BA Boeing 10-Q 2026-09-30 section summaries

Boeing (BA) — Part I, Item 1

Financial performance

For the nine months ended September 30, 2026, revenue increased 8.3% to $70.965B from $65.515B; Q3 revenue rose 3.9% to $24.188B from $23.270B. Product sales were $61.117B from $54.911B for 9M and $20.753B from $19.642B in Q3. Services revenue declined to $9.848B from $10.604B for 9M and $3.435B from $3.628B in Q3.

Costs and expenses were $63.838B for 9M, versus $63.038B, and $22.021B in Q3, versus $25.645B. Operating earnings improved to $958M for 9M from a $4.496B loss, and to $354M in Q3 from a $4.781B loss. Boeing still reported a net loss of $551M for 9M, versus $5.982B, and $116M in Q3, versus $5.339B. Net loss attributable to common shareholders was $823M for 9M from $6.244B and $203M in Q3 from $5.424B. Loss per share improved to $1.04 for 9M from $8.25 and $0.26 in Q3 from $7.14. Substantial interest and debt expense was $1.789B for 9M from $2.112B and $573M in Q3 from $694M.

Segment results

Commercial Airplanes remained loss-making, while Defense, Space & Security and Global Services improved their Q3 operating results. For 9M, Commercial Airplanes revenue was $31.674B from $30.115B and operating loss $1.582B from $6.447B; Defense, Space & Security revenue was $23.017B from $19.817B and operating earnings $710M from $379M; Global Services revenue was $16.288B from $15.714B and operating earnings $2.958B from $2.930B. The 9M reconciliation included $(1.588)B in unallocated items from $(2.145)B, and a $460M FAS/CAS adjustment from $787M.

Long-term contract cumulative catch-up adjustments reduced operating earnings by $486M for 9M from $544M and $105M in Q3 from $206M. By contrast, 777X and 767 reach-forward losses fell to $86M for 9M from $5.140B, a major factor in the year-over-year improvement.

Cash flow, balance sheet and liquidity

Operating cash flow was $2.681B for 9M, versus cash use of $266M; capital expenditures were $3.040B, versus $1.986B, leaving operating cash flow less capex of $(359)M versus $(2.252)B. Cash generation benefited from an $8.113B increase in advances and progress billings, compared with a $2.065B decrease, while inventories used $6.733B of cash, versus $116M. Boeing repaid $8.415B of debt during 9M. Cash and cash equivalents were $9.498B, versus $6.173B a year earlier; short-term and other investments were $11.216B, down from $18.479B at year-end 2025.

At September 30, total assets were $170.739B, total equity $6.562B, goodwill $17.778B, and acquired intangible assets, net, $1.279B. Equity less goodwill and acquired intangible assets was negative $12.495B. Total debt was $45.920B ($4.569B current; $41.351B long-term), down from $54.098B at year-end 2025. Separately, debt excluding finance lease obligations had a $45.606B carrying amount and $42.567B fair value, versus $53.848B carrying amount and $53.769B fair value at year-end. Boeing established a $3.0B 364-day revolver in August 2026 and amended its $3.0B and $4.0B five-year revolvers, now maturing in 2029 and 2030.

Common shares outstanding were approximately 784.698M at January 1, 2026 and 791.896M at September 30. Weighted-average diluted shares were 790.4M for 9M from 756.7M, and 792.7M for Q3 from 759.9M; potential shares were excluded as antidilutive during the loss periods. The 5.75M mandatory convertible preferred shares convert in October 2027 into 5.8280–6.9940 common shares each. Boeing also granted executives 1,922,574 RSUs at a grant-date fair value of $242.18 per unit.

Programs, commitments and other risks

Inventory rose to $90.948B from $84.679B at year-end, including $77.193B for commercial-aircraft programs. Boeing expects to recover $14.760B of 737 deferred production and tooling costs from firm-order units. For the 787, $13.873B of deferred production and tooling costs are expected to be recovered from firm orders, while another $1.874B depends on expected future orders. 777X work in process increased to $7.608B from $4.313B. Advances and progress billings rose to $67.502B from $59.404B.

Fixed-price development contracts remain a material source of potential charges. The $4B VC-25B/Air Force One program recorded an additional $312M reach-forward loss in 9M 2026; further losses remain possible. A KC-46A supplier shortage disrupted Q3 production, and potential supplier termination liabilities were $219M. T-7A potential supplier termination liabilities for future production lots were $876M. Boeing and NASA shifted the expected uncrewed Commercial Crew mission to Q1 2027 and crewed missions to late 2028; the program had $556M in capitalized precontract costs and $15M in potential termination liabilities for unauthorized future missions.

