Summary
Boeing's third-quarter 2023 results show a continued trend of revenue growth across all segments, driven by higher aircraft deliveries and commercial services. Despite this top-line improvement, the company reported a net loss attributable to shareholders of $2.2 billion for the nine months ended September 30, 2023, and $1.6 billion for the third quarter. This loss is largely influenced by ongoing challenges in the Defense, Space & Security (BDS) segment, particularly with fixed-price development programs experiencing significant unfavorable contract adjustments. The Commercial Airplanes (BCA) segment also faces headwinds from production issues and abnormal production costs, notably on the 787 and 777X programs, though deliveries have increased. Operationally, Boeing saw improved cash flow from operating activities, reaching $2.6 billion for the first nine months of 2023, a substantial increase from the prior year. However, investing activities used more cash, and financing activities also saw increased outflows due to debt repayments. The company's liquidity remains strong with $6.8 billion in cash and short-term investments, and $10 billion in unused borrowing capacity. Management is focused on stabilizing the supply chain, increasing production rates, and managing program costs to return to profitability.
Financial Highlights
52 data points| Revenue | $18.10B |
| Cost of Revenue | $16.94B |
| Gross Profit | $1.17B |
| R&D Expenses | $958.00M |
| Operating Income | -$808.00M |
| Net Income | -$1.64B |
| EPS (Basic) | $-2.70 |
| EPS (Diluted) | $-2.70 |
| Shares Outstanding (Basic) | 606.90M |
| Shares Outstanding (Diluted) | 606.90M |
Key Highlights
- 1Total revenues increased by 19% to $55.8 billion for the first nine months of 2023 and by 13% to $18.1 billion for the third quarter, driven by higher deliveries across all segments.
- 2Despite revenue growth, Boeing reported a net loss attributable to shareholders of $2.2 billion for the nine months ended September 30, 2023, and $1.6 billion for the third quarter.
- 3The Defense, Space & Security (BDS) segment continued to be a drag on profitability, with a loss from operations of $1.7 billion for the nine months and $0.9 billion for the quarter, significantly impacted by unfavorable cumulative contract adjustments on development programs.
- 4Commercial Airplanes (BCA) segment experienced higher deliveries of 787 and 737 aircraft, contributing to revenue growth, but still reported a loss from operations of $1.7 billion for the nine months and $0.7 billion for the quarter, burdened by abnormal production costs.
- 5Global Services (BGS) remained the sole profitable segment, with earnings from operations of $2.5 billion for the nine months and $0.8 billion for the quarter, driven by strong commercial services revenue.
- 6Operating cash flow improved significantly to $2.6 billion for the nine months ended September 30, 2023, from $0.1 billion in the prior year.
- 7The company's total backlog increased to $469.2 billion as of September 30, 2023, indicating strong future demand, although conversion to revenue remains subject to production ramp-up and delivery timelines.