Boeing's Backlog Grew to $745 Billion. The Question Remains How Fast It Can Fulfill It

In the third quarter, Boeing (BA -10.69%) reported a mixed set of earnings, with an adjusted loss per share of $0.34, exceeding analysts' expectations of $0.21. Revenue reached nearly $24.2 billion, surpassing the projected $23.84 billion. The company's total order backlog at the end of September reached a record of $745 billion, including more than 6,300 commercial airplanes, a $30 billion increase from the previous quarter.

However, the main concern for investors was the speed at which the company could fulfill these orders and generate associated revenue. Boeing's stability rate, the number of planes it can build monthly without factories and suppliers falling behind, was set at 47 per month for its best-selling 737 Max family. CEO Robert Kelly Ortberg noted that while factory performance indicators were improving, achieving the desired rate of 47 was taking longer than anticipated and might not be realized until the second half of 2027.

Boeing aims for a stability rate of 52 with the 737 family, but investors' expectations were not met, with Ortberg foreseeing the achievement until next year. The company's future goal of a stability rate of 52 with the 737 family remains a long-term target, and investors are cautiously optimistic, given Boeing's recent certification of the 737 Max 10, a model in high demand with over 1,500 orders.

Despite delays and lower than expected targets, Boeing's backlog provides CEO Ortberg with confidence in generating $2 billion of free cash flow this year and potentially expanding to $10 billion by 2029.