ULA’s Vulcan launch anomaly has paused launches, threatening its financial condition. Boeing and Lockheed each guaranteed $750M of ULA credit facilities and expect to provide further support. Other exposures include $16.470B of aircraft financing commitments, of which $11.329B relate to customers assessed below investment grade, and $3.552B of standby-letter-of-credit and surety-bond exposure. Environmental remediation liabilities rose to $1.201B from $877M; the high end of reasonably possible costs exceeded the recorded liability by $1.070B. Product-warranty liabilities rose to $3.205B from $2.797B, including $478M of adverse estimate changes.

Boeing completed its Spirit AeroSystems acquisition in December 2025 for consideration with a fair value of $8.389B; its preliminary allocation included $10.598B of goodwill assigned to Commercial Airplanes, with valuation still provisional. Boeing also agreed to sell Insitu, Wisk Aero and SkyGrid to Archer for shares and warrants; assets of $688M and liabilities of $161M were classified as held for sale.

Boeing (BA) — Q3 and nine months ended September 30, 2026

Consolidated performance

Boeing’s operating results recovered sharply year over year, but profitability remained thin. Q3 revenue rose 3.9% to $24.188B from $23.270B; nine-month (9M) revenue increased 8.3% to $70.965B from $65.515B. GAAP operating earnings were $354M in Q3, versus a $4.781B loss, and $958M for 9M, versus a $4.496B loss. Operating margins were 1.5% and 1.3%, respectively, compared with (20.5)% and (6.9)%.

Boeing-attributable net loss narrowed to $116M in Q3 from $5.337B, and to $564M for 9M from $5.985B. Diluted loss per share was $0.26 in Q3 from $7.14 and $1.04 for 9M from $8.25. Separately, the cash-flow discussion reports consolidated 9M net loss of $551M, versus $5.982B.

Non-GAAP core operating earnings were $204M in Q3, versus a $5.049B loss, and $498M for 9M, versus a $5.283B loss; core margins were 0.8% and 0.7%, compared with (21.7)% and (8.1)%. Core results exclude FAS/CAS pension and postretirement service-cost adjustments: $150M in Q3 and $460M for 9M, versus $268M and $787M in 2025. Core loss per share was $0.34 in Q3 from $7.47 and $1.30 for 9M from $9.22. Diluted weighted-average shares increased to 792.7M in Q3 from 759.9M and 790.4M for 9M from 756.7M.

Segment results and operating drivers

Segment operating earnings totaled $814M, versus a $4.301B loss. Reconciliation items were unallocated items, eliminations and other of $(610)M from $(748)M, pension FAS/CAS adjustment of $92M from $198M, and postretirement adjustment of $58M from $70M, producing GAAP operating earnings of $354M. BDS was the primary source of revenue growth.

BCA’s Q3 revenue fell mainly because of less favorable delivery mix; its operating loss narrowed largely because 2025 included a $4.899B 777X reach-forward loss. Current BCA results remain pressured by production and supply-chain costs and lower margins. BCA delivered 161 aircraft in Q3 versus 160, and 475 for 9M versus 440. Its 9M revenue rose $1.559B, supported by higher 737 deliveries and favorable 787 pricing, partly offset by fewer 777 deliveries. The 767 program recorded an $86M 9M reach-forward loss, compared with $241M.

BDS 9M revenue was $23.017B from $19.817B, and operating earnings were $710M from $379M. Growth reflected proprietary, weapons-program and KC-46A revenue, the Spirit defense-business acquisition and fewer unfavorable contract catch-ups. Earnings also benefited from a $252M investment-sale gain and higher volume; 9M results included $312M of VC-25B losses, while 2025 included $149M of KC-46A losses. BGS 9M revenue was $16.288B from $15.714B and operating earnings $2.958B from $2.930B. Its margin declined to 18.2% from 18.6%, reflecting the Digital Aviation Solutions divestiture and disruption following a distribution-business ERP transition. The divestiture removed $969M of 9M revenue and $229M of earnings (Q3: $337M and $84M).

Consolidated cost of sales was $22.021B in Q3 from $25.645B and $63.838B for 9M from $63.038B. The improvement in Q3 chiefly reflects the absence of the prior-year 777X charge, partly offset by lower BCA margins and higher revenue-related costs. R&D expense was $830M in Q3 from $897M and $2.654B for 9M from $2.651B, with 9M enterprise product-development investment contributing to the increase. Interest and debt expense declined to $573M in Q3 from $694M and $1.789B for 9M from $2.112B, mainly on lower debt balances.

Cash flow, liquidity and backlog

For 9M, operating cash flow was $2.681B, versus $266M used; capital expenditures were $3.0B, versus $2.0B, and Boeing expects 2026 capex to exceed 2025. Favorable working-capital movements included $10.2B from advances and progress billings and $1.9B from accounts payable, partly offset by $6.6B from inventory and $2.1B from accrued liabilities. Investing activities provided $3.853B, compared with $5.901B used, including $6.9B of net investment proceeds versus $3.7B of net contributions in 2025. Financing activities used $8.620B, mainly reflecting $7.8B higher net repayments.

Debt declined to $45.9B at September 30, 2026, from $54.1B at year-end 2025, including $4.6B short-term debt. Liquidity comprised $9.5B cash, $11.2B short-term investments and $10.0B of unused revolving-credit capacity. Cash and restricted cash were $9.541B, versus $6.882B a year earlier. Credit ratings remained investment grade; Fitch affirmed BBB- and moved its outlook to positive. Environmental remediation liabilities were $1.201B.

Total backlog increased to $745.431B from $682.207B at December 31, 2025: contractual backlog was $692.767B from $639.721B, and unobligated government backlog was $52.664B from $42.486B. BCA backlog reached $611.833B from $567.290B; BDS backlog was $100.505B from $84.786B, with 23% attributable to non-U.S. customers; BGS backlog rose to $32.725B from $29.720B. BCA 9M cancellations were $3.164B, mainly in 737 and 787, and net ASC 606 adjustments reduced backlog by $1.886B, primarily for 777X.

Execution and external risks

Production-rate delays are weighing on results and cash flow. Boeing expects 737 production to stabilize at 47 per month in 2027 before a planned increase to 52; its new 737 line began low-rate production in July 2026 and needs FAA production certification before deliveries. Boeing reported 737-7 certification and approval of an engine anti-ice solution in Q3, and 737-10 certification in October; about 45 737-7/-10 aircraft were in inventory at quarter-end. For the 787, production stabilized at eight per month, but the next increase was delayed to December 2026. The 767 commercial program is expected to end production by 2027.

777X certification flight testing continues, with final flight-test approvals expected by year-end 2026 and first 777-9 delivery expected in 2027. The 777-8 Freighter is expected about two years later, and the passenger 777-8 no earlier than 2030. The 777 and 777X had near-break-even gross margins at quarter-end; supply constraints, labor, delivery timing, certification, customer negotiations and rate changes could further pressure results or cause additional reach-forward losses. A key 777 supplier’s shortages disrupted Q3 factory operations, with disruption expected through H1 2027 and abnormal costs affecting 777 Freighter and KC-46A.

Boeing also cited supplier financial distress, inflation, labor instability, tariffs and export restrictions as risks to productivity, results and cash flow. Government funding and shifting budget priorities may affect BDS awards and programs; fixed-price development work—including KC-46A, VC-25B, T-7A, MQ-25, Commercial Crew and satellites—faces technical, schedule and cost-overrun risks. Engineering and technical employees represented by SPEEA ratified contracts through 2030 on October 1, 2026. Boeing received about $420M of refunds for prior IEEPA tariff assessments during 9M following a February 2026 Supreme Court ruling, while broader trade and export-control uncertainty persists.

Item 3 — Quantitative and Qualitative Disclosures About Market Risk

Boeing reported no significant changes in its market risk since December 31, 2025. The section provides no additional market-risk metrics or developments.

Controls and Procedures

As of September 30, 2026, Boeing’s CEO and CFO assessed the company’s disclosure controls and procedures as effective. No changes in internal control over financial reporting during Q3 2026 materially affected, or were reasonably likely to materially affect, those controls. This section reports no financial results or other business developments.

Boeing reported no material changes to the risk factors described in its Form 10-K for the year ended December 31, 2025. This section provides no additional risk details, financial metrics, or strategic developments.

For the three months ended September 30, 2026 (Q3 2026), no directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. The section reports no financial metrics or other material business developments.