Summary
Boeing's 2015 10-K filing reveals a year of robust revenue growth, driven primarily by its Commercial Airplanes segment. Total revenues increased by 6% to $96.11 billion, largely due to higher airplane deliveries and a favorable mix. The Defense, Space & Security (BDS) segment experienced a slight revenue decline. The company's earnings from operations remained stable year-over-year, impacted by a significant $885 million charge on the 747 program and increased charges related to the KC-46A Tanker contract. Despite these charges, Boeing demonstrated strong cash flow from operations and continued its commitment to returning capital to shareholders through share repurchases and dividends. Key risks highlighted include the cyclical nature of the commercial airline industry, dependence on major customers, potential cost overruns on fixed-price contracts (particularly in the BDS segment), and pressures from international competition. Boeing's substantial backlog of $476.6 billion at year-end 2015 provides a degree of revenue visibility, but program execution, production rate ramp-ups, and managing R&D investments for new aircraft derivatives like the 737 MAX and 777X remain critical focus areas for future performance.
Financial Highlights
55 data points| Revenue | $96.11B |
| Cost of Revenue | $82.09B |
| Gross Profit | $14.03B |
| R&D Expenses | $3.33B |
| Operating Income | $7.44B |
| Net Income | $5.18B |
| EPS (Basic) | $7.52 |
| EPS (Diluted) | $7.44 |
| Shares Outstanding (Basic) | 688.00M |
| Shares Outstanding (Diluted) | 695.00M |
Key Highlights
- 1Total revenues increased by 6% to $96.11 billion in 2015, primarily driven by a 10% increase in Commercial Airplanes revenue.
- 2Earnings from operations were $7.44 billion, slightly down from $7.47 billion in 2014, impacted by program charges.
- 3A significant $885 million charge was recognized on the 747 program in Q4 2015 due to reduced production rates and market pressures.
- 4The company recorded reach-forward losses totaling $835 million on the KC-46A Tanker contract in 2015.
- 5Contractual backlog stood at $476.6 billion at year-end 2015, a decrease from $487.1 billion in 2014, reflecting deliveries exceeding net orders.
- 6Boeing continued share repurchases, announcing a new $14 billion repurchase plan in December 2015.
- 7Pension and postretirement benefit costs were a significant factor, with unallocated pension expense decreasing substantially in 2015 due to lower amortization and curtailment charges.