01—Abstract
Summary
Summary of the 10-K filed January 31, 2024. Cited figures are marked; the original filing is the authoritative source.
Boeing's 2023 10-K highlights a year of revenue growth, driven primarily by increased deliveries in the Commercial Airplanes (BCA) segment, particularly the 787, and strong performance in Global Services (BGS).
However, the company reported a net loss attributable to shareholders of $2.22 billiona, a notable improvement from the prior year's $4.93 billion net loss, but still indicative of ongoing challenges. The Defense, Space & Security (BDS) segment continues to face significant losses, primarily due to charges on fixed-price development programs, though the magnitude of these charges lessened compared to 2022.
The company also experienced an increase in research and development expenses, particularly on the 777X program. Investors should note the significant backlog of $520 billionb, which signals future revenue potential, but also the ongoing risks associated with production quality issues, supply chain disruptions, and regulatory scrutiny, particularly following the January 2024 Alaska Airlines 737-9 incident and the subsequent FAA investigation into Boeing's quality control systems.
02—Key points
Key Highlights
- Boeing reported a net loss attributable to shareholders of $2.22 billion for 2023, an improvement from $4.93 billion in 2022, but still a loss.
- Total revenues increased to $77.79 billion in 2023, up from $66.61 billion in 2022, driven by higher deliveries across all segments, especially Commercial Airplanes (BCA).
- The Commercial Airplanes segment saw revenues increase by $7.87 billion, largely due to higher 787 deliveries.
- The Defense, Space & Security (BDS) segment incurred a loss from operations of $1.76 billion, an improvement from $3.54 billion in 2022, though still reporting losses on major fixed-price development programs.
- The company's backlog grew significantly to $520.2 billion by the end of 2023.
- The Federal Aviation Administration (FAA) initiated an investigation into Boeing's quality control system following the January 5, 2024, Alaska Airlines incident involving a 737-9 aircraft, leading to increased FAA oversight and a halt on production rate increases for the 737 MAX.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2023, Boeing Co lost $0.03.
- Revenue$77.79B100.0%
- Cost of revenue−$70.07B90.1%
- Gross profit$7.72B9.9%
- Operating costs−$8.50B10.9%
- Operating income−$773.0M1.0%
- Interest, other & tax−$1.45B1.9%
- Net income−$2.22B2.9%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed January 31, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $77.79B$66.61B | +16.8% |
| Cost of Revenue | $70.07B$63.08B | +11.1% |
| Gross Profit | $7.72B$3.53B | +118.8% |
| R&D Expenses | $3.38B$2.85B | +18.4% |
| Operating Income | -$773.00M-$3.52B | +78.0% |
| Net Income | -$2.22B-$4.93B | +55.0% |
| EPS (Basic) | $-3.67$-8.30 | +55.8% |
| EPS (Diluted) | $-3.67$-8.30 | +55.8% |
| Shares Outstanding (Basic) | 605.80M594.90M | +1.8% |
| Shares Outstanding (Diluted) | 605.80M594.90M | +1.8% |
05—Questions
Frequently Asked Questions
What were Boeing's key financial results for 2023?
Boeing reported a net loss of $2.22 billion, or $3.67 per share, for 2023, an improvement from the prior year's net loss. Total revenues increased to $77.79 billion, driven by higher aircraft deliveries and strong performance in Global Services.
What are the main challenges Boeing is facing?
Boeing is facing challenges including ongoing supply chain disruptions, labor instability, inflationary pressures, and significant charges on fixed-price development programs, particularly within the Defense, Space & Security segment. Furthermore, recent quality control issues and regulatory scrutiny, especially concerning the 737 MAX program following the Alaska Airlines incident, pose significant operational and financial risks.
How is the regulatory environment impacting Boeing?
The FAA has increased its oversight of Boeing's quality control systems, particularly for the 737 MAX production line, following an incident in early 2024. The FAA has stated it will not approve production rate increases for the 737 MAX until Boeing demonstrates full compliance, which could impact delivery schedules and future growth.
What is the outlook for Boeing's different business segments?
The Commercial Airplanes segment is benefiting from recovered air travel demand, though production quality and certification delays for new models like the 777X and 737-7/10 present risks. The Defense, Space & Security segment continues to be impacted by losses on fixed-price development programs. The Global Services segment is expected to see continued strong performance due to the recovery in the commercial airline industry.
06—Continue