Boeing Q3 Earnings Preview: Narrower Loss and Certification
Boeing Q3 earnings due Oct. 27; analysts expect a $0.21 loss on $24.0 billion revenue while 737-10 certification and orders may ease cash-flow strain.
KEY TAKEAWAYS
- Analysts expect about a $0.21-per-share Q3 loss on roughly $24.0 billion of revenue.
- Mid-October 737-10 certification and recent orders could support stronger free cash flow.
- A $700 million DOJ payment and defense charges shape reported liquidity and investor caution.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Boeing Co. (BA) is set to report third-quarter 2026 earnings on October 27, with analysts expecting a loss of about $0.21 per share on roughly $24.0 billion of revenue. Mid-October Federal Aviation Administration (FAA) certification of the 737-10 and recent orders could support the company’s free cash flow outlook.
Earnings and Cash Flow Outlook
Analysts anticipate a significant improvement from the third quarter of 2025, when Boeing posted a $7.47-per-share loss. Management maintains a full-year free cash flow target of $1 billion to $3 billion and has indicated that third-quarter free cash flow will be positive in the low hundreds of millions. This outlook includes a $700 million payment to the Department of Justice. The second quarter of 2026 provides a recent benchmark, with $24.56 billion in revenue, 171 aircraft deliveries, and $631 million in free cash flow. These figures offer a baseline to assess whether the upcoming results signal operational progress or ongoing challenges, especially given legal cash outflows and defense-related charges.
Certification, Orders, and Production Progress
The FAA certified the 737-10 around October 17, 2026, a regulatory milestone linked in some reports to unlocking 1,555 orders. Boeing’s backlog stood at approximately $715 billion after the second quarter, underpinning revenue and delivery expectations for years. A key operational focus remains on increasing 737 production to 47 aircraft per month, a critical step for converting backlog into cash. On October 23, Allegiant exercised options for six 737 MAX jets in a deal valued at more than $720 million. While the expected narrower loss may ease near-term concerns, legal payments, defense charges, and production pace will influence investor sentiment. Certification gains and a substantial backlog provide a path to stronger cash flow if deliveries accelerate.
