In the third quarter, Boeing reported a net loss of $116 million, or 26 cents per share, a significant improvement from a $5.34 billion loss a year earlier. Adjusted for one-time items, the loss was 34 cents per share, worse than the expected 21 cents. Revenue increased by 4% year-over-year to $24.19 billion, surpassing analyst expectations of $23.84 billion.
Notably, Boeing's defense segment saw a 15% revenue increase to $7.94 billion, highlighting its strength in this area. However, the commercial aircraft unit faced challenges, with revenue declining 3% to $10.72 billion and a negative operating margin of 6.5%. The company delivered 161 commercial airplanes, just one more than the previous year.
CEO Kelly Ortberg acknowledged the need for further improvements in production efficiency, particularly for the 737 Max, which is currently produced at a rate of 47 units per month. Boeing is optimistic about increasing production next year, but it faces ongoing pressures from supply chain costs and production rate adjustments. Recent wins include contracts from the U.S.
Navy for a next-generation fighter jet and FAA approvals for the 737 Max 10 and Max 7, which are crucial for the company's recovery as aircraft deliveries are key to revenue realization