Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 47

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 47
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, and we had anticipated beginning the third major phase of certification flight testing in the third quarter of 2025. It has taken longer than expected to complete the supporting analysis and obtain FAA approval to begin this phase of testing. We anticipate obtaining FAA approval and starting the third phase of flight testing later this year or early next year. We have also reassessed the anticipated timing to complete subsequent phases of FAA certification flight testing. As a result, we now expect first delivery of the 777-9 to occur in 2027. Due to these delays and to address continued production challenges, we slowed our production rate plans, which resulted in higher estimated production and change-incorporation costs, as well as associated customer and supply chain impacts. The impact of these changes on estimated revenues and costs were partially offset by the 100-unit accounting quantity increase, resulting in an incremental reach-forward loss of $4,899 million during the third quarter of 2025.

We continue to anticipate first delivery of the 777-8 Freighter to occur approximately two years after the first delivery of the 777-9. First delivery of the 777-8 passenger aircraft is not expected to occur before 2030. We are continuing to follow the lead of the FAA as we work through the certification process and the ultimate timing will be determined by the regulators.

46

The level of profitability on the 777X program will be subject to several factors. These factors include aircraft certification requirements and timing, change incorporation on completed aircraft, production disruption due to labor instability and supply chain disruption, customer considerations, delivery timing and negotiations, further production rate adjustments for the 777X or other commercial aircraft programs, and any change in the accounting quantity. One or more of these factors could result in additional reach-forward losses in future periods.

787 Program The 787 program began increasing the production rate to seven per month during the second quarter of 2025 and continues to work toward stabilizing production. We are continuing to monitor supply chain health and factory performance as we work to increase production rates. As of September 30, 2025, and December 31, 2024, we had approximately 10 aircraft and 25 aircraft in inventory that were produced prior to 2023 and required rework. In February 2025, we completed the rework of the last aircraft, and we expect to deliver the 10 aircraft in inventory in 2025 and 2026. It is currently unclear whether the trade tensions between the U.S. and China will impact future deliveries