Boeing's $6B Q3 Loss: Strike Paralyzes Production, Drags Profits

Boeing reported a third-quarter net loss of $6.1 billion for the period ended September 30, widening from prior periods as a strike by 33,000 machinists shut down key assembly plants in the Seattle area.[3] Revenue came in at $17.84 billion, meeting analyst expectations, but per-share losses hit $9.97, or $10.44 adjusted, slightly worse than the $10.34 forecast by Zacks Investment Research.[3] The walkout, which began September 13 after contract talks collapsed, has prevented production of new 737 aircraft, exacerbating delays in 737 MAX deliveries.[3][4] CEO Kelly Ortberg highlighted progress in commercial aviation, noting the FAA's approval last month to ramp 737 production from 38 to 42 planes per month and limited airworthiness certifications for 737 MAX and 787 Dreamliner models in September.[2] Yet, the company took a $4.9 billion charge after delaying 777-9 deliveries from 2026 to 2027 to align with FAA requirements, CFO Jay Malave said on the October 29 earnings call.[2] These setbacks come amid ongoing scrutiny from federal probes following a January mid-air panel blowout on a 737 MAX.[3] The strike's toll extends beyond commercial operations. While a separate machinist walkout by 3,200 IAM District 837 workers at St. Louis fighter jet plants since August 4 had 'immaterial' Q3 impacts on defense revenue—which rose 25% to $6.9 billion—disruptions delayed F-15EX deliveries, Air Force Chief of Staff-elect Gen. Kenneth Wilsbach told the Senate Armed Services Committee last month.[2] Boeing warned in its Q3 filing that prolonged strikes could materially harm finances, cash flows and operations.[2] Economic fallout mounts, with Anderson Economic Group estimating over $1.4 billion in total costs to Boeing, workers and suppliers, including $207 million in lost employee wages and $572 million from the first week alone.[4] Boeing responded with a hiring freeze, temporary furloughs for general staff and trimmed leadership pay raises to preserve cash amid a massive order backlog.[4] IAM International President Brian Bryant dismissed Boeing's contingency plans to replace strikers, arguing the firm can't match union workers' skills.[2]