Summary
Boeing Company (BA) reported a significant increase in net loss for the second quarter and first half of 2024 compared to the prior year, largely impacted by ongoing production issues and customer concessions primarily related to the 737 program. Total revenues declined across most segments, with Commercial Airplanes experiencing the steepest drop due to lower deliveries and the financial impact of the January 2024 grounding of the 737-9. While the Defense, Space & Security segment saw a modest revenue increase, it also recorded higher losses from operations due to increased charges on development programs. The Global Services segment remained a bright spot, showing revenue growth and stable operational earnings. The company also announced its agreement to acquire Spirit AeroSystems Holdings, Inc. in an all-stock transaction, expected to close mid-2025, which introduces both strategic opportunities and integration risks. Despite the operational challenges and increased losses, Boeing has secured new long-term debt financing and maintains substantial liquidity. However, recent credit rating downgrades reflect concerns about the company's ability to generate free cash flow and retire debt. Investors should closely monitor the company's progress in resolving production quality issues, the successful integration of Spirit AeroSystems, and the ongoing legal proceedings, particularly the plea agreement with the Department of Justice related to the 737 MAX accidents.
Financial Highlights
51 data points| Revenue | $16.87B |
| Cost of Revenue | $15.64B |
| Gross Profit | $1.23B |
| R&D Expenses | $954.00M |
| Operating Income | -$1.09B |
| Net Income | -$1.44B |
| EPS (Basic) | $-2.33 |
| EPS (Diluted) | $-2.33 |
| Shares Outstanding (Basic) | 616.30M |
| Shares Outstanding (Diluted) | 616.30M |
Key Highlights
- 1Net loss attributable to Boeing Shareholders widened significantly to $1.782 billion ($2.90 per share) for the first six months of 2024, compared to $563 million ($0.93 per share) in the same period of 2023.
- 2Total revenues decreased by $4.237 billion to $33.435 billion for the first six months of 2024, primarily driven by a $4.888 billion decline in the Commercial Airplanes segment due to lower deliveries and customer considerations.
- 3The Commercial Airplanes segment reported a loss from operations of $1.858 billion for the first six months of 2024, a significant increase from a $998 million loss in the prior year, impacted by production disruptions and 737-9 grounding.
- 4Boeing announced an agreement to acquire Spirit AeroSystems Holdings, Inc. in an all-stock transaction valued at approximately $4.7 billion, expected to close in mid-2025.
- 5Net cash used by operating activities was $7.285 billion for the first six months of 2024, a substantial increase from $2.557 billion provided in the same period of 2023, largely due to inventory build-up.
- 6The company issued $10 billion in fixed-rate senior notes and entered into a new $4 billion revolving credit agreement, increasing total debt to $57.9 billion as of June 30, 2024.
- 7Recent credit rating reviews by Moody's and S&P/Fitch have resulted in a negative outlook, reflecting concerns about the company's ability to improve free cash flow and manage debt.