Summary
Boeing Company (BA) reported a net loss attributable to shareholders of $1.026 billion ($1.73 per diluted share) for the six months ended June 30, 2022, a significant downturn from a net earning of $50 million ($0.09 per diluted share) in the same period of the prior year. This loss was driven by a broad operational performance decline, particularly within the Defense, Space & Security (BDS) segment, which experienced significant charges on development programs. Despite a decrease in total revenues to $30.672 billion from $32.215 billion year-over-year for the six-month period, Boeing continues to grapple with ongoing challenges including 787 production issues, the residual impacts of the 737 MAX grounding, supply chain disruptions, and inflationary pressures. While the company maintains a substantial backlog of $371.730 billion, the conversion of this backlog into revenue remains uncertain due to these persistent operational headwinds. The company's liquidity remains a focus, with cash and cash equivalents at $10.1 billion, supported by substantial unused borrowing capacity on its credit lines.
Financial Highlights
51 data points| Revenue | $16.68B |
| Cost of Revenue | $14.55B |
| Gross Profit | $2.13B |
| R&D Expenses | $698.00M |
| Operating Income | $780.00M |
| Net Income | $193.00M |
| EPS (Basic) | $0.32 |
| EPS (Diluted) | $0.32 |
| Shares Outstanding (Basic) | 593.70M |
| Shares Outstanding (Diluted) | 596.10M |
Key Highlights
- 1Net loss attributable to Boeing shareholders of $1.026 billion for the six months ended June 30, 2022, compared to a net gain of $50 million in the prior year period.
- 2Total revenues decreased by $1.543 billion to $30.672 billion for the six months ended June 30, 2022, compared to $32.215 billion in the prior year period, primarily due to lower revenues in the Defense, Space & Security segment.
- 3The Defense, Space & Security (BDS) segment reported a significant loss from operations of $858 million for the six months ended June 30, 2022, a sharp contrast to earnings of $1.363 billion in the prior year period, impacted by charges on development programs.
- 4The Commercial Airplanes (BCA) segment's loss from operations narrowed to $1.101 billion from $1.328 billion, aided by increased 737 MAX deliveries and lower abnormal production costs, though still significantly impacted by 787 production issues.
- 5Operating cash flow remained negative, with net cash used by operating activities of $3.135 billion for the six months ended June 30, 2022, compared to $3.870 billion in the prior year, highlighting ongoing operational challenges.
- 6The company's total backlog stood at $371.730 billion as of June 30, 2022, but management notes significant uncertainty regarding the timing of revenue conversion due to ongoing production and delivery challenges.
- 7Inventory levels increased, with commercial aircraft programs inventory rising due to a buildup of 787 and 777X aircraft, contributing to the cash outflow from operations.