Boeing Stock Falls After Earnings Miss and 777x Charge

Through September, Boeing delivered 440 commercial jets and took in orders for 821 aircraft. (GIUSEPPE CACACE/AFP via Getty Images)

Key Points

• Boeing reports a third-quarter per-share loss of $7.14 from sales of $23.3 billion. Wall Street was looking for a loss of $5 from sales of $22.6 billion.
• The 777x twin-aisle jet, launched in 2013, faces further certification delays, potentially pushing commercial deliveries into 2027.
• The aerospace company took a charge of $4.9 billion related to its 777x jet.

Boeing stock was lower Wednesday morning on weaker-than-expected third-quarter earnings that were hit by another special charge. Still, investors knew it was coming, and the quarter offered some encouraging signs.

The commercial jet maker reported a third-quarter per-share loss of $7.14 from sales of $23.3 billion. Wall Street was looking for a per-share loss of $5 from sales of $22.6 billion, according to FactSet.

A year ago, in the third quarter of 2024, Boeing reported a $10.44 per-share loss from $17.8 billion in sales. Results then included strike-related expenses and one-time charges.

This quarter, sales rose on higher deliveries. Boeing delivered 160 commercial jets, up from 116 a year ago. Earnings were hit by a $4.9 billion charge related to the 777x program.

Boeing shares dropped 4.4% to $213.58, while the S&P 500 finished flat and the Dow Jones Industrial Average fell 0.2%.

The 777x charge was larger than Wall Street expected. Vertical Research Partners analyst Rob Stallard was looking for a charge in the range of $2.5 billion to $4 billion.

Still, CEO Kelly Ortberg warned of 777x certification delays at a Morgan Stanley conference in September. Commercial deliveries of the new jet could have started in late 2026, but now that might slip into 2027.

The 777x program, Boeing’s newest wide-body jet, was launched in 2013 and still isn’t approved for commercial service. The plane can carry more than 400 passengers in certain cabin configurations. The 777x completed its first flight in 2020, but the certification process has been bogged down, with Boeing facing more regulatory scrutiny after problems with its 737 MAX jets.

Despite the charge, Boeing has started to make progress on turning its operations around, with 737 MAX production rates stabilized at 38 a month. The FAA recently said Boeing could boost that to 42 a month—a sign production quality is improving.

Stallard called the third-quarter results, excluding the charge, “OK” in a Wednesday report, adding that free cash flow was positive for the first time since the fourth quarter of 2023.

What’s more, Boeing’s defense business produced a positive operating profit after reporting a $2.4 billion loss a year ago.

Options markets implied shares will move about 5% up or down on Wednesday following earnings. Boeing stock has moved an average of 3% following the past four quarterly reports. Shares rose twice and fell twice over that span.

Aside from the 777x charge, expectations for Boeing have been running relatively high. Coming into the week, shares were up 25% year to date.

Write to Al Root at allen.root@dowjones.com