An experimental Boeing 777X aircraft at the Dubai Air Show in Dubai, United Arab Emirates, on Monday, Nov. 17, 2025. Christopher Pike | Bloomberg | Getty ImagesEmirates is piling the pressure on Boeing to deliver on a $38 billion order placed this week, the airline's president told CNBC on Tuesday.Speaking to CNBC at the Dubai Airshow, Emirates President Tim Clark said he had faith Boeing could "restore [its] former glory" — but nonetheless, the airline is doing what it can to ensure the beleaguered aircraf ...

Financial Data and Key Metrics Changes - Revenue increased by 30% to $23.3 billion, driven by improved operational performance, higher commercial deliveries, and defense volume [18] - Free cash flow was positive at $238 million, marking the first positive cash flow quarter since Q4 2023 [18][19] - Core loss per share was $7.47, primarily reflecting a $4.9 billion charge related to the 777X program [18] Business Line Data and Key Metrics Changes - Boeing Commercial Airplanes (BCA) delivered 160 airplanes in the quarter, the highest quarterly delivery total since 2018, with revenue up nearly 50% to $11.1 billion [20] - BCA's operating margin was negative 48.3%, impacted by the 777X charge [20] - Defense business (BDS) delivered 30 aircraft and two satellites, with revenue growing 25% to $6.9 billion and an operating margin of 1.7% [25] - Global Services (BGS) revenue increased by 10% to $5.4 billion, with an operating margin of 17.5% [28] Market Data and Key Metrics Changes - The backlog ended at $535 billion, including over 5,900 airplanes, with strong demand across all market segments [20][30] - BDS secured $9 billion in orders during the quarter, with a record backlog of $76 billion [25][28] Company Strategy and Development Direction - The company is focused on safety and quality improvements, with a commitment to culture change and operational excellence [4][15] - Plans to increase 737 production to 42 airplanes per month were announced, with a disciplined approach to future rate increases [5][21] - The 777X program faced delays, with first delivery now expected in 2027, leading to a $4.9 billion non-cash charge [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory, highlighting positive cash flow and improved performance across the company [17][30] - The geopolitical environment is seen as favorable for the defense business, with ongoing demand for military capabilities [12][27] - Management acknowledged challenges in the supply chain but remains optimistic about future production rates and operational stability [59][71] Other Important Information - The company is undergoing significant investments in its facilities, particularly in Charleston, to support future production increases [89] - The integration of Jeppesen and Spirit AeroSystems is a priority, with expected impacts on free cash flow next year [85] Q&A Session Summary Question: What is the negative cash flow in 2026 on the 777X? - Management expects a headwind of about $2 billion in 2026, with a path to break-even cash flow anticipated by 2028 [32][33] Question: What changed regarding the 777X program? - The delay is due to underestimating the work required for TIA approvals, not due to new issues with the airplane [39][41] Question: How will the supply chain be managed for the 777X? - The revised schedule will be communicated to suppliers, with negotiations on a case-by-case basis to manage impacts [53] Question: What are the production rates for the 737? - The company plans to exit the year at a 42 per month rate, with future increases being carefully managed [58][60] Question: What is the status of the 737 MAX 7 and 10 certifications? - Certification is progressing, with a focus on engine anti-ice design updates and expected completion in 2026 [66][67] Question: What are the plans for the 787 production ramp? - The next increase will be to 10 per month, with challenges anticipated in the supply chain, particularly for seats [71] Question: What is the outlook for free cash flow in 2026? - Management is optimistic about a break-even or low to mid-single-digit inflow of cash, depending on operational performance [75]

