Boeing stock sinks 10% as company says it won't significantly ramp up 737 Max production until late 2027 — SkimNews
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- Boeing will not significantly ramp up 737 Max production until the second half of 2027, citing slower-than-expected wing production, with a target rate of 52 planes per month.
- Boeing stock fell about 10% in late afternoon trading following the production timeline announcement, reflecting investor concern over delayed output growth.
- CEO Kelly Ortberg stated the company is prioritizing production stability over speed, emphasizing safety, quality, and efficiency improvements in a staff memo and CNBC interview.
- Boeing reported a narrowed third-quarter net loss of $116 million versus a $5.34 billion loss a year earlier, driven by gains in its defense unit.
- The commercial aircraft unit delivered 161 jets in Q3 but saw revenue fall 3% to $10.72 billion and a negative 6.5% operating margin due to supply chain and delivery mix issues.
- The FAA certified the 737 Max 10 in late October, completing approval for the entire Max family after greenlighting the Max 7 in August.
Why it matters: Boeing delays meaningful 737 Max output growth by nearly two years, pushing the 52-per-month target to late 2027—this prolongs cash flow constraints despite improved earnings, as airlines wait for deliveries and investors question execution amid rising expectations.
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