Summary
Boeing Company (BA) reported its first quarter 2021 financial results, showing continued challenges from the COVID-19 pandemic and the residual impacts of the 737 MAX grounding. Total revenues decreased to $15.2 billion from $16.9 billion in the prior year's quarter, primarily driven by lower Commercial Airplanes (BCA) and Global Services (BGS) revenues. The company reported a net loss attributable to shareholders of $537 million ($0.92 per share) for the quarter, an improvement from the $628 million loss ($1.11 per share) in the first quarter of 2020. Despite the ongoing difficulties, the Defense, Space & Security (BDS) segment showed revenue growth. Liquidity remains a key focus, with net cash used by operating activities at $3.4 billion for the quarter. Boeing took steps to manage its cash position, including issuing new debt and repaying existing loans, resulting in a total debt balance of $63.6 billion. The company's outlook for commercial air travel recovery is still projected for 2023-2024, with continued uncertainty regarding the pace and extent of recovery. Management is actively pursuing business transformation initiatives to improve efficiency and resilience.
Financial Highlights
51 data points| Revenue | $15.22B |
| Cost of Revenue | $13.81B |
| Gross Profit | $1.41B |
| R&D Expenses | $499.00M |
| Operating Income | -$83.00M |
| Net Income | -$537.00M |
| EPS (Basic) | $-0.92 |
| EPS (Diluted) | $-0.92 |
| Shares Outstanding (Basic) | 585.00M |
| Shares Outstanding (Diluted) | 585.00M |
Key Highlights
- 1Total revenues declined by 10% year-over-year to $15.2 billion, largely due to lower sales in the Commercial Airplanes and Global Services segments.
- 2The company reported a net loss attributable to Boeing shareholders of $537 million, an improvement from the $628 million loss in the same period last year, resulting in a diluted loss per share of $0.92.
- 3Defense, Space & Security (BDS) segment revenues increased by 19% to $7.2 billion, driven by the KC-46A Tanker program and favorable contract adjustments.
- 4Net cash used in operating activities was $3.4 billion, reflecting continued inventory build-up in commercial aircraft programs, particularly the 787.
- 5Boeing issued $9.8 billion in new debt and used the proceeds to repay outstanding term loans, maintaining its total debt balance at $63.6 billion.
- 6The 737 MAX program saw increased deliveries as more jurisdictions approved its return to service, though the aircraft remains grounded in some non-U.S. jurisdictions.
- 7Inventory levels, particularly for the 787 program, increased due to production issues and rework, impacting cash flow.