Financial Data and Key Metrics Changes - Revenues for the quarter were $3.6 billion, up 5% or $175 million from the same quarter last year [3] - Segment profit increased to $357 million, up 26% or $73 million from 2024 [3] - Adjusted income from continuing operations was $1.55 per share, compared to $1.40 per share in the same quarter last year [3] - Manufacturing cash flow before pension contributions totaled $281 million, compared to $147 million in the same quarter last year [3] Business Line Data and Key Metrics Changes - Textron Aviation revenues were $1.5 billion, up 10% or $138 million from 2024, driven by higher aircraft revenues and aftermarket parts [14] - Bell revenues were $1 billion, up 10% or $97 million from 2024, primarily due to higher military revenues from the MV75 program [15] - Textron Systems revenues were $307 million, up 2% or $6 million from last year, with an increase in backlog of about $1 billion [11][15] - Industrial revenues decreased to $761 million, down $79 million from last year, primarily due to the divestiture of the powersports business [16] Market Data and Key Metrics Changes - Aviation backlog ended the quarter at $7.7 billion, reflecting strong demand [8][14] - Bell's backlog increased to $8.2 billion, up $1.3 billion from the prior quarter [15] - Textron Systems backlog ended at $3.2 billion, an increase of $980 million from the prior quarter [16] Company Strategy and Development Direction - The company announced the elimination of the Textron Aviation segment as a separate reporting segment, realigning business activities to leverage existing sales capabilities [12] - A new President and CEO, Lisa Atherton, was elected, indicating a focus on internal leadership development [4][5] - The company continues to focus on strong growth in aerospace and defense businesses, with significant investments in new aircraft and technology [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across the aviation portfolio, with expectations for continued growth in aftermarket revenues [23][25] - The company anticipates a strong fourth quarter driven by increased volume and improved margins [65] - Management noted ongoing supply chain improvements, although some critical issues remain [55] Other Important Information - The company repurchased approximately 2.6 million shares, returning $206 million in cash to shareholders during the quarter [19] - Full-year adjusted earnings per share guidance is reiterated to be in the range of $6 to $6.2 [19] Q&A Session Summary Question: Impact of Army's announcement on MV75 program - Management indicated that the announcement would not change the near-term strategy, focusing on the basic aircraft's critical parameters [21][22] Question: Highlights on aviation demand - Management noted strong retail demand across the entire aviation portfolio, with improving margins and significant certification activity [23][24] Question: Update on MV75 program and contract signing - Management clarified that the program is largely cost-plus, with low risk in bringing forward LRIP units [28][30] Question: Long-term margin targets for aviation - Management stated that volume is the biggest lever for improving margins, with solid pricing feedback observed [40] Question: Supply chain issues and revenue forecast - Management acknowledged ongoing supply chain challenges but expressed confidence in achieving the revenue forecast [55][56] Question: Unmanned portfolio performance - Management reported strong demand for unmanned systems and ongoing development of new platforms [71][74] Question: Portfolio reevaluation with management change - Management confirmed that the company continuously evaluates its portfolio for potential acquisitions or disposals [80][81] Question: Demand shifts across business jets - Management indicated that current demand is stable, with capacity constraints affecting delivery mix [84][86]

Core Viewpoint - Boeing's 777X aircraft program has faced significant delays, with the first commercial flights now expected in 2027, pushed back from an initial 2020 target due to certification challenges and extensive work still required [2][4][6]. Program Delays and Challenges - The 777X program, launched in 2013, has encountered complexities in design and certification, including innovative features like folding wingtips and large GE9X engines [3][5]. - Boeing's CEO acknowledged a "mountain of work" remains, particularly in obtaining Type Inspection Authorization from the FAA, which is crucial for certification [4][5]. - The delay has resulted in substantial financial implications, with Boeing reporting reach-forward losses of $4.08 billion for the 777X and 767 programs combined in Q4 2024 [5]. Demand and Customer Sentiment - Despite the delays, demand for the 777X remains strong, with over 550 orders received, indicating airlines' eagerness for the aircraft's advanced features [6][7]. - Emirates, the largest customer with 205 orders, has expressed cautious optimism about receiving the first units in 2027, highlighting the determination to address concerns raised by customers [10][11]. Aircraft Features and Passenger Experience - The 777X promises significant improvements, including a larger cabin, reduced fuel burn, and extended range, with a projected 10% decrease in fuel consumption compared to the 777-300ER [7][8]. - The aircraft's design includes larger windows and a wider cabin, enhancing passenger comfort and allowing airlines to innovate in cabin configurations [13][14]. - Emirates plans to incorporate its luxurious "Game Changer" first-class suite into the 777X, which features advanced design elements for premium passengers [14][15].