Boeing CFO Says 787 Margins Will Top 2018 Levels by 2029, While 737 Recovery Falls Short of Past Highs
Key takeaways
- Boeing’s 787 program is set to outpace 2018 margins by 2029, but the 737 recovery will stay below past highs, underscoring uneven profitability across its fleet.
- $10.7 billion revenue Q3
- -6.5% operating margin Q3
- 47 737s/month target next year
What happened
Boeing’s CFO said the 787 program will reach higher margins than 2018 by 2029, while the 737 program will not return to 2018 levels even as production ramps up. The company’s third‑quarter earnings beat revenue expectations but posted a wider loss and a negative 6.5% operating margin for its Commercial Airplanes unit.
Why it matters
The What a company says it expects for future sales or profits — a forecast from the company, not a guarantee.guidance
Short-term and longer-term
Short-term. In the next few days, watch for the 737 production rate and any updates on supplier disruptions.
Longer-term. Over the coming months, the 787’s stronger margin trajectory could improve Boeing’s overall profitability, but the 737’s limited rebound may temper long‑term growth expectations.
Words on this card
- Operating margin
- The percentage of revenue that remains after covering operating expenses.
- Backlog
- Orders that a company has received but has not yet delivered.
- Supplier disruption
- Interruptions in the supply chain that delay production.
- Production rate
- The number of aircraft a manufacturer builds per month.
- Guidance
- What a company says it expects for future sales or profits — a forecast from the company, not a guarantee.
- Revenue
- Sales — money the company took in before costs.