Boeing said Tuesday it will not significantly ramp up production of its best-selling 737 Max until late 2027, targeting a rate of 52 planes a month in the second half of 2027 after stabilizing at about 47 a month.

CEO Kelly Ortberg said the company now expects to reach 47 jets per month in early 2027, well past its original summer 2026 goal, because it has not been able to produce wings fast enough. The delay also means Boeing will miss its target of delivering 500 commercial aircraft in 2026.

The surprise was not the quarter itself but the outlook. Boeing reported sharply narrower losses, positive free cash flow and a record $745 billion backlog, yet guided to only about $3 billion in free cash flow in 2027 and $6 billion in 2028.

According to TradingView, citing LSEG data, Wall Street consensus stood at $5.6 billion and $9.6 billion respectively, so the shortfall was dramatic.

Investors now confront a persistent problem in the turnaround: strong demand for aircraft does not translate into near-term cash, because most of a jet's price is paid only on delivery.

For the quarter ended September 30, Boeing reported a net loss of $116 million, or 26 cents a share, versus a $5.34 billion loss a year earlier, and an adjusted loss of 34 cents that missed the expected 21-cent loss. Free cash flow rose to $464 million from $238 million.

The commercial airplanes unit posted revenue of $10.72 billion, down 3%, with a negative 6.5% operating margin that Boeing attributed to a less favorable delivery mix and higher supply chain costs.

737 Max deliveries are Boeing's biggest cash engine, so slower output postpones customer payments while spending on suppliers and factories continues.

The company still faces production challenges on the 787 Dreamliner and 777 freighter programs, and Boeing has burned $359 million in cash year-to-date, per NDTV Profit, leaving a heavy debt load to work down.

There are bright spots to build on.

The FAA certified the 737 Max 7 in August and the larger Max 10 in October, completing the Max family's certification, and the U.S. Navy selected Boeing for its F/A-XX next-generation fighter, with a PAC-3 missile seeker contract also won, according to TradingView.

Boeing delivered 161 commercial jets in the quarter, one more than a year earlier, and continues to target the first 777-9 delivery in 2027.

'Expectations are rising, and they should,' Ortberg wrote to staff, adding that Boeing has 'a stronger foundation than a year ago' but more work to do to deliver its backlog. The question is whether production discipline can convert a $745 billion backlog into cash quickly enough.