Aviation News – Boeing Reports Third Quarter Results – THE AVIATION
Boeing Reports Third Quarter Results
Third Quarter 2024
- Financials reflect impacts of the International Association of Machinists and Aerospace Workers (IAM) work stoppage and previously announced charges on commercial and defense programs
- Revenue of $17.8 billion, GAAP loss per share of ($9.97) and core (non-GAAP)* loss per share of ($10.44)
- Operating cash flow of ($1.3) billion and free cash flow of ($2.0) billion (non-GAAP)*
- Total company backlog of $511 billion, including over 5,400 commercial airplanes
|
Table 1. Summary Financial Results |
Third Quarter |
Nine Months |
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|
(Dollars in Millions, except per share data) |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||||||||||||||||
|
Revenues |
$17,840 |
$18,104 |
(1) % |
$51,275 |
$55,776 |
(8) % |
||||||||||||||||||||||||||||||||
|
GAAP |
||||||||||||||||||||||||||||||||||||||
|
Loss from operations |
($5,761) |
($808) |
NM |
($6,937) |
($1,056) |
NM |
||||||||||||||||||||||||||||||||
|
Operating margins |
(32.3) |
% |
(4.5) |
% |
NM |
(13.5) |
% |
(1.9) |
% |
NM |
||||||||||||||||||||||||||||
|
Net loss |
($6,174) |
($1,638) |
NM |
($7,968) |
($2,212) |
NM |
||||||||||||||||||||||||||||||||
|
Basic loss per share |
($9.97) |
($2.70) |
NM |
($12.91) |
($3.64) |
NM |
||||||||||||||||||||||||||||||||
|
Operating cash flow |
($1,345) |
$22 |
NM |
($8,630) |
$2,579 |
NM |
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|
Non-GAAP* |
||||||||||||||||||||||||||||||||||||||
|
Core operating loss |
($5,989) |
($1,089) |
NM |
($7,769) |
($1,919) |
NM |
||||||||||||||||||||||||||||||||
|
Core operating margins |
(33.6) |
% |
(6.0) |
% |
NM |
(15.2) |
% |
(3.4) |
% |
NM |
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|
Core loss per share |
($10.44) |
($3.26) |
NM |
($14.52) |
($5.35) |
NM |
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|
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
The Boeing Company [NYSE: BA] recorded third quarter revenue of $17.8 billion, GAAP loss per share of ($9.97) and core loss per share (non-GAAP)* of ($10.44) (Table 1) primarily reflecting impacts of the IAM work stoppage and previously announced charges on commercial and defense programs. Boeing reported operating cash flow of ($1.3) billion and free cash flow of ($2.0) billion (non-GAAP)*.
“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” said Kelly Ortberg, Boeing President and Chief Executive Officer. “Going forward, we will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution, while setting the foundation for the future of Boeing.”
|
Table 2. Cash Flow |
Third Quarter |
Nine Months |
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|
(Millions) |
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||||||||
|
Operating cash flow |
($1,345) |
$22 |
($8,630) |
$2,579 |
||||||||||||||||||||||||||
|
Less additions to property, plant & equipment |
($611) |
($332) |
($1,582) |
($1,096) |
||||||||||||||||||||||||||
|
Free cash flow* |
($1,956) |
($310) |
($10,212) |
$1,483 |
||||||||||||||||||||||||||
|
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
Operating cash flow was ($1.3) billion in the quarter reflecting lower commercial widebody deliveries, as well as unfavorable working capital timing, including the impact of the IAM work stoppage (Table 2).
|
Table 3. Cash, Marketable Securities and Debt Balances |
Quarter End |
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|
(Billions) |
3Q 2024 |
2Q 2024 |
||||||||||||
|
Cash |
$10.0 |
$10.9 |
||||||||||||
|
Marketable securities1 |
$0.5 |
$1.7 |
||||||||||||
|
Total |
$10.5 |
$12.6 |
||||||||||||
|
Consolidated debt |
$57.7 |
$57.9 |
||||||||||||
|
1 Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.” |
Cash and investments in marketable securities totaled $10.5 billion, compared to $12.6 billion at the beginning of the quarter driven by free cash flow usage in the quarter (Table 3). In October, the company entered into a new $10.0 billion short-term credit facility and now has access to total credit facilities of $20.0 billion, which remain undrawn.
