Summary
Boeing Company (BA) reported its financial results for the nine months and third quarter ended September 30, 2021. The company continued to navigate challenges from the COVID-19 pandemic, 787 production issues, and lingering effects of the 737 MAX grounding. Despite these headwinds, total revenues for the nine months increased to $47.5 billion from $42.9 billion in the prior year, largely driven by higher deliveries in the Commercial Airplanes segment due to the return to service of the 737 MAX. However, the company still reported a net loss attributable to shareholders of $59 million for the nine-month period, an improvement from a loss of $3.5 billion in the same period of 2020. Liquidity remains a key focus, with net cash used by operating activities of $4.1 billion for the nine months, though this showed significant improvement compared to $14.4 billion in the prior year. The company ended the period with $9.8 billion in cash and cash equivalents and $10.2 billion in short-term investments. Management expressed confidence in its ability to fund operations for the foreseeable future through a combination of existing liquidity, access to credit facilities, and ongoing actions to improve cash flow. The company also provided an updated outlook for the commercial aviation market, expecting a return to 2019 travel levels by 2023-2024.
Financial Highlights
52 data points| Revenue | $15.28B |
| Cost of Revenue | $13.57B |
| Gross Profit | $1.71B |
| R&D Expenses | $575.00M |
| Operating Income | $329.00M |
| Net Income | -$109.00M |
| EPS (Basic) | $-0.19 |
| EPS (Diluted) | $-0.19 |
| Shares Outstanding (Basic) | 589.00M |
| Shares Outstanding (Diluted) | 588.60M |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2021, increased to $47.5 billion from $42.9 billion in the prior year, driven by higher Commercial Airplanes (BCA) and Defense, Space & Security (BDS) revenues.
- 2The company reported a net loss attributable to Boeing Shareholders of $59 million for the nine months ended September 30, 2021, a significant improvement from a net loss of $3.5 billion in the same period of 2020.
- 3Net cash used by operating activities improved to $4.1 billion for the nine months ended September 30, 2021, compared to $14.4 billion in the prior year, reflecting better working capital management and improved earnings.
- 4Commercial Airplanes segment saw revenue growth driven by increased 737 MAX deliveries following its recertification and return to service in various jurisdictions.
- 5Defense, Space & Security segment earnings from operations increased substantially, largely due to the absence of charges related to the KC-46A Tanker program in 2021.
- 6The company maintained a strong liquidity position with $9.8 billion in cash and cash equivalents and $10.2 billion in short-term investments as of September 30, 2021.
- 7Boeing continues to forecast a return of commercial air travel to 2019 levels in 2023-2024, with a long-term industry outlook projecting demand for approximately 43,610 new airplanes over the next 20 years.