Boeing third-quarter operating earnings of $354 million as revenue rises 4%

The Boeing Company (BA) said Tuesday it posted earnings from operations of $354 million in the third quarter of 2026, against an operating loss of $4.8 billion a year earlier. Revenue rose 4% to $24.2 billion from $23.3 billion, the company said in a regulatory filing.

Here's how the company did:

• Revenue: $24.19 billion vs. $23.27 billion a year earlier
• Diluted loss per share (GAAP): $0.26 vs. $7.14 a year earlier
• Core loss per share (non-GAAP): $0.34 vs. $7.47 a year earlier

Net loss was $116 million, compared with $5.3 billion a year earlier. Diluted loss per share was $0.26, against $7.14.

Core operating earnings, a non-GAAP measure, were $204 million, compared with a core operating loss of $5.0 billion a year earlier. Core operating earnings exclude the FAS/CAS service cost adjustment, which is the difference between pension and postretirement service costs calculated under GAAP and costs allocated to the business segments.

Operating cash flow was $1.5 billion, up 33% from $1.1 billion a year earlier. Free cash flow, or operating cash flow less capital spending, was $464 million, compared with $238 million.

The company said working capital timing partly offset Department of Justice settlement payments of approximately $0.7 billion. Capital spending rose to $1.0 billion from $885 million, mainly for investments at its Charleston and St. Louis sites.

“Recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy’s sixth-generation fighter aircraft, are important steps as we continue building on our progress,” Boeing president and chief executive officer Kelly Ortberg said. “But we are not done. We remain focused on safety and quality as we redouble our efforts on Lean and disciplined execution to deliver on our commitments and build the durable performance our stakeholders expect.”

Commercial Airplanes

Commercial Airplanes revenue fell 3% to $10.7 billion from $11.1 billion a year earlier. The segment posted an operating loss of $697 million, compared with $5.4 billion a year earlier.

The company said the result primarily reflected less favorable delivery mix, higher projected costs tied to future production rate adjustments and higher estimated supply chain costs. The third quarter of 2025 included a charge on the 777X program.

The unit delivered 161 airplanes, up 1% from 160 a year earlier. Through nine months, deliveries totaled 475, compared with 440.

The 737 program continues to progress toward stabilized production of 47 per month. The 787 program remains stable at a production rate of 8 per month, and the 777X is on track for first delivery in 2027, the company said.

The segment booked 300 net orders, including orders from Turkish Airlines, Ethiopian Airlines and Lufthansa. Its backlog included more than 6,300 airplanes valued at a record $612 billion.

Defense, Space & Security

Defense, Space & Security revenue rose 15% to $7.9 billion from $6.9 billion. Earnings from operations were $492 million, compared with $114 million a year earlier.

The segment’s operating margin of 6.2% primarily reflects a $252 million gain on the HRL Laboratories sale and improved operational performance, the company said.

The U.S. Navy selected the segment for a contract to design, build and deliver the F/A-XX next-generation fighter aircraft. The company said the order is not included in backlog pending completion of the source selection and evaluation review process.

The segment also received a seven-year contract award to expand PAC-3 Seeker production. Its backlog grew to a record $101 billion, and 23% represents orders from customers outside the U.S.

Global Services

Global Services revenue rose 4% to $5.6 billion. Earnings from operations increased 9% to $1.0 billion from $938 million, and the operating margin was 18.3%.

The unit received a U.S. Army award to provide maintenance services for the AH-64 Apache fleet. Its backlog ended the quarter at $33 billion.

Cash, debt and nine-month results

Cash and investments in marketable securities totaled $20.7 billion, compared with $20.0 billion at the start of the quarter. Consolidated debt was $45.9 billion, the same as at the end of the second quarter.

The company maintains $10.0 billion of credit facilities, which remain undrawn.

For the first nine months, revenue was $71.0 billion, up 8% from $65.5 billion. The net loss narrowed to $551 million from $5.98 billion, and operating cash flow was $2.7 billion, compared with a negative $266 million a year earlier.

Total company backlog was a record $745 billion at quarter end, up from $682 billion on Dec. 31, 2025.

The release did not include a full-year financial outlook.