Program and production
Boeing 737 rate 52 slips to 2027 as backlog tops $745 billion
Boeing's third quarter results confirmed a record $745 billion backlog, but shares fell about 10 percent after the company pushed its next 737 production step, rate 52, into the second half of 2027.
Boeing reported third quarter financial results on 27 October 2026, the earnings call this site's 13 October delivery story had flagged as pending. Revenue came to 24.2 billion dollars, up 4 percent, with a GAAP loss of 0.26 dollars per share. Total company backlog reached a record 745 billion dollars, including more than 6,300 commercial airplanes, up from 715 billion dollars in the second quarter. Commercial Airplanes posted an operating loss of 697 million dollars, far narrower than the 5.35 billion dollar loss a year earlier that had included a reach forward charge on the 777X programme. Operating cash flow was 1.5 billion dollars and free cash flow was 0.5 billion dollars.
The backlog record was not what moved the stock. Chief executive Kelly Ortberg confirmed that Boeing still has not demonstrated stability at 47 single aisle aircraft a month, the rate the FAA cleared in May, and that the next step up to rate 52 is now targeted for the second half of 2027 rather than sometime in 2027 as previously guided. Shares fell about 10 percent on the day, which analysts tied to the free cash flow outlook and the delayed ramp rather than to the backlog figure.
In plain terms
A production rate is how many aircraft a factory builds in a month. Backlog is how many unbuilt aircraft customers have already ordered. A record backlog with a slipping rate means the order book is getting longer relative to how fast Boeing can actually build through it, which is why investors reacted to the rate news rather than the backlog news.
Ortberg called the quarter's certification wins, the 737-7 in August and the 737-10 on 20 October, important steps, but said the company is "not finished." Nothing in the results changes the MAX 7 and MAX 10 first delivery target of 2027 already reported on this site.
Sources
- Boeing, "Boeing Reports Third Quarter Results", 27 October 2026. https://boeing.mediaroom.com/2026-10-27-Boeing-Reports-Third-Quarter-Results
- U.S. Securities and Exchange Commission, Boeing Form 10-Q for the quarter ended 30 September 2026, filed 27 October 2026. https://www.sec.gov/Archives/edgar/data/0000012927/000162828026067508/ba-20260930.htm
- The Motley Fool, "Boeing's Backlog Grew to $745 Billion. The Question Remains How Fast It Can Fulfill It", 27 October 2026. https://www.fool.com/investing/2026/10/27/boeing-s-backlog-grew-to-usd745-billion-the-question-remains-how-fast-it-can-fulfill-it/
- Quartz, "Boeing stock sinks 10% on 737 Max ramp delay in Q3 2026 earnings", 27 October 2026. https://qz.com/boeing-stock-737-max-production-ramp-delay-102726