Boeing (BA) Stock: Plunges 9.55% Despite $24.2 Billion Q3 Revenue and Record Backlog

TLDR

• Boeing (BA) stock sinks 9.55% even as quarterly revenue reaches $24.2 billion.
• Record $745 billion backlog fails to lift Boeing shares after Q3 earnings report.
• Boeing free cash flow climbs to $464 million from $238 million a year earlier.
• Commercial Airplanes posts a $697 million loss despite delivering 161 jets.
• Boeing defense revenue grows 15% as Global Services maintains strong margins.

Boeing (BA) stock plunged 9.55% to $170.32, losing $17.99 despite reporting $24.2 billion in third-quarter revenue. Heavy late-morning selling pushed shares below their previous close of $188.31 before prices stabilized near session lows. Meanwhile, Boeing reported positive operating cash flow and a record $745 billion backlog, highlighting progress across its major businesses.

The Boeing Company, BA

Boeing Reports $24.2 Billion Revenue and Improved Cash Flow

Boeing reported third-quarter revenue of $24.2 billion, supported by higher defense and services activity despite weaker commercial aircraft delivery mix. The company recorded a GAAP loss of $0.26 per share and an adjusted core loss of $0.34 per share. However, stronger operating cash flow reflected improved working capital timing and ongoing business activity.

Operating cash flow reached $1.5 billion, compared with $1.12 billion during the corresponding quarter in 2025. Meanwhile, free cash flow increased to $464 million from $238 million, despite higher spending on property and equipment. Boeing also made approximately $700 million in Department of Justice settlement payments during the quarter.

The company ended September with $20.7 billion in cash and marketable securities, up from $20 billion in June. Consolidated debt remained unchanged at $45.9 billion, while Boeing maintained $10 billion in unused credit facilities. These figures reflected stronger quarterly liquidity, although debt continued to exceed available cash and investments.

Boeing Commercial Airplanes Revenue Falls Despite Higher Deliveries

Boeing Commercial Airplanes generated $10.7 billion in revenue, representing a 3% decline from the corresponding quarter last year. Aircraft deliveries increased slightly to 161 units from 160, while the segment recorded a $697 million operating loss. However, its operating margin improved significantly to negative 6.5%, compared with negative 48.3% a year earlier.

Higher supply chain expenses and planned production adjustments continued to affect commercial aircraft profitability during the quarter. Meanwhile, Boeing advanced its 737 production program toward a stable monthly output of 47 aircraft. The company also maintained 787 production at eight aircraft monthly and targeted initial 777X deliveries in 2027.

Commercial Airplanes secured 300 net orders, including agreements involving Turkish Airlines, Ethiopian Airlines, and Lufthansa. Consequently, the division’s backlog exceeded 6,300 aircraft, representing a record value of $612 billion. Boeing also reported certification progress for its 737-7 and 737-10 aircraft, supporting its production plans.

Boeing Defense and Global Services Drive Growth as Backlog Hits Record

Boeing Defense, Space & Security generated $7.9 billion in quarterly revenue, marking a 15% annual increase. Operating earnings reached $492 million, compared with $114 million last year, while operating margins improved to 6.2%. However, those results included a $252 million gain from the sale of HRL Laboratories.

The defense division secured a Navy fighter development selection and a seven-year contract supporting PAC-3 Seeker production. Meanwhile, its backlog reached a record $101 billion, with international customers accounting for 23% of orders. Boeing Global Services also increased revenue by 4% to $5.6 billion, supported by higher business volume.

Global Services generated $1.02 billion in operating earnings and achieved an 18.3% operating margin during the quarter. The division also secured an Army Apache maintenance contract and ended September with a $33 billion backlog. Overall, Boeing’s results showed stronger cash generation and defense earnings, while commercial aircraft costs continued to pressure profitability.

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