Summary
Boeing's Q2 2021 report shows a significant turnaround from the prior year, with net earnings attributable to shareholders reaching $50 million ($0.09 per diluted share) compared to a loss of $3,004 million ($5.31 per diluted share) in the same period of 2020. Total revenues increased by 12% year-over-year to $16.998 billion for the quarter, driven primarily by higher deliveries in the Commercial Airplanes (BCA) segment as the 737 MAX returned to service in more jurisdictions, and strong performance in Defense, Space & Security (BDS). Despite the improved profitability, the company continues to navigate significant challenges. Net cash used by operating activities for the first six months of 2021 was $3.9 billion, indicating ongoing cash burn. The company's liquidity remains a key focus, with substantial unused borrowing capacity available. While the 737 MAX situation is improving with increased deliveries, certain non-U.S. jurisdictions still prohibit its operation. Additionally, production issues with the 787 program have led to a pause in deliveries and increased inventory. Overall, the report signals a recovery in revenue and a return to profitability, largely due to increased aircraft deliveries. However, investors should remain aware of the ongoing operational challenges, inventory build-up, and the continued impact of the pandemic on the aerospace industry, which contribute to negative operating cash flow.
Financial Highlights
51 data points| Revenue | $17.00B |
| Cost of Revenue | $14.59B |
| Gross Profit | $2.41B |
| R&D Expenses | $497.00M |
| Operating Income | $1.02B |
| Net Income | $587.00M |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $1.00 |
| Shares Outstanding (Basic) | 587.50M |
| Shares Outstanding (Diluted) | 589.80M |
Key Highlights
- 1Boeing reported a net profit of $50 million for Q2 2021, a substantial improvement from a net loss of $3,004 million in Q2 2020.
- 2Total revenues increased by 12.1% to $16.998 billion for the quarter, driven by higher deliveries in Commercial Airplanes and Defense, Space & Security segments.
- 3The Commercial Airplanes segment saw a significant reduction in operating loss, primarily due to higher 737 MAX deliveries and customer considerations in the prior year.
- 4Defense, Space & Security segment's operating earnings increased substantially, benefiting from higher program revenues and the absence of charges seen in the prior year.
- 5Despite improved earnings, the company utilized $3.9 billion in cash from operating activities in the first six months of 2021.
- 6The company's inventory of 737 MAX and 787 aircraft remains elevated, with ongoing production and delivery challenges impacting cash flow.
- 7Boeing maintained significant liquidity, with $8.3 billion in cash and $13.1 billion in short-term investments, and $14.8 billion in unused borrowing capacity at the end of the quarter.