By Karl Sinclair

Oct. 29, 2025, © Leeham News: The Boeing Company (BA) took another charge in the third quarter, to the tune of $4.9bn, on the struggling 777X program–which has yet to deliver a single aircraft to a customer.

Boeing released its 3Q2025 results, following the positive sentiment surrounding the second-quarter results. Despite posting the first positive Free Cash Flow (FCF) since 2023, investors drove shares down nearly 5% by midday.

Boeing’s CEO Kelly Ortberg placed the blame directly on Boeing’s doorstep when he said on the financial network CNBC Wednesday morning, “This is something (the 777X/737 Max certification) that was driven by our inability to get through the certification process as fast as we anticipated.”

Entry into service (EIS) for the 777X is now expected in 2027, rather than next year. The MAX 7 and MAX 10 are still expected to be certified next year.

Third-quarter losses from operations at Boeing Commercial Aircraft (BCA) totaled $5.353bn, deepening from the 2024 results, when the division lost $4.021bn.

Free Cash Flow was $223m for the quarter and ($2.252bn) for the first nine months of 2025. Operating cash flow was $1.123bn for the quarter, ($266m) for the year, driven by higher commercial deliveries.

Corporate net losses for the quarter totaled $5.339bn, an improvement over 2024 results, when the company lost $6.174bn.

Company-Wide Results

Cash and cash equivalents, along with short-term and other investments, dropped to a combined $22.984bn at the end of the quarter. This declined from the start of the year, when it totaled $26.282bn, a difference of $3.298bn.

Consolidated debt was $53.353bn, down modestly from $53.864bn, a $511m change.

Boeing reported 3Q2025 results of $23.270bn in total sales and a net loss of $5.339bn, along with an operating margin of (20.5%). Net losses for the year totaled $5.982bn, on company revenues of $65.515bn.

Newly minted Executive Vice-President and CFO Jay Malave expects a cash burn in the region of $2.5bn for 2025. Regarding the 777X future liquidity usage, he said, “[Boeing] expects that starting in 2029, neutrality will go to a benefit positive free cash flow for the program. The next year is gonna be a little bit heavy, but it’ll continue to improve from year over year from that point.”

Cash burn for 2026 due to the 777X program is expected to exceed previously estimated levels of $2bn.

The Boeing revenue figures are approaching the numbers it used to generate before all the setbacks it suffered, starting in 2019.

If the company matches 3Q2025 revenues of ~$25bn in 4Q2025, it will have topped the $90bn mark for the year, which begins to approach Boeing’s historical revenue range.

For comparison’s sake, in Boeing’s record-setting year of 2018, it posted full-year revenues of $101.127bn and had net earnings of $10.46bn.

This would leave the FY2025 results some ~$10bn shy of its previously reported record revenues and earnings–the difference being, of course, that earnings will fall far short of what Boeing had achieved that year.

Boeing Commercial

The division generated $11.094bn in revenues for the quarter, on deliveries of 160 aircraft. This is an improvement over 2024, when 116 jets were delivered and $7.443bn in sales were recorded. A strike from September 12, 2024, into mid-November shut down BCA and all deliveries. Losses soared, and Boeing went to the equity and debt markets to raise $24bn to avoid running out of cash.

For the first nine months of the year, BCA delivered 440 aircraft to customers, generating $30.115bn in revenue. Operationally, it has cost the company $6.447bn to do so.

While an increase in deliveries usually results in an improvement in the bottom line, this was not the case in 2024, when BCA lost just $5.879bn on 291 deliveries.

Entry into service of the 777X has now been pushed back to 2027, as previously reported by launch customer Lufthansa and confirmed by Boeing in this filing.

Launched in 2013, the aircraft was initially scheduled to enter service in 2020. Fourteen years later, the program has cost the company dearly.

While Boeing describes the current $4.9bn write-off as a non-cash charge, that description is misleading.