Total company backlog at quarter end was $511 billion.
Segment Results
Commercial Airplanes
|
Table 4. Commercial Airplanes |
Third Quarter |
Nine Months |
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|
(Dollars in Millions) |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||||||||||||||||
|
Deliveries |
116 |
105 |
10 % |
291 |
371 |
(22) % |
||||||||||||||||||||||||||||||||
|
Revenues |
$7,443 |
$7,876 |
(5) % |
$18,099 |
$23,420 |
(23) % |
||||||||||||||||||||||||||||||||
|
Loss from operations |
($4,021) |
($678) |
NM |
($5,879) |
($1,676) |
NM |
||||||||||||||||||||||||||||||||
|
Operating margins |
(54.0) |
% |
(8.6) |
% |
NM |
(32.5) |
% |
(7.2) |
% |
NM |
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Commercial Airplanes third quarter revenue of $7.4 billion and operating margin of (54.0) percent reflect previously announced pre-tax charges of $3.0 billion on the 777X and 767 programs as well as the IAM work stoppage and higher period expense, including research and development (Table 4).
The 787 program is currently producing at 4 per month and maintains plans to return to 5 per month by year end. In the quarter, Commercial Airplanes booked 49 net orders and delivered 116 airplanes, with backlog of over 5,400 airplanes valued at $428 billion.
Defense, Space & Security
|
Table 5. Defense, Space & Security |
Third Quarter |
Nine Months |
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|
(Dollars in Millions) |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||||||||||||||||
|
Revenues |
$5,536 |
$5,481 |
1 % |
$18,507 |
$18,187 |
2 % |
||||||||||||||||||||||||||||||||
|
Loss from operations |
($2,384) |
($924) |
NM |
($3,146) |
($1,663) |
NM |
||||||||||||||||||||||||||||||||
|
Operating margins |
(43.1) |
% |
(16.9) |
% |
NM |
(17.0) |
% |
(9.1) |
% |
NM |
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Defense, Space & Security third quarter revenue of $5.5 billion and operating margin of (43.1) percent reflect the previously announced pre-tax charges of $2.0 billion on the T-7A, KC-46A Tanker, Commercial Crew, and MQ-25 programs. Results also reflect unfavorable performance on other programs.
During the quarter, Defense, Space & Security delivered the first production MH-139A to the U.S. Air Force and definitized a contract for two E-7A Wedgetails from the U.S. Air Force. Backlog at Defense, Space & Security was $62 billion, of which 28 percent represents orders from customers outside the U.S.
Global Services
|
Table 6. Global Services |
Third Quarter |
Nine Months |
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|
(Dollars in Millions) |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||||||||||||||||
|
Revenues |
$4,901 |
$4,812 |
2 % |
$14,835 |
$14,278 |
4 % |
||||||||||||||||||||||||||||||||
|
Earnings from operations |
$834 |
$784 |
6 % |
$2,620 |
$2,487 |
5 % |
||||||||||||||||||||||||||||||||
|
Operating margins |
17.0 |
% |
16.3 |
% |
0.7 pts |
17.7 |
% |
17.4 |
% |
0.3 pts |
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Global Services third quarter revenue of $4.9 billion and operating margin of 17.0 percent reflect higher commercial volume and mix.
During the quarter, Global Services secured agreements for Landing Gear Exchange Program and Integrated Material Management with All Nippon Airways and a KC-135 spares contract from the U.S. Air Force.
Additional Financial Information
|
Table 7. Additional Financial Information |
Third Quarter |
Nine Months |
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|
(Dollars in Millions) |
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||||
|
Revenues |
||||||||||||||||||||||||||
|
Unallocated items, eliminations and other |
($40) |
($65) |
($166) |
($109) |
||||||||||||||||||||||
|
Loss from operations |
||||||||||||||||||||||||||
|
Other unallocated items and eliminations |
($418) |
($271) |
($1,364) |
($1,067) |
||||||||||||||||||||||
|
FAS/CAS service cost adjustment |
$228 |
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