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Boeing (BA) is trading lower following its Q3 report this morning. As expected, the company posted another large loss—its 17th consecutive quarterly loss—which was larger than expected due to a $4.9 bln non-cash charge. However, revenue rose a robust 30.4% yr/yr to $23.27 bln, topping expectations and was fueled by 160 commercial deliveries. This marked Boeing's third straight quarter of yr/yr revenue growth after four quarters of declines, as deliveries continue to ramp.

• Boeing achieved positive free cash flow for the first time since 4Q23, exceeding expectations and marking a key milestone for the company.
• The 737 program continues to gain traction, with the FAA allowing production to increase to 42/month from 38/month. While the ramp will take time, it signals improving stability and regulatory confidence.
• The 787 program remains on track, maintaining 7/month production and targeting 8/month soon. Boeing is also expanding its South Carolina site to meet strong global demand.
• The 777X program remains the main disappointment, as certification has been delayed again, pushing first delivery to 2027. While no major technical issues have emerged, the lengthy certification process continues to frustrate investors.
• The Defense, Space & Security (DSS) segment performed well, with revenue up 25% yr/yr to $6.90 bln and backlog rising to $76 bln, including 20% international orders.

Briefing.com Analyst Insight:

Boeing's Q3 results were a mix of clear progress and lingering challenges. The solid revenue growth, improving production cadence, and return to positive free cash flow are all steps in the right direction, signaling operational momentum and better execution. However, the repeated 777X delays and persistent losses keep the recovery story incomplete. We see Boeing gradually regaining altitude, but turbulence remains ahead as it works to rebuild investor trust, stabilize cash flow, and prove that its turnaround efforts can translate into consistent profitability.