Boeing announced that it will fall short of its 737 production and jet delivery targets for 2026, prompting a sharp decline in its stock price. CEO Kelly Ortberg confirmed the company’s revised timeline for reaching a production rate of 47 737 jets per month has been pushed back to early 2027, after previously projecting to achieve this milestone by summer 2026.

The setback has adversely affected investor sentiment, with Boeing shares dropping nearly 10 percent to $170.23 during afternoon trading, marking their steepest decline since April 2025. The company also lowered its free cash flow growth forecast, now expecting $3 billion next year instead of the previously anticipated $5.5 billion.

Boeing’s financial chief, Jay Malave, indicated that the company will miss its goal of delivering 500 jets in 2026. Production bottlenecks, particularly in wing manufacturing, remain a primary challenge. Ortberg noted that while these constraints persist, Boeing plans to accelerate output to 52 aircraft per month in the latter half of 2027.

The 737 remains a critical driver of Boeing’s revenue and cash flow, and the company has been focused on balancing production speed with maintaining quality. Prior to Ortberg’s appointment in early 2024, Boeing struggled with production issues linked to efforts to rapidly increase output, which had negatively impacted quality and financial performance.

Despite the delays, Ortberg emphasized a disciplined approach, stating the company aims to manage expectations carefully while steadily progressing toward its targets. Analysts noted that although aerospace manufacturers face broad challenges in ramping up production, Boeing’s long-term prospects remain positive due to strong market demand and limited significant competition aside from Airbus. Nonetheless, the company’s recent struggles have heightened investor caution given the ongoing recovery from years of operational and reputational difficulties.