10-QPeriod: Q1 FY2025

BOEING CO Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 23, 2025For Securities:BABA-PA

Summary

Boeing's first quarter 2025 results show a significant turnaround from the prior year, with total revenues increasing to $19.5 billion from $16.6 billion in Q1 2024. This growth was primarily driven by a substantial increase in Commercial Airplanes (BCA) revenue, which surged due to higher deliveries and the absence of 737-9 customer considerations. Despite revenue growth, the company reported a net loss attributable to Boeing shareholders of $37 million, or $0.16 per diluted share, compared to a loss of $343 million ($0.56 per share) in the prior year. This improvement in net loss reflects reduced operating losses in the Commercial Airplanes segment and increased earnings in Global Services, partially offset by a slight decrease in Defense, Space & Security earnings. The company's liquidity remains a key focus, with cash and cash equivalents at $10.1 billion, and a decrease in net cash used by operating activities to $1.6 billion from $3.4 billion in the prior year. This improvement was driven by higher commercial airplane deliveries, lower customer considerations, and working capital management. However, significant investments in inventory and ongoing production challenges continue to pressure cash flows. The pending acquisition of Spirit AeroSystems remains a critical development, expected to close mid-2025, subject to regulatory approvals. The company also announced a significant divestiture from its Global Services segment on April 22, 2025, selling portions of its Digital Aviation Solutions business for $10.55 billion to focus on core operations.

Financial Highlights

50 data points
Beta

Revenue

$19.50B

12.4% Gross Margin

Net Income

-$37.00M

-0.2% Net Margin

EPS (Diluted)

$-0.16

Total Assets

$156.49B

Cash & Equivalents

$10.14B

Free Cash Flow

-$2.29B

Financial Statements
Beta
Revenue$19.50B
Cost of Revenue$17.08B
Gross Profit$2.42B
R&D Expenses$844.00M
Operating Income$461.00M
Net Income-$37.00M
EPS (Basic)$-0.16
EPS (Diluted)$-0.16
Shares Outstanding (Basic)753.40M
Shares Outstanding (Diluted)753.40M

Key Highlights

  • 1Total revenues increased by 17.7% to $19.5 billion in Q1 2025, primarily driven by a strong rebound in the Commercial Airplanes segment.
  • 2Net loss attributable to Boeing shareholders narrowed significantly to $37 million ($0.16/share) from $343 million ($0.56/share) in Q1 2024, indicating improved operational performance.
  • 3Commercial Airplanes segment revenue more than doubled to $8.1 billion, driven by increased deliveries and the absence of 737-9 customer considerations.
  • 4Defense, Space & Security revenue saw a decline of 9.4% to $6.3 billion, influenced by lower volumes and the absence of a prior-year contract modification.
  • 5Net cash used by operating activities decreased by $1.8 billion to $1.6 billion, largely due to improved inventory management and higher commercial deliveries.
  • 6The company announced a significant divestiture of its Digital Aviation Solutions business for $10.55 billion, expected to close in late 2025, to focus on core operations.
  • 7The acquisition of Spirit AeroSystems is progressing, with an expected closing in mid-2025, subject to regulatory approvals.

Frequently Asked Questions

The primary driver for the increase in revenue was the Commercial Airplanes (BCA) segment, which saw its revenue more than double to $8.1 billion. This was due to higher aircraft deliveries and the absence of customer considerations related to the 737-9 incidents experienced in the prior year.

Although the net loss attributable to Boeing shareholders significantly narrowed to $37 million from $343 million in the prior year, it remains a loss due to ongoing operational challenges, production rate adjustments aimed at improving quality, and significant program costs, particularly within the Commercial Airplanes and Defense, Space & Security segments. The company is still managing the effects of production issues and supply chain disruptions.

Boeing entered into an agreement to acquire Spirit AeroSystems on June 30, 2024. The transaction is structured as an all-stock deal and is expected to close in mid-2025, pending the satisfaction of customary closing conditions, including regulatory approvals. The acquisition is subject to certain extensions of the Outside Date, currently June 30, 2025.

Boeing is implementing a comprehensive safety and quality plan, which includes investing in workforce training, simplifying processes, eliminating defects, and enhancing its safety and quality culture. The company has also slowed production rates for certain aircraft to address quality issues and has been working closely with the FAA on its safety and quality management systems. These efforts are ongoing and are critical for future production rate increases and certifications.