Boeing Reports Q3 2025 Revenue of $23.3 Billion Amidst 777X Program Charge

Boeing (BA.US) reported third quarter 2025 revenue of $23.3 billion, an increase of 30% compared to the prior year's quarter. The company posted a core loss per share of ($7.47), which notably missed the analyst estimate of ($2.46). This loss was primarily influenced by a significant $4.9 billion pre-tax earnings charge related to the 777X program, which alone impacted the loss per share by $6.45. Operating cash flow for the quarter stood at $1.1 billion.

Commercial Airplanes Performance and Challenges

The Commercial Airplanes segment saw revenue rise to $11.1 billion in the third quarter, largely due to higher delivery volumes. Deliveries increased by 38% year-over-year to 160 airplanes, marking the highest quarterly total since 2018.

Despite this, the operating margin for Commercial Airplanes was negatively impacted by the $4.9 billion charge associated with the 777X program. The company now anticipates the first delivery of the 777-9 to occur in 2027, a delay from previous expectations. Production of the 737 stabilized at 38 per month and was jointly agreed with the FAA to increase to 42 per month in October, while the 787 program continued to stabilize production at seven per month.

Defense, Space & Security and Global Services Growth

Defense, Space & Security reported third-quarter revenue of $6.9 billion, representing a 25% increase from the previous year, with an operating margin of 1.7%. This segment's performance reflects stabilizing operational performance and higher volume. The backlog for Defense, Space & Security grew to $76 billion.

Global Services also demonstrated strong performance, with revenue reaching $5.4 billion, up 10% year-over-year. The operating margin for Global Services improved to 17.5%, driven by favorable commercial volume and mix. The segment secured an award from the U.S. Navy for F/A-18 aircraft landing gear repair and entered a strategic collaboration with Korean Air for predictive maintenance analytics.

Management Outlook and Backlog Strength

Management highlighted achieving important milestones in their recovery, including generating positive free cash flow and the agreement with the FAA to increase 737 production. CEO Kelly Ortberg acknowledged the disappointment regarding the 777X schedule delay but emphasized the aircraft's strong flight test performance and the company's focus on development programs.

Total company backlog grew to $636 billion at quarter-end, including over 5,900 commercial airplanes valued at $535 billion. This robust backlog provides a strong foundation for future revenue despite current program challenges.