Summary
Boeing Co. (BA) reported a net loss of $574 million for the first six months of 2023, a significant improvement from the $1,082 million net loss in the same period of 2022. This improvement was driven by increased revenues across all segments, particularly Commercial Airplanes (BCA) due to higher 787 and 737 deliveries, and a reduction in charges on development programs within Defense, Space & Security (BDS). Despite the improved top-line performance and reduced net loss, the company continues to grapple with challenges. Operating margins remain negative for the consolidated entity. BCA reported a substantial operating loss, impacted by abnormal production costs on the 787 and 777X programs. While BDS saw reduced losses compared to the prior year, it incurred significant losses on development programs. Global Services (BGS) was the primary driver of profitability, showing strong earnings growth. Liquidity remains a concern, with cash and cash equivalents decreasing significantly from the prior year-end, although the company highlights available borrowing capacity. The company's substantial backlog provides a degree of visibility, but risks related to supply chain disruptions, production rate increases, and program delays, particularly for the 737 MAX and 777X, could impact future revenue realization and profitability.
Financial Highlights
51 data points| Revenue | $19.75B |
| Cost of Revenue | $17.81B |
| Gross Profit | $1.94B |
| R&D Expenses | $797.00M |
| Operating Income | -$99.00M |
| Net Income | -$149.00M |
| EPS (Basic) | $-0.25 |
| EPS (Diluted) | $-0.25 |
| Shares Outstanding (Basic) | 605.20M |
| Shares Outstanding (Diluted) | 605.20M |
Key Highlights
- 1Total revenues increased by 22.8% to $37.7 billion for the first six months of 2023 compared to $30.7 billion in the prior year, driven by strong performance across all segments.
- 2Net loss attributable to shareholders narrowed to $574 million for the first six months of 2023, an improvement from $1,082 million in the same period of 2022.
- 3Commercial Airplanes (BCA) segment revenues increased significantly, primarily due to higher 787 and 737 deliveries, but the segment continued to report operating losses ($998 million for the six months).
- 4Defense, Space & Security (BDS) segment revenues saw an increase, and its operating loss narrowed, benefiting from lower charges on development programs.
- 5Global Services (BGS) segment demonstrated robust growth in both revenues and operating earnings, driven by commercial and government services.
- 6Cash and cash equivalents decreased to $7.3 billion at June 30, 2023, from $14.6 billion at December 31, 2022, though the company notes available borrowing capacity.
- 7The company's total backlog increased to $439.6 billion, providing significant future revenue visibility, but with uncertainties regarding delivery timing for key programs like the 737 and 777X.