Boeing reported third-quarter revenue of $24.19 billion and a sharply narrower net loss Tuesday, but continuing production and cost pressures in its commercial-aircraft business weighed heavily on its shares.
Revenue increased 4% from a year earlier. Boeing reported a GAAP net loss of $116 million, or $0.26 per share, compared with a $5.34 billion loss during the year-earlier quarter. Its non-GAAP core loss was $0.34 per share.
Operating cash flow reached approximately $1.5 billion, while non-GAAP free cash flow was approximately $500 million.
The company’s backlog climbed to a record $745 billion, including more than 6,300 commercial airplanes.
Commercial aircraft nevertheless remained a pressure point as Boeing continued working through production, supply-chain and cost challenges.
The quarter also included significant program milestones. Boeing said the 737-7 achieved amended type certification from the Federal Aviation Administration, while the 737-10 received certification in October. The company was also selected by the U.S. Navy to design and build the F/A-XX next-generation fighter aircraft.
Despite the improvement in several financial measures, Boeing shares fell sharply Tuesday as investors focused on the continuing challenge of translating its enormous order book into consistently profitable aircraft production.
The central issue remains execution. Boeing must stabilize production, manage suppliers and convert its record backlog into deliveries and cash generation while maintaining safety and manufacturing quality.
