third quarter was $238 million, marking the company's first positive cash flow since the end of 2023. Analysts had previously expected a cash burn of $884.1 million for the quarter and anticipated that the company would not achieve positive cash flow until the fourth quarter.

The better-than-expected revenue and free cash flow this quarter highlight steady improvements in the production lines of the 737 and 787 Dreamliner.

This has changed the situation over the past five years, where the two models had troubled customers due to high delays and quality issues, dragging down finances. Boeing was forced to raise funds last year after a near-catastrophic incident in early 2024 caused chaos in its production and triggered executive changes.

777X Delay Affects Customer Plans

The 777X is an upgraded version of Boeing's best-selling 777 model and is currently the largest commercial aircraft produced by the company. Airbus is set to release its earnings report later on Wednesday, with its A350 aircraft competing against the 777X.

Emirates Airlines, the largest buyer of the 777X, and Lufthansa, the launch customer for the model, have both had to modify their fleet modernization plans due to Boeing's continued delays in bringing this large jetliner into service. The 777X program has now accumulated nearly $16 billion in impairment losses, delayed by seven years from the original timeline, and is expected to enter service in 2027.

After the earnings report was released, Boeing's stock fell 0.64% in pre-market trading. As of Tuesday's close, the stock has risen 26% this year.

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