Boeing narrows Q3 loss, posts positive cash flow and record $745B backlog as 737 certifications arrive

Boeing posted a sharply narrower third-quarter loss on $24.188 billion in revenue while generating positive operating cash flow and lifting its backlog to a record $745 billion, according to results released Oct. 27 from Arlington, Virginia.

The company reported a GAAP net loss of $116 million, or 26 cents a share, and a core loss of 34 cents a share. Operating cash flow was $1.496 billion and free cash flow, a non-GAAP measure, was $464 million. Boeing said operating cash flow benefited from working-capital timing but was partly offset by about $700 million in Department of Justice settlement payments tied to long-running legal fallout from the 737 MAX crisis. The quarter also underscored continued pressure in its main jetmaking business, where the commercial-airplanes unit remained unprofitable with a negative 6.5% operating margin.

In commercial airplanes, Boeing delivered 161 aircraft and booked 300 net orders in the quarter. The division generated $10.720 billion in revenue, and its backlog rose to more than 6,300 aircraft valued at a record $612 billion. The figures point to steady demand for Boeing jets even as the company continues working through production and profitability challenges.

Boeing highlighted several program milestones in the quarter. The 737-7 received amended type certification from the Federal Aviation Administration, and the 737-10 received amended type certification in October. Those approvals are significant because the 737 MAX family has faced intense regulatory scrutiny since two fatal crashes in 2018 and 2019 led to a worldwide grounding and years of safety oversight. Boeing said the 737 program is progressing toward stabilized production of 47 aircraft a month, while the 787 program is stable at eight a month. The 777X remains on track for first delivery in 2027. Compared with the second quarter, revenue slipped slightly from $24.6 billion, while operating cash flow improved from roughly $1.4 billion and backlog increased from $715 billion.

Outside commercial airplanes, Boeing’s other businesses provided additional support. Defense, Space & Security reported $7.935 billion in revenue and a record $101 billion backlog. Boeing also said it was selected by the U.S. Navy to design, build and deliver the F/A-XX next-generation fighter aircraft, a major award the company listed among the quarter’s highlights. Global Services, which provides maintenance, parts and other aviation support, reported $5.574 billion in revenue and a backlog of $33 billion.

At the end of the quarter, Boeing had $20.7 billion in cash and marketable securities and $45.9 billion in consolidated debt. Boeing President and CEO Kelly Ortberg said in the earnings release: “Recent milestones, including certification of the 737‑7 and 737‑10 and selection to design and build the Navy's sixth-generation fighter aircraft, are important steps as we continue building on our progress. But we are not done. We remain focused on safety and quality as we redouble our efforts on Lean and disciplined execution to deliver on our commitments and build the durable performance our stakeholders expect.”