Summary
Boeing's Q2 2015 10-Q filing reveals a revenue increase driven by strong performance in the Commercial Airplanes segment, which saw higher deliveries and a favorable mix. However, this growth was partially offset by a decline in the Defense, Space & Security (BDS) segment, impacted by lower revenues across its sub-segments. Net earnings for the quarter and year-to-date periods showed a decrease compared to the prior year, largely due to significant charges related to the KC-46A Tanker contract and higher tax expenses in the current year. The company continues to navigate a complex operating environment, including ongoing uncertainties in U.S. government defense spending and potential impacts from the expiration of the U.S. Export-Import Bank charter. Despite these challenges, Boeing's backlog remains substantial, providing visibility into future revenue streams. The company also actively managed its capital through share repurchases and dividend payments.
Financial Highlights
53 data points| Revenue | $24.54B |
| Cost of Revenue | $21.35B |
| Gross Profit | $3.19B |
| R&D Expenses | $800.00M |
| Operating Income | $1.68B |
| Net Income | $1.11B |
| EPS (Basic) | $1.61 |
| EPS (Diluted) | $1.59 |
| Shares Outstanding (Basic) | 691.20M |
| Shares Outstanding (Diluted) | 697.80M |
Key Highlights
- 1Total revenues increased by 10% year-to-date and 11% for the quarter, primarily driven by the Commercial Airplanes segment's higher deliveries and mix.
- 2Net earnings for the six months ended June 30, 2015, decreased to $2.45 billion from $2.62 billion in the prior year, impacted by a significant $835 million reach-forward loss on the KC-46A Tanker contract.
- 3The Defense, Space & Security (BDS) segment experienced a revenue decrease of 7% for the year-to-date period, with declines in all three of its sub-segments.
- 4Boeing's cash position decreased by $2.58 billion year-to-date, ending at $9.16 billion, with significant share repurchases totaling $4.5 billion during the period.
- 5The company's backlog remained robust at $479.2 billion as of June 30, 2015, although it saw a decrease from the end of 2014 due to deliveries exceeding new orders.
- 6Deferred production costs for the 787 program amounted to $27.7 billion, with a significant portion expected to be recovered from future orders.
- 7The effective income tax rate for the six months ended June 30, 2015, increased to 31.5% from 17.6% in the prior year, mainly due to the absence of prior-year tax benefits related to federal tax audit settlements.