Boeing Turnaround Shows Progress, but Commercial Unit Sputters

By Drew FitzGerald

Boeing posted another quarterly loss after higher costs ate into profits within its commercial-jet business.

Heavy investments in new airplane production, a roughly $700 million payment to cover a Justice Department settlement and other accounting charges also crimped profits during the September quarter. But the plane maker continued generating cash, a major test of its turnaround.

Boeing booked an overall loss of $116 million, compared with a $5.34 billion loss a year earlier. On a per-share basis, the loss shrank to 26 cents from $7.14 a year earlier.

Total revenue grew about 4% to $24.19 billion, partly driven by stronger sales from its defense, space and security business.

Revenue from Boeing's core commercial segment decreased in the third quarter while its operating margin remained negative. The company blamed a less-favorable mix of aircraft deliveries and higher projected supply-chain costs for the slip.

Speeding up jet production has been a top priority for Boeing executives since federal regulators cracked down on the aerospace giant after persistent quality control problems. The manufacturer has since picked up the pace by convincing U.S. authorities it can safely increase production.

Boeing said Tuesday that its 737 program "continues to progress toward stabilized production" at 47 jets a month. Chief Executive Kelly Ortberg has said the lines won't run faster until they can maintain that steady rate sustainably.

The latest period included payments to the Justice Department for its role in two fatal 737 MAX crashes in 2018 and 2019. The company through a settlement admitted to conspiracy to obstruct regulators' operations but avoided more serious prosecution over safety lapses.

The quarterly loss overshadowed a string of recent wins at the U.S. plane maker in recent months. The Federal Aviation Administration approved its years-long effort to sell two more variants of its workhorse 737 MAX family, giving the business a set of four single-aisle jets to offer airlines.

Boeing last month clinched an arrangement to make the U.S. Navy's next-generation fighter jet in the years ahead, building on a massive contract it had won in 2025 for Air Force fighters.

Write to Drew FitzGerald at drew.fitzgerald@wsj.com

(END) Dow Jones Newswires

October 27, 2026 08:01 ET (12:01 GMT)