Aviation

Boeing cuts losses in the third quarter, with orders at record levels

The defence sector is up by 15 per cent, whilst the commercial aviation sector remains under pressure: the share price has fallen by almost 10 per cent on the stock market

by Mara Monti

27 October 2026

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4' min read

Translated by AI

Versione italiana

4' min read

Translated by AI

Versione italiana

Boeing is accelerating its industrial and financial recovery, but profitability remains fragile. In the third quarter of 2026, the US group reported revenue of $24.2 billion, up 4 per cent on the same period the previous year, whilst the net loss narrowed to $116 million, compared with $5.34 billion in the third quarter of 2025.

This improvement is driven primarily by growth in the defence and services sectors, together with the gradual return to normal of operating results. However, there are still pressures on the commercial aircraft sector, where the mix of deliveries, rising supply chain costs and adjustments to production rates continue to weigh on margins.

The most significant figure on the industrial front is the total order book, which has risen to a record level of 745 billion dollars. This volume provides visibility on future demand, but it will need to translate into on-time deliveries, greater production efficiency and cash generation.

However, the results have failed to impress the market due to the operating loss recorded by the commercial aircraft division and the failure to meet the target of delivering 500 737 aircraft by the end of the year, as announced by CEO Kelly Ortberg: the share price fell by almost 10 per cent on the stock market.

Financial results are improving, but profitability remains limited

During the quarter, Boeing reported an operating profit of $354 million, following a loss of $4.78 billion a year earlier. The operating margin returned to positive territory at 1.5 per cent, compared with -20.5 per cent in the third quarter of 2025.

The loss per share also fell significantly, from $7.14 to $0.26.

Whilst the improvement is significant on a year-on-year basis, it does not yet represent a full return to profitability. The core operating margin stood at 0.8 per cent, a figure which highlights how much work remains to be done to put the group back on a more solid performance trajectory.

In the first nine months of the year, revenue reached $70.97 billion, up 8 per cent from the $65.52 billion recorded in the January–September 2025 period. The cumulative net loss fell to 551 million, down from nearly 6 billion last year.

Positive cash flows, debt still high

On the financial front, Boeing generated an operating cash flow of approximately $1.5 billion during the quarter, up 33 per cent from the $1.12 billion recorded in the third quarter of 2025. Free cash flow, after capital expenditure on property, plant and equipment, stood at $464 million, compared with $238 million a year earlier.

However, the quarterly figure is accompanied by a more nuanced picture over the cumulative period: in the first nine months of 2026, free cash flow remained negative at $359 million, although this represented a marked improvement on the loss of $2.25 billion recorded in the same period of 2025.

Industrial investment, concentrated mainly at the Charleston and St Louis sites, also continues to require significant resources.

At the end of September, cash and short-term financial investments totalled $20.7 billion, compared with $20 billion at the end of the previous quarter. Consolidated debt remained at $45.9 billion. The company also has $10 billion in undrawn credit facilities.

Commercial aircraft: orders on the rise but margins under pressure

The Commercial Airplanes division weighed on the results, posting revenue of $10.72 billion, down 3 per cent year-on-year. Deliveries totalled 161, essentially unchanged from the 160 recorded in the third quarter of 2025.

However, the division recorded an operating loss of $697 million, with a negative margin of 6.5 per cent. This was primarily due to a less favourable product mix, higher costs associated with adjustments to future production rates, and an increase in estimated costs across the supply chain.

The comparison with 2025 is also affected by the significant negative factors that had held back the 777X programme in the previous period.

On the operational front, Boeing aims to stabilise production of the 737 family at a rate of 47 aircraft per month, but according to CEO Kelly Ortberg, Boeing will not be able to reach this production rate before early 2027, a setback that will also prevent the company from meeting its target of 500 deliveries this year.

Meanwhile, during the quarter, the 737-7 received amended type certification from the Federal Aviation Administration, whilst the 737-10 achieved the same milestone in October.

The 787 programme, on the other hand, is maintaining a steady production rate of eight aircraft per month. Flight testing continues on the 777X for the certification of the 777-9 model, with the first delivery still scheduled for 2027.

During the quarter, the division secured 300 net orders, including orders from Turkish Airlines, Ethiopian Airlines and Lufthansa. The commercial aircraft order book exceeded 6,300 aircraft, with a value of 612 billion dollars.

The challenge remains to convert substantial demand into reliable production volumes, without compromising safety and quality standards or adding to cost pressures.

Defence drives growth: revenue up 15%

More encouraging results have come from the Defence, Space & Security division. The division recorded revenue of $7.94 billion, up 15 per cent from the $6.90 billion recorded in the third quarter of 2025.

Operating profit rose to 492 million, compared with 114 million the previous year, whilst the margin improved from 1.7 per cent to 6.2 per cent. This figure also benefited from a capital gain of 252 million dollars arising from the sale of the stake in HRL Laboratories, as well as from improved operational performance.

One of the most significant strategic developments is the US Navy’s selection of the company to design, build and deliver the new-generation F/A-XX fighter aircraft.

The division has also secured a seven-year contract to expand production of PAC-3 missile defence systems. The defence order book has reached a record $101 billion, 23 per cent of which is from customers outside the United States.

Services confirm higher margins

Global Services ended the quarter with revenue of $5.57 billion, up 4 per cent. Operating profit rose by 9 per cent to $1.02 billion, whilst the operating margin increased from 17.5 per cent to 18.3 per cent.

The services order book has reached 33 billion dollars. With margins significantly higher than those in commercial aviation, the sector contributes to the diversification of the group’s results and its economic stability.

“We’re not done yet,” emphasised Kelly Ortberg, Boeing’s chairman and CEO, commenting on the progress made. She highlighted safety, quality, operational efficiency and discipline in execution as priorities for consolidating the recovery and meeting commitments to stakeholders.