Boeing Shares Slide 9% As 777 Supplier Shortage Disrupts Factory Into 2027
Boeing's 10-Q says a key 777 supplier's parts shortage will disrupt output through the first half of 2027, and 737 stability slips to 2027.
Boeing's 10-Q quarterly report says parts shortages from a key 777 supplier began in the third quarter of 2026 and will keep disrupting factory operations through the first half of 2027. Boeing shares were at $170.75 in Tuesday trading, down 9.33% from the prior close.
A shortage that spreads to tankers
The disruption is producing abnormal production costs, which Boeing expenses as incurred and expects to continue until 777 production returns to normal. The same supplier shortages are also hitting the KC-46A Tanker and the 777 Freighter, the filing says.
The prior quarter's 10-Q carried no such disruption language. Boeing says the 777 and 777X programs have near break-even gross margins as of September 30, 2026.
737 and 787 ramps move out
Boeing now expects to stabilize 737 production at 47 per month in 2027. After demonstrating stability at that rate for a period, it plans to go to 52. Boeing also postponed 787 increases: the next move above eight per month is now set for December 2026.
The company said the delays are adversely affecting its financial position, results and cash flows. Commercial Airplanes lost $697 million from operations in the quarter, against a $5,353 million loss a year earlier that included a 777X charge. Boeing said in October it achieved certification of the 737-10.
Defense earnings get a $252 million lift
Boeing, which builds commercial jets, defense systems and satellites, and services them, saw Defense, Space & Security earnings from operations reach $492 million in the quarter, up from $114 million a year earlier. A $252 million gain on the sale of an equity method investment drove most of the $378 million increase. Boeing's earnings release attributes the gain to the HRL Laboratories sale.
VC-25B Air Force One losses of $312 million feed into the nine-month catch-up adjustment.
Boeing's third-quarter net loss was $116 million, or $0.26 a share, against $5,339 million a year earlier. Revenue was $24,188 million. The company reported operating cash flow of $1.5 billion.
The 10-Q says government departments and agencies are funded through December 11, 2026, the same month Boeing plans the next 787 rate increase.
Sources
- 10-Q Filing — Boeing (BA) — SEC EDGAR
- 10-Q Filing — Boeing (BA), Q2 FY2026 filed 2026-07-28 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, a202609sep308kprex991.htm) — Boeing, filed 2026-10-27 — SEC EDGAR
- Boeing (BA) Q3 2026 earnings — CNBC
- Boeing Company - Boeing Reports Third Quarter Results – Company Announcement - FT.com — Financial Times
- Boeing Down Nearly 8%, on Pace for Largest Percent Decrease Since April 2025 — Data Talk — morningstar.com
- Boeing Posts $116 Million Loss as Revenue Rises - WSJ — The Wall Street Journal
- Boeing shares plunge on slower-than-expected 737 production, weaker free cash flow outlook - CNA — channelnewsasia.com
