Summary
Boeing's 2022 10-K filing highlights a year of recovery and continued challenges. While revenues saw an increase driven by the Commercial Airplanes (BCA) and Global Services (BGS) segments, the Defense, Space & Security (BDS) segment experienced a decline primarily due to charges on development programs. The company reported a net loss attributable to Boeing shareholders of $4.935 billion, an improvement from the previous year, but still reflecting significant ongoing operational and financial headwinds. The backlog remains robust at over $404 billion, underscoring long-term demand. However, production and supply chain disruptions, inflationary pressures, and regulatory certification processes for new aircraft models continue to pose significant risks and impact profitability.
Financial Highlights
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Financial Statements
Beta
| Revenue | $66.61B |
| Cost of Revenue | $63.08B |
| Gross Profit | $3.53B |
| R&D Expenses | $2.85B |
| Operating Income | -$3.52B |
| Net Income | -$4.93B |
| EPS (Basic) | $-8.30 |
| EPS (Diluted) | $-8.30 |
| Shares Outstanding (Basic) | 594.90M |
| Shares Outstanding (Diluted) | 594.90M |
Key Highlights
- 1Total revenues increased to $66.6 billion in 2022, up from $62.3 billion in 2021, primarily due to higher deliveries in the Commercial Airplanes segment and growth in Global Services.
- 2The company reported a net loss attributable to Boeing shareholders of $4.935 billion for 2022, an improvement from $4.202 billion in 2021, but still indicating continued financial strain.
- 3The Defense, Space & Security segment experienced a significant drop in operating earnings, reporting a loss of $3.544 billion in 2022 compared to earnings of $1.544 billion in 2021, largely due to charges on development programs.
- 4Boeing's backlog remained strong, reaching $404.4 billion at the end of 2022, an increase from $377.5 billion in 2021, indicating sustained long-term demand for its products and services.
- 5Operational challenges, including supply chain disruptions, labor instability, and inflationary pressures, continue to affect production rates and profitability across segments, particularly impacting the Commercial Airplanes segment.
- 6The company incurred significant charges related to fixed-price development programs, especially within the Defense, Space & Security segment, including major programs like VC-25B, KC-46A Tanker, and T-7A Red Hawk.
- 7Cash provided by operating activities improved significantly to $3.5 billion in 2022, compared to a net cash used of $3.4 billion in 2021, indicating progress in operational cash generation.
Frequently Asked Questions
In 2022, Boeing reported total revenues of $66.6 billion, an increase from $62.3 billion in 2021. However, the company still incurred a net loss attributable to shareholders of $4.935 billion, an improvement from $4.202 billion in the prior year. The Defense, Space & Security segment saw a significant downturn, reporting an operating loss of $3.544 billion compared to a profit in the previous year, primarily due to charges on development programs. The Commercial Airplanes segment's loss from operations narrowed substantially.
Boeing faces ongoing challenges including supply chain disruptions, labor instability, and inflationary pressures, which impact production rates and profitability. Specific risks include delays in the certification and delivery of new aircraft models like the 777X and 737 MAX derivatives, potential order cancellations due to these delays, and the impact of geopolitical events such as the war in Ukraine on supply chains and customer demand. The Defense segment's profitability is also affected by charges on fixed-price development programs and U.S. government budget uncertainties.
Boeing's backlog remained strong at over $404 billion, indicating healthy long-term demand. The Commercial Airplanes segment is working to ramp up production rates for the 737 and gradually resume 787 deliveries, though these efforts are constrained by supply chain issues. The Global Services segment saw recovery in commercial services volume. The Defense, Space & Security segment anticipates stable demand, but faces headwinds from development program charges and potential U.S. government budget pressures.
The 737 MAX has been approved for operations in over 190 countries, with flights resuming in China in early 2023. However, uncertainty remains regarding the timing of final regulatory approvals for deliveries in China. The new 737-7 and 737-10 derivatives are undergoing FAA certification, with expected deliveries in 2023 and 2024, respectively. Boeing is working to address safety enhancements required by regulators for future MAX aircraft.