Boeing Shares Drop 10% on Delivery Outlook Cut

Boeing's stock plummeted in late morning trading, marking its worst single-day decline in 18 months, following a revised outlook that highlights production hurdles. The company now expects to deliver around 90 787 Dreamliners, far below its previous guidance, and will miss its full-year 737 production target. Despite stronger-than-expected cash generation and revenue, the revised forecast overshadowed these results, leading to a 10% drop in shares. CEO Kelly Ortberg acknowledged the progress is not always linear but expressed confidence in the company's trajectory. The core loss per share widened to 34 cents, worse than the Bloomberg Consensus estimate of 21 cents, while commercial airplanes revenue declined year-on-year. Analysts noted persistent losses in Boeing's commercial aircraft business and uncertainty around its cash-flow recovery, despite improved cash flow in the quarter. JPMorgan's Seth Seifman highlighted margin misses due to rising costs, while Jefferies' Sheila Kahyaoglu pointed to the failure to reaffirm 2026 free-cash-flow guidance. RBC's Kenneth Herbert emphasized weaker-than-expected core earnings, and Bloomberg Intelligence's George Ferguson noted the $1.5 billion in operating cash flow as a buffer against slow delivery improvements. Boeing's challenges come as it faces pressure from rival Airbus, which has outpaced it in aircraft deliveries, though Airbus has also faced its own supply issues this year.