Boeing Shares Plunge as 737 MAX Production Ramp Delays Push Free-Cash-Flow Targets to 2029

Boeing’s stock fell roughly 10 % on Tuesday after the company warned that the ramp-up of 737 MAX output will not reach the planned 47 jets per month until early 2027 and that the 52-jet-per-month milestone will be delayed to the second half of 2027. The guidance also shifted the timeline for achieving $10 billion in annual free cash flow (FCF) from 2028 to 2029, prompting a sharp market reaction.

Boeing Shares Tumble 10 Percent as Production Delays Push 737 Targets to 2027

Since CEO Kelly Ortberg took the helm in August 2024, Boeing has been working to restore confidence after safety-related crises that halted production and strained its balance sheet. Earlier guidance had projected a 47-jet-per-month rate by summer 2026 and a $10 billion FCF target by 2028. The latest earnings call revealed that wing-assembly bottlenecks and additional capital expenditures for a new Navy fighter contract are slowing the cadence.

Boeing Shares Tumble 10 Percent as Production Delays Push 737 Targets to 2027

• Revenue: $24.19 billion, up 4 % year-over-year, beating the $23.84 billion consensus.

RTTNews

• Adjusted loss per share: $0.34 vs. the $0.21 expected loss.

RTTNews

• Free cash flow: $464 million for the quarter, above Bloomberg’s $325.1 million estimate.

RTTNews

• Backlog: Record $745 billion, including over 6,300 commercial aircraft.

RTTNews

• Production rates: 737 MAX output at roughly 41 jets per month; target of 47 jets/month expected early 2027; 52 jets/month postponed to late 2027.

Boeing Shares Tumble 10 Percent as Production Delays Push 737 Targets to 2027

• Cash-flow outlook: $2 billion in 2026, $3 billion in 2027, $6 billion in 2028, and $10 billion in 2029.

RTTNews

Ortberg noted that the recent certification of the 737 MAX 7 and MAX 10, along with a new defense contract for the Navy’s F/A-XX fighter, demonstrate momentum but do not offset the need for a careful ramp. CFO Jay Malave added that both commercial and government segments delivered double-digit margins in the quarter, underscoring profitability outside the 737 MAX bottleneck.

CNBC

Free-cash-flow projections for 2027 and 2028 differ across sources. Bloomberg’s consensus expected $5.6 billion in 2027 and $9.6 billion in 2028, while Boeing’s own guidance cites $3 billion and $6 billion respectively. No source provided a definitive explanation beyond the noted production and capital-expenditure delays.

Bloomberg

• “It's more important that we do this ramp right than what particular month we achieve a rate break,” — Kelly Ortberg, CEO

Euronews

• “Everybody wants us to go faster. I get that, but we're going to stay disciplined as we ramp up here,” — Kelly Ortberg, CEO

Euronews

• 2027 777-9 certification: Boeing expects FAA approval by mid-2027, with deliveries the following year.

Boeing shares tumble due to production delays

• Production milestones: The company aims to achieve the 47-jet-per-month rate in early 2027 and the 52-jet-per-month rate in the second half of 2027.

Boeing Shares Tumble 10 Percent as Production Delays Push 737 Targets to 2027

• Analyst updates: Wall Street is expected to revise its cash-flow models after the earnings call, potentially lowering 2027-2028 targets further.

Channel News Asia - CNA

The delayed 737 MAX ramp and revised cash-flow timeline highlight the tension between Boeing’s strong order book and its ability to convert those orders into cash and profit in the near term.

Boeing shares plunge 9% as production delays threaten recovery despite record $745 billion backlog