Yes, the current entry does not involve any cash accounts, but this is simply because those amounts have already been spent in previous periods, as LNA has reported earlier. Boeing has just waited until now to record them on the Consolidated Statement of Operations.

Total write-offs for the 777X program have now hit $15.730bn, a truly stunning amount, given that the company has no revenues on the type, to show for it.

The program will easily eclipse the $20bn loss mark, as 2026 costs the company more cash flow.

BCA still has a mild inventory build-up, with five 737 MAX and 10 787 Dreamliners awaiting delivery, which should be completed in 2026.

In a spot of good news, Boeing reported that it had secured a production increase on the 737 MAX program to 42/mo, up from the current 38/mo.

“We are, as we speak, rolling at the 42 rate,” said Ortberg. He continued, “…we’ll go to the next, (which) would be the 47. I mentioned in the prepared remarks, not earlier than six months, because we need time to go to the new rate, demonstrate stability.”

The 787 program continues to work toward a stabilized production rate of 8/mo, and expansion work on the Charleston (SC) production facilities is progressing.

Boeing is investing capital in the FAL in South Carolina to double its footprint. It can reach 10/mo with the current infrastructure, but has its sights set on a production rate in the teens by 2028.

Certification Issues

On the progress being made on the certification front, Ortberg said, “The issue is solely around getting the certification work complete. We had anticipated getting TIA approval. That’s what’s needed, actually, to get CERP credit when we fly those particular tests. We have not been able to achieve the certification credit. And that’s because we haven’t gotten the TIA approval.”

Boeing underestimated the effort required to obtain the Type Inspection Authorization (TIA) certificate and lacked a realistic plan to address the issue.

At the same time, Boeing reported that it had once again secured what it calls “limited delegation authority” from the FAA. Ortberg said, “Also in the quarter, the FAA announced it will allow delegation to Boeing to issue airworthiness certificates for some 737 MAX and 787 airplanes.”

Other Segment Results

With most of the focus on BCA and the 777X woes, both Boeing Defense, Space & Security (BDS) and Boeing Global Services (BGS) had less spotlight shone on them. BDS reported relatively modest earnings of $114m on revenues of $6.902bn for the quarter.

While the results may seem relatively benign, given the division’s history, this is a welcome bit of good news, as the segment continues to post positive results.

For the first nine months of 2025, BDS earned $379m on sales of $19.817bn. This is up over 2024, when it lost ($3.146bn) on revenues of $18.507bn.

While Defense still must deal with a strike by the IAM at its St. Louis (MO) production facility, the potential for a catastrophic financial outcome for the division is not nearly as high as it was during the BCA strike.

BDS also secured a $2.8bn contract from the US Space Force, bolstering its cash position with additional deposits.

Boeing Global Services (BGS) continued its winning ways, as it posted a $934m gain on sales of $5.370bn for the quarter. Year-over-year, this is up 12% on earnings ($834m in 2024) and 10% on revenues ($4.901bn for the same period). For the first nine months of 2025, total revenues are up 6% (YoY) to $14.714bn, and earnings jumped 12% to $2.93bn.

M & A details

In the final period of the year, Boeing is expected to conduct some business on the Merger & Acquisitions (M&A) front. Plans are still in place to acquire the majority parts of Spirit Aerosystems of Wichita (KS), a former Boeing division. This transaction is expected to cost the company some $4bn in stock and to assume ~$4.3bn in debt onto the Boeing balance sheet.

There were scant details revealed regarding the upcoming sale of Jeppesen, which is still slated to conclude in 4Q2025. Spinning off that asset will net Boeing around $10bn.

The net financial effect to Boeing will leave them with some $28bn in cash and equivalents by year’s end, according to CFO Maleve.

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Boeing CEO Kelly Ortberg says one element of the company’s considerations before it launches a new airplane is Boeing’s own recovery. Boeing, too, must be ready—and there is a long way to go before it is.

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