Boeing narrowed its net loss to $116 million, or 26 cents a share, in the third quarter ended September 30, compared with a $5.34 billion loss, or $7.14 per share, a year earlier. The improvement came as the company's defense unit revenue jumped 15 percent from the year-ago period to $7.94 billion. Chief Executive Kelly Ortberg told staff that the manufacturer has more work to do, even as he acknowledged that rising expectations mean the company must elevate its performance through improvements in lean operations, productivity and efficiency.
Overall revenue climbed 4 percent to $24.19 billion for the quarter. Free cash flow rose to $464 million from $238 million in the third quarter of 2025. However, Boeing's commercial aircraft business, which generates most of its revenue, faced headwinds. The unit's revenue fell 3 percent to $10.72 billion, weighed down by what the company described as a less favorable delivery mix, higher projected costs for future production rate adjustments and increased estimated supply chain costs. The commercial aircraft unit posted a negative operating margin of 6.5 percent.
Boeing delivered 161 commercial airplanes in the third quarter, one more jet than a year earlier. The company has been producing around 47 of its 737 Max planes monthly but is targeting higher output. Ortberg previously told investors that production is taking longer than expected to stabilize, with plans to increase output next year. Aircraft production and deliveries are crucial to Boeing's recovery because customers pay the bulk of an aircraft's price upon delivery.
The manufacturer recently secured wins that could support its trajectory. The U.S. Navy selected Boeing to develop its next-generation fighter jet. The Federal Aviation Administration last week approved the 737 Max 10, the largest variant in the Max family, following approval of the 737 Max 7 in August. These certifications completed the regulatory approvals for the aircraft line. Ortberg and other company executives are scheduled to update investors on production acceleration plans during a quarterly earnings call on Tuesday at 10:30 a.m. ET.