Boeing Releases Early Fourth Quarter Financial Findings – Jan 23, 2025
Boeing has shared its preliminary results for the fourth quarter, highlighting the impacts of the IAM work stoppage and agreement, as well as charges in the defense segment. The company is projected to report fourth-quarter revenue of $15.2 billion, a GAAP loss per share of ($5.46), and an operating cash flow of ($3.5) billion, with cash and investments in marketable securities totaling $26.3 billion at the quarter’s close.
Kelly Ortberg, Boeing’s president and CEO, acknowledged the challenges faced in the fourth quarter but noted the steps taken by the company to stabilize its business during this period. This included reaching an agreement with IAM-represented teammates and securing a successful capital raise to enhance the balance sheet. Production for the 737, 767, and 777/777X models has resumed, and the Boeing team is dedicated to the task ahead of rebuilding a prosperous future for the company.
The impact on Commercial Airplanes’ results will be evident due to the IAM work stoppage and agreement, resulting in lower deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs. The 777X program is expected to incur a pre-tax charge of $0.9 billion over the next several years, reflecting increased labor costs associated with finalizing the IAM agreement. Despite this, Boeing anticipates the first delivery of the 777-9 to occur in 2026, with Commercial Airplanes projecting fourth-quarter revenue of $4.8 billion and an operating margin of (43.9) percent.
Meanwhile, Defense, Space & Security is set to recognize pre-tax earnings charges of $1.7 billion across programs like KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25. Notably, the pre-tax charge of $0.8 billion on the KC-46A program reflects higher estimated manufacturing costs due to the impacts of the IAM work stoppage and agreement. The T-7A program will incur a pre-tax charge of $0.5 billion, mainly due to higher estimated costs on production lots scheduled for 2026 onwards. Defense, Space & Security is projected to report fourth-quarter revenue of $5.4 billion and an operating margin of (41.9) percent.
Boeing concludes its announcement with a reminder that the preliminary financial results are subject to change as management’s review continues. These estimates are considered forward-looking statements, with risks and uncertainties that may affect the final results once they are officially disclosed. Boeing has identified various factors that could potentially lead to divergences between these estimates and the actual financial outcomes, emphasizing the unpredictable and complex nature of the industry and market conditions in which they operate.
