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BA −1.71% on Nov 12 · Analysis updated Nov 12, 2026, 5:33 PM ET
Why is The Boeing Company (BA) stock down?
Boeing is trading in a tight consolidation range around $171–$175 following its drop to $165.01 in late October, closing at $171.55 on Nov 12 on muted trading volume of 6.01M shares. Operationally, the company continues to battle execution friction after cutting ~2,500 commercial jobs (5% of the division) and pushing its 47-per-month 737 MAX production target out to early 2027 due to wing and supply chain bottlenecks, resulting in a 14% month-over-month delivery drop to 49 jets in October. Offsetting these persistent manufacturing drag factors is exceptional commercial demand, marked by 165 gross orders in October—headlined by Avolon's 140-jet MAX 10 purchase—and record overall backlogs exceeding $600B. In the immediate term, declining trading volumes and the absence of fresh delivery catalysts keep price action balanced between multi-year order book strength and delayed operational ramp-up.
News behind the analysis
- Boeing cuts about 5% of commercial airplane workforce as production recovery slowsBoeing Commercial Airplanes announced it will eliminate roughly 2,500 jobs (5% of division staff) via layoffs and attrition after slowing its planned 737 MAX production ramp.
- Boeing October deliveries fall 14% to 49 jets despite bumper order intakeBoeing delivered 49 commercial jets in October, down 14% month-over-month, while securing 165 gross orders without cancellations, marking its strongest October net order tally since 1997.
- Avolon finalizes order for 140 Boeing 737-10 jetsAircraft lessor Avolon finalized a major deal for 140 Boeing 737 MAX 10 jets, providing a key multi-year narrowbody commitment.
- Boeing and Icelease sign agreement for up to three 767-300 converted freightersIcelease agreed to an order for one 767-300 Boeing Converted Freighter and options for up to two more, with initial induction scheduled for Q1 2027.
- Boeing defense sales grew 15% in Q3 while jetliner revenue contractedBoeing's defense unit posted a 15% revenue gain to $7.9 billion in Q3 with a record backlog of $101 billion, helping offset commercial jetliner manufacturing headwinds.
About Boeing Company
Boeing is one of the world's two big makers of large passenger jets, best known for the 737 MAX and 787 Dreamliner, and also builds military aircraft, helicopters, satellites and space systems. It is trying to recover from years of safety and production problems. Late in 2026 it reported record order backlog of about $745 billion, and the FAA certified the 737-7 and 737-10 models.
How it makes money
Boeing makes money in three main ways. Its biggest unit, Commercial Airplanes, sells jets to airlines and leasing companies and usually brings in roughly 40–50% of revenue. Defense, Space & Security sells military aircraft such as the KC-46 tanker, Apache and Chinook helicopters, and F-15 fighters, plus space and satellite programs. This unit is often around a third of revenue, and some of its fixed-price contracts have led to losses. Global Services, roughly a quarter of revenue, earns steadier money from spare parts, maintenance, aircraft conversions and training.
What usually moves BA
- 737 MAX and 787 production and delivery rates
- FAA safety oversight and certification decisions
- Free cash flow and debt levels
- Cost overruns on fixed-price defense contracts
- Airline demand, big orders and supplier/engine bottlenecks