Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 115

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 115
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 767 assembly line includes the commercial program and a derivative to support the KC-46A Tanker program. We are currently targeting a production rate of approximately three aircraft per month. We expect to complete production of the 767 commercial program by 2027. During 2024, we recorded reach-forward losses of $580 million. During the nine months ended September 30, 2025, we recorded further reach-forward losses of $241 million primarily driven by higher production costs.

See further discussion of the KC-46A Tanker program in Note 11 to our Condensed Consolidated Financial Statements.

777 and 777X Programs The accounting quantity for the 777 program extends through year-end 2027. We increased the accounting quantity by six units during the nine months ended September 30, 2025, because we now expect to produce an additional six units in that timeframe. Cumulative firm orders for the 777X increased from 358 units at December 31, 2024, to 473 units at September 30, 2025. We increased the accounting quantity for the 777X program by 100 units to 600 units during the nine months ended September 30, 2025.

In July 2024, we obtained approval from the FAA to begin the first phase of certification flight testing. Flight testing was paused starting in August 2024 and resumed in January 2025. During the first nine months of 2025, we obtained approval from the FAA to begin the second major phase of certification flight testing, 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