01—Abstract
Summary
Summary of the 10-K filed January 31, 2022. Cited figures are marked; the original filing is the authoritative source.
The Boeing Company's 2021 10-K filing highlights a challenging year marked by the ongoing impacts of the COVID-19 pandemic, 787 production issues, and the residual effects of the 737 MAX grounding.
While revenues increased compared to 2020, driven by higher 737 MAX deliveries and improved Global Services volume, the company reported a significant net loss attributable to shareholders of $4.2 billiona. The Commercial Airplanes segment, in particular, incurred substantial operating losses, exacerbated by a $3.5 billion reach-forward loss on the 787 program and $1.9 billion in abnormal production costs for the 737 MAX. Despite these headwinds, Boeing saw a substantial increase in its backlog to $377.5 billion, driven by new orders and price escalation.
The company is actively managing its liquidity, having repaid a significant portion of its debt. The Defense, Space & Security segment demonstrated resilience with stable revenues and earnings, while Global Services showed strong earnings growth. Key risks and uncertainties remain, including the pace of commercial air travel recovery, continued production disruptions, and the regulatory environment, all of which will influence future performance.
02—Key points
Key Highlights
- Boeing reported a net loss of $4.2 billion for 2021, a significant improvement from the $11.9 billion loss in 2020, but still reflecting ongoing operational challenges.
- The Commercial Airplanes (BCA) segment experienced a $6.5 billion loss from operations, impacted by a $3.5 billion reach-forward loss on the 787 program and $1.9 billion in abnormal production costs for the 737 MAX.
- Total backlog increased to $377.5 billion, indicating strong future demand, though delivery timing remains uncertain due to production issues and market recovery pace.
- The Defense, Space & Security (BDS) segment maintained stable revenues and earnings, contributing positively to overall results.
- Global Services (BGS) showed significant improvement with a $2.0 billion profit from operations, up from $450 million in 2020, driven by higher commercial and government services volume.
- The company's liquidity was managed through debt repayments and a strong cash and short-term investments balance of $16.2 billion at year-end 2021.
- Key programs like the 737 MAX and 787 continue to face production and delivery challenges, impacting the company's financial performance and requiring ongoing management attention.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2021, Boeing Co lost $0.07.
- Revenue$62.29B100.0%
- Cost of revenue−$59.24B95.1%
- Gross profit$3.05B4.9%
- Operating costs−$5.92B9.5%
- Operating income−$2.87B4.6%
- Interest, other & tax−$1.33B2.1%
- Net income−$4.20B6.7%
04—Financials
Financial Highlights
Figures from 10-KFY2021filed January 31, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $62.29B$58.16B | +7.1% |
| Cost of Revenue | $59.24B$63.84B | −7.2% |
| Gross Profit | $3.05B-$5.68B | +153.6% |
| R&D Expenses | $2.25B$2.48B | −9.2% |
| Operating Income | -$2.87B-$12.77B | +77.5% |
| Net Income | -$4.20B-$11.87B | +64.6% |
| EPS (Basic) | $-7.15$-20.88 | +65.8% |
| EPS (Diluted) | $-7.15$-20.88 | +65.8% |
| Shares Outstanding (Basic) | 587.60M568.60M | +3.3% |
| Shares Outstanding (Diluted) | 587.60M568.60M | +3.3% |
05—Questions
Frequently Asked Questions
What were the main financial results for Boeing in 2021?
In 2021, Boeing reported total revenues of $62.3 billion, an increase from $58.2 billion in 2020. However, the company posted a net loss attributable to shareholders of $4.2 billion, a significant improvement from the $11.9 billion loss in 2020, but still reflecting substantial operational challenges. The Commercial Airplanes segment continued to be a major source of loss.
What are the key challenges and risks facing Boeing?
Boeing continues to face significant challenges including the ongoing impacts of the COVID-19 pandemic on air travel demand, production quality issues and associated rework for the 787 program, and residual impacts from the 737 MAX grounding, such as delayed deliveries to China. Other risks include supply chain disruptions, intense competition, regulatory scrutiny, and managing its substantial debt load.
How is Boeing managing its debt and liquidity?
Boeing ended 2021 with a debt balance of $58.1 billion. The company has been actively managing its liquidity by repaying debt, including $13.8 billion under its delayed draw term loan credit agreement. As of December 31, 2021, Boeing had $16.2 billion in cash and short-term investments and $14.7 billion in unused borrowing capacity on its revolving credit lines, indicating a focus on maintaining financial flexibility.
What is the outlook for Boeing's commercial and defense segments?
The commercial airplane market is expected to recover gradually, with narrow-body aircraft likely to recover faster than wide-body. Boeing anticipates commercial air travel to return to 2019 levels by 2023-2024. The Defense, Space & Security segment remains robust with stable demand for its major platforms, driven by both domestic and international markets. Global Services is also seeing recovery, though commercial services volumes are still below pre-pandemic levels.
06—Continue