Boeing reports preliminary third-quarter loss due to certification delays and production disruptions By Investing.com

Investiong.com – Boeing reported a preliminary third-quarter loss on Friday as the aircraft maker faces financial losses from writedowns stemming from certification delays, production disruptions and the ongoing machinists’ strike.

Boeing Co (NYSE:) fell more than 1% in after-hours trading on Friday following the report.

The company said it expected a third-quarter loss of $9.97 on revenue of $17.8 billion.

The loss was due to “work stoppages and charges in the commercial aircraft and defense segments” of the International Association of Machinists and Aerospace Workers, the company said.

The company’s commercial aircraft division expects pretax profit expenses of $3.0 billion for the 777X and 767 programs. The first delivery of the 777-9 will occur in 2026 and the 777-8 freighter is now expected in 2028, resulting in a pre-tax charge to earnings of $2.6 billion.

The company said its defense, aerospace and security business will suffer pretax charges of $2.0 billion due to the T-7A, KC-46A, Commercial Crew and MQ-25 programs .

Boeing reported preliminary negative operating cash flow of $1.3 billion for the quarter, with cash and investments in marketable securities totaling $10.5 billion at the end of the period.

“As our company faces near-term challenges, we are making important strategic decisions for our future and have a clear vision of the work we must do to restore our business,” said Kelly Ortberg, Boeing president and CEO. “These decisive measures as well as important structural changes to our business are necessary in order to remain competitive in the long term.”

The company also said it plans to halt production of the 767 freighter and record a $0.4 billion pretax charge on the program, also reflecting the impact of the ongoing machinists’ strike. Boeing announced that starting in 2027 it would exclusively produce 767-2C aircraft to support the KC-46A tanker program.

Boeing’s commercial aircraft segment expects third-quarter revenue of $7.4 billion and an operating margin of -54.0%, while its defense, space and security segment expects revenue of $5.5 billion and an operating margin of 43.1% is expected.