BA · Earnings call · 2026Q3T · Full report

Supply Chain Cost and Disruption

BOEING CO · 2026-10-27 · Importance 26 · Surprise 24 · In source text

BCA's third-quarter results included higher estimated supply-chain costs, which reduced booking rates alongside production-rate adjustments. A supplier disruption in wing components affected the 777 freighter and 767 tanker production lines; shipments resumed, but a production gap is expected to flow through those lines over the next few quarters. Management said the disruption cost was not material in the third quarter, but will be recorded as abnormal cost and period expense over the next few quarters. The related abnormal costs are expected to pressure run-rate margins into the first half of the following year and largely diminish in the second half.

Key facts

• A wing-component supplier disrupted Boeing's 777 freighter and 767 tanker production lines during the third quarter; shipments resumed, but the production gap is expected to flow through the lines over the next few quarters.
• Costs from the 777 freighter and 767 tanker supplier disruption were not material in the third quarter but will be treated as abnormal cost and period expense over the next few quarters.
• Boeing expects abnormal costs from 777 and 767 supplier disruption to continue in the fourth quarter and first half of the following year, then largely diminish in the second half of that year.

Impact estimates