10-KPeriod: FY2021

BOEING CO Annual Report, Year Ended Dec 31, 2021

Filed January 31, 2022For Securities:BABA-PA

Summary

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 billion. 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.

Financial Highlights

54 data points
Beta

Revenue

$62.29B

4.9% Gross Margin

Net Income

-$4.20B

-6.7% Net Margin

EPS (Diluted)

$-7.15

Total Assets

$138.55B

Cash & Equivalents

$8.10B

Free Cash Flow

-$4.40B

Financial Statements
Beta
Revenue$62.29B
Cost of Revenue$59.24B
Gross Profit$3.05B
R&D Expenses$2.25B
Operating Income-$2.87B
Net Income-$4.20B
EPS (Basic)$-7.15
EPS (Diluted)$-7.15
Shares Outstanding (Basic)587.60M
Shares Outstanding (Diluted)587.60M

Key Highlights

  • 1Boeing 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.
  • 2The 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.
  • 3Total backlog increased to $377.5 billion, indicating strong future demand, though delivery timing remains uncertain due to production issues and market recovery pace.
  • 4The Defense, Space & Security (BDS) segment maintained stable revenues and earnings, contributing positively to overall results.
  • 5Global 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.
  • 6The 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.
  • 7Key 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.

Frequently Asked Questions

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.

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.

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.

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.