Boeing shares fell after Wednesday morning’s chaotic third-quarter announcement. Despite higher-than-expected losses, business execution has improved and the company is well-positioned to deliver more aircraft in the future. That would increase free cash flow, which is the ultimate driver of stock prices. Revenue for the third quarter ended Sept. 30 rose 30% from a year earlier to $23.27 billion, beating expectations of $21.97 billion, according to market data service LSEG. Loss per share narrowed year-over-year, but was still $7.47. This was far worse than the $4.59 per share loss that the Street had expected. Analysts had expected significant costs associated with delays to the 777X program. However, the actual charge of $4.9 billion was larger than expected, and Boeing’s third-quarter loss increased by $6.45 per share. BA YTD Mountain Boeing YTD Shares of Boeing Co., the name of the club and one of the 30 stocks that make up the Dow Jones Industrial Average, fell 4%. But the stock is still up more than 20% year-to-date, as Boeing’s planes help countries reduce their trade deficits with the United States. Boeing has won a number of international deals since President Donald Trump began negotiating and striking deals with countries to reduce tariffs. Trade policy is a key pillar of our Boeing investment thesis, which we launched last month. We are making additional small purchases to increase our position by a large amount. Jim Cramer said without the restrictions, the club would have been a buyer in Wednesday’s plunge. Conclusion Large losses and expenses per share associated with core programs are never a good thing. But what we’re seeing overall is an improvement in operational performance. In addition to operating losses, the biggest factor was fees, which we warned our members about before the release. Here’s how the charges came about: The latest version of the 777 wide-body jet, the 777X, still hasn’t received regulatory approval six years after its first test flight. Management said the 777X was progressing well in subsequent flight tests, but the expected schedule for first delivery was pushed back to 2027 because the certification process took longer than expected. However, there are many positive aspects to these challenges. Free cash flow is at the heart of many investors’ valuation of Boeing. We got a very pleasant surprise here, as the company reported positive free cash flow for the first time since 2023. The Street had expected a negative number. Free cash flow was not expected to turn positive until the fourth quarter. So, it was a little earlier than planned. Reasons to Own Boeing has improved execution and is able to increase production on key programs, which should lead to higher monthly deliveries and free cash flow, the most important financial metric for investors when evaluating a stock. Boeing also benefits from U.S. trade policy. Competitor: Airbus Latest Purchase: October 10, 2025 Start: September 8, 2025 Commercial aircraft deliveries, which are driving free cash flow, were also a bright spot, increasing nearly 38% year over year, the highest quarterly total since 2018. Even better, deliveries should continue to improve given that the Federal Aviation Administration gave Boeing permission to ramp up 737 production in October after the end of the reported third quarter. The rate has increased from the previous rate of 38 per month to 42 per month. Boeing’s order backlog also improved, reaching $636 billion at the end of the quarter, with nearly $600 billion of that in contract amounts. The backlog also includes more than 5,900 commercial aircraft worth approximately $535 billion. The faster Boeing can deliver aircraft, the faster it can turn that backlog into actual sales, further improving its free cash flow. We are seeing signs of improved execution given better-than-expected deliveries, increased monthly production rates going forward, and positive free cash flow ahead of schedule. While aiming to increase overall production, management intends to do so in a disciplined manner. To avoid problems, we plan to increase slowly and incrementally over time, guided by key performance indicators (KPIs). For these reasons, we want to move beyond the heavy losses of the third quarter and change and focus on the positives. We reiterate our rating of 1, the equivalent of Buy, and our $275 per share price target. Segment Commentary Third quarter commercial aircraft sales increased 49% to $11.01 billion. In a conference call following the announcement, CEO Kelly Ortberg said Boeing will act on KPIs, but the company expects 787 production to increase by eight planes per month “in the near future.” Regarding the 777X program, Ortberg said, “We have accumulated more than 4,000 flight hours, which is more than double the normal flight test program, and so far there have been no major technical issues with the airframe or engine. During the quarter, we completed critical testing of the airplane’s brakes, engine, takeoff performance, and aerodynamic performance. However, a significant portion of the flight test certification program remains.” “This is obviously a disappointment, but we need more time to complete the certification process,” he added. ”[But] “Defense, Space and Security sales increased nearly 25% to $6.9 billion. This segment develops and produces manned and unmanned military aircraft and weapons systems. Sales and operating margin performance reflects stable operational results and The sector’s backlog increased to $76 billion as orders worth $9 billion were recorded during the quarter, an increase from the previous quarter. It was $74 billion. The segment’s sales serve commercial and defense customers, and sales growth increased to $25 billion year-over-year, reflecting an $8 billion backlog. Charitable Trust is a long BA. See here for a complete list of stocks. ) Subscribers to Jim Cramer’s CNBC Investing Club receive trade alerts before Jim buys or sells stocks in his charitable trust portfolio. If Jim talks about stocks on CNBC TV, he will wait 72 hours after issuing a trade alert before executing a trade. Club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer, and no fiduciary duty or obligation exists as a result of receipt of information provided in connection with an investment club. A specific result or benefit is guaranteed.
