Summary
Boeing Co. (BA) reported a net loss of $7.95 billion for the nine months ended September 30, 2024, a significant increase from a net loss of $2.20 billion in the same period last year. This deterioration in financial performance is primarily driven by substantial operating losses in the Commercial Airplanes segment, exacerbated by production slowdowns, quality control issues stemming from the January 2024 Alaska Airlines incident, and ongoing supply chain constraints. The recent work stoppage by the International Association of Machinists and Aerospace Workers (IAM 751) has further impacted production and deliveries, leading to significant cash outflows from operations. Despite these challenges, the company has secured substantial liquidity, including a $10 billion supplemental credit agreement and $10 billion in cash and short-term investments. Boeing is actively pursuing cost-saving measures, including workforce reductions. The planned acquisition of Spirit AeroSystems is progressing, although it is subject to regulatory and stockholder approvals, with an expected closing in mid-2025. Investors should closely monitor the resolution of the IAM 751 strike, progress on quality improvements, and the successful integration of Spirit AeroSystems, as these factors will be critical to Boeing's future financial performance and operational stability.
Financial Highlights
51 data points| Revenue | $17.84B |
| Cost of Revenue | $21.35B |
| Gross Profit | -$3.51B |
| R&D Expenses | $1.15B |
| Operating Income | -$5.76B |
| Net Income | -$6.17B |
| EPS (Basic) | $-9.97 |
| EPS (Diluted) | $-9.97 |
| Shares Outstanding (Basic) | 618.60M |
| Shares Outstanding (Diluted) | 618.60M |
Key Highlights
- 1Significant increase in net loss to $7.95 billion for the nine months ended September 30, 2024, compared to $2.20 billion in the prior year period.
- 2Commercial Airplanes segment reported a substantial operating loss of $5.88 billion for the nine months, significantly impacted by production slowdowns, quality issues, and supply chain constraints.
- 3The IAM 751 work stoppage has led to a pause in production of key commercial aircraft models and is significantly impacting deliveries and cash flows.
- 4Company secured $10 billion in liquidity through a new supplemental credit agreement, and maintains $10 billion in cash and short-term investments.
- 5Planned acquisition of Spirit AeroSystems is progressing with an expected closing in mid-2025, contingent on regulatory and stockholder approvals.
- 6Ongoing significant investment in research and development, particularly for the 777X program, contributing to increased expenses.
- 7Concerns regarding credit ratings were highlighted, with Moody's downgrading ratings and both Moody's and S&P placing ratings on review for further downgrade.