Summary
The Boeing Company's 2017 10-K filing reveals a year of significant financial recovery and strategic adjustments. While overall revenues saw a slight decrease compared to 2016, the company demonstrated substantial improvement in profitability, driven by a strong rebound in the Commercial Airplanes segment, which benefited from lower reach-forward losses and improved cost performance. The Defense, Space & Security segment also saw increased earnings, bolstered by reduced charges on key programs. The company continued to invest in future growth, evidenced by ongoing R&D and significant backlog figures. Key financial highlights include a notable increase in net earnings and diluted EPS, demonstrating operational efficiency gains. Boeing also returned substantial capital to shareholders through share repurchases and dividends, underscoring its commitment to shareholder value. The company's strategic focus on core businesses (BCA, BDS, BGS) and supported by Boeing Capital (BCC) positions it to navigate the cyclical nature of the aerospace and defense markets. However, investors should remain aware of the inherent risks associated with government contract reliance, production complexities, and global economic sensitivities impacting commercial airline demand.
Financial Highlights
57 data points| Revenue | $94.00B |
| Cost of Revenue | $76.61B |
| Gross Profit | $17.39B |
| R&D Expenses | $3.18B |
| Operating Income | $10.34B |
| Net Income | $8.46B |
| EPS (Basic) | $14.03 |
| EPS (Diluted) | $13.85 |
| Shares Outstanding (Basic) | 603.20M |
| Shares Outstanding (Diluted) | 610.00M |
Key Highlights
- 1Net earnings increased significantly in 2017 to $8.2 billion, a substantial improvement from $4.9 billion in 2016, reflecting improved operational performance and reduced charges.
- 2Diluted earnings per share (EPS) rose to $13.43 in 2017, up from $7.61 in 2016, showcasing enhanced profitability.
- 3Total revenues saw a slight decline to $93.4 billion in 2017 from $94.6 billion in 2016, primarily due to delivery mix in Commercial Airplanes and lower milestone revenue in Defense, Space & Security.
- 4The Commercial Airplanes (BCA) segment's earnings from operations more than tripled year-over-year, reaching $5.4 billion in 2017, driven by lower reach-forward losses and improved cost performance.
- 5The company repurchased approximately $9.2 billion of its common stock in 2017 and paid $3.5 billion in dividends, returning significant capital to shareholders.
- 6Backlog remained robust, totaling $488.1 billion at the end of 2017, providing a strong base for future revenues across all segments.