Updated at 8:49 a.m. EDT
boeing (licensed in letters) – Get a free report posted a wider-than-expected third-quarter loss on Wednesday, cutting its full-year target for 737 Max deliveries, but said it is on track to meet its free cash flow forecasts amid rising demand for airplanes.
Boeing, which has reported only one profitable quarter in the past three years, said its adjusted headline loss for the three months ending in September was set at $3.26 per share, narrowing from a loss of $6.18. per share it reported during the same period last year, but outside the Street consensus forecast of $2.96 per share.
Group revenue, Boeing said, rose 13.4% from last year to $18.1 billion, narrowly beating analysts’ forecasts of $18.01 billion.
Boeing delivered 105 planes to customers during the three months ending in September, the company said, including 27 planes in the month of September alone. However, deliveries of the 737 Max aircraft, the popular narrow-body aircraft, fell to the lowest levels since August 2021.
However, adjusted free cash flow was pegged at -$310 million for the quarter, and Boeing reiterated its full-year guidance of a total of between $3 billion and $5 billion. It also anticipates that 787 production will increase to 5 aircraft per month by the end of the year.
However, it cut its 737 Max delivery target to an annual total of between 375 and 400, down from its previous estimate of between 400 and 450, due to an existing defect in the cargo plane. So far this year, Boeing has delivered 286,733 aircraft, 70 of them during the third quarter.
“We continue to make progress in our recovery and, despite near-term challenges, remain on track to meet the financial goals we set for this year and for the long term,” said CEO Dave Calhoun. “We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand.”
“The important work we are doing to add rigor to our quality systems and build a culture of transparently presenting any issue, no matter the size, may bring short-term challenges, but this is how we put ourselves on the right path to our long-term future,” he added. “By leading with safety, quality and transparency, we will continue to restore our operational and financial strength.”
Boeing shares rose 2.82% in premarket trading immediately following the earnings release, indicating an opening price of $187.50 each.
Boeing’s total order book grew by 224 plans, with just 10 cancellations, during the third quarter, with sales including 150 737 Max planes to European discount airline Ryanair as part of a $40 billion commitment announced to earlier this year and 50 787 Dreamliners to United Airlines UAL amid a massive bet on the strength of the post-pandemic rebound in global travel.
Looking longer term, Ryanair has said it would buy up to 300 737 Max aircraft, which have a list price of around $40 billion if the deal is completed to completion, with deliveries staggered between 2027 and 2033.
The group’s total order book now stands at 5,172 aircraft, the highest since December 2019, ahead of its third quarter results report on October 25.
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