Aerospace giant Boeing closed the third quarter of fiscal year 2025 with a substantial loss, primarily due to a massive increase in financial charges related to its 777X long-range aircraft program. The company reported a loss of $7,14 per share on a standard accounting basis and $7,47 per share on an adjusted basis on October 29, 2025. These figures were significantly impacted by a one-time pre-tax charge of $4,9 billion for the 777X program, which increased the loss per share by approximately $6,45.
This exceptionally high figure exceeded analysts' estimates, which at the beginning of October 2025 had projected charges between $2,5 billion and $4 billion. The revised assessment of the 777X timeline, which now anticipates the first delivery of the 777-9 in 2027, is forcing the company to make this significant accounting correction. The program, launched in 2013, has thus already missed its original planned delivery target of 2020 by an estimated seven years. Despite these setbacks, Boeing CEO Kelly Ortberg emphasized that the aircraft continues to perform well in flight tests. He stressed that the company is focused on completing the development programs and stabilizing operations in order to fully restore the company's performance and regain the confidence of all stakeholders.
Background to the 777X delays: Cumulative costs and certification bottlenecks
The latest postponement of 777X deliveries to 2027, the sixth delay since the program's inception, highlights the aircraft manufacturer's ongoing difficulties, particularly with certification. The reasons for this renewed delay lie primarily in the complex and lengthy regulatory approval processes by the Federal Aviation Administration (FAA), as well as previous technical challenges and supply chain issues. The FAA has previously identified "design maturity" deficiencies and reported an uncontrolled pitching event during a test flight in 2020.
The cumulative financial burden on the 777X program is now estimated to exceed $15 billion. This substantial sum is attributable to the so-called "abnormal costs" resulting from repeated delays and the associated additional expenses. While the now-recorded one-time charge of $4,9 billion is a non-cash item on the balance sheet, as the expenditure was incurred in previous periods, it reflects a real and significant loss that extends over the entire lifespan of the program and severely impacts its profitability.
The market reacted cautiously to the news of the unscheduled charge. Analysts expressed concern about further potential surprises, while the company's stock declined in early trading. Despite concerns about Boeing's debt burden, the overall financial impact is not considered an immediate threat to its survival, but it does pose a significant obstacle to a rapid recovery in profitability.
Operational bright spots: Increasing deliveries and positive cash flow
Despite the substantial loss on its balance sheet, the report for the third quarter of 2025 also shows signs of an operational recovery, particularly in the commercial and services segments. The company's total revenue rose to $23,3 billion in the third quarter, exceeding the second quarter's revenue of $22,7 billion. Notably, Boeing generated positive operating cash flow of $1,1 billion and positive free cash flow of $0,2 billion for the first time since the end of 2023. The company emphasized that the positive free cash flow was an important milestone in repairing its balance sheet, even though it was relatively modest and significantly influenced by customer payments received.
The Commercial Airplanes division saw revenue increase to $11,1 billion. This was primarily driven by a surge in aircraft deliveries, with 160 units representing the highest quarterly result since 2018. The division recorded 161 net orders, including 50 787 Dreamliners for Turkish Airlines and 30 737-8 aircraft for the Norwegian Group. The company's total order backlog stood at $636 billion at the end of the quarter, of which $535 billion was attributable to the Commercial Airplanes segment, comprising over 5.900 aircraft.
A key operational achievement was the Federal Aviation Administration's (FAA) approval in October 2025 to increase the production limit for the 737 MAX from 38 to 42 aircraft per month. This phased increase is intended to lay the foundation for future revenue growth. In parallel, production of the 787 program stabilized at seven aircraft per month, accompanied by investments to expand operations in South Carolina.
Strengthening the defense and service segments
Business units less affected by civilian development problems contributed to stabilizing the company's performance. The Defense, Space & Security division generated $6,9 billion in revenue and an operating margin of 1,7 percent in the third quarter. According to the company, this indicates "stabilizing operating performance and higher volume."
Key contracts won during the quarter included a U.S. Space Force contract to enhance strategic satellite communications capabilities and a partnership with the Royal Australian Air Force to demonstrate the autonomous operational capabilities of the MQ-28 Ghost Bat. The defense division's order backlog increased to $76 billion, 20 percent of which was with international customers. The Global Services segment contributed $5,4 billion to revenue, driven by higher volume. This segment boasted a comparatively high operating margin of 17,5 percent, primarily due to favorable commercial volume and product mix. Among the most significant contracts won during the quarter were a U.S. Navy contract to repair F/A-18 landing gear and a strategic cooperation agreement with Korean Air to further develop predictive maintenance analytics. The positive performance in the services sector underscores this segment's role as a stable source of revenue in an otherwise risky business environment.
and 