Boeing Releases Early Fourth Quarter Financial Results – Investors
Boeing announced that its financial results for the fourth quarter will reflect impacts from the IAM work stoppage and agreement, charges related to certain Defense, Space & Security programs, and costs tied to last year’s workforce reductions. The company anticipates reporting 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 end of the quarter.
Despite facing challenges, Boeing’s president and CEO, Kelly Ortberg, emphasized that critical steps were taken to stabilize the business during the quarter. These steps included reaching an agreement with IAM-represented employees and conducting a successful capital raise to improve the company’s balance sheet. Production of the 737, 767, and 777/777X models has been restarted, with an emphasis on moving forward to create a new future for Boeing.
Within the Commercial Airplanes sector, results will reflect repercussions of 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. A pre-tax charge of $0.9 billion for the 777X program reflects higher estimated labor costs linked to the IAM agreement and will be spread over several years. Boeing still plans to deliver the 777-9 for the first time in 2026. Commercial Airplanes is projected to report fourth-quarter revenue of $4.8 billion with an operating margin of (43.9) percent.
In the realm of Defense, Space & Security, pre-tax earnings charges totaling $1.7 billion are expected on programs such as KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25. The KC-46A program’s pre-tax charge of $0.8 billion is due to higher estimated manufacturing costs influenced by the IAM work stoppage and agreement. Meanwhile, the T-7A program faces a pre-tax charge of $0.5 billion attributed to increased estimated costs for production lots beyond 2026. For Defense, Space & Security, fourth-quarter revenue is projected to be $5.4 billion with an operating margin of (41.9) percent.
Boeing notes that the preliminary estimated financial results mentioned are subject to change due to ongoing management reviews. The company cautions that these estimates are preliminary and unaudited, and final results may vary. Forward-looking statements concerning future financial conditions and operating results are reliant on expectations and assumptions that may not be entirely accurate. Risks and uncertainties could lead to significant deviations from these forward-looking statements, including factors like general economic conditions, regulatory changes, customer reliance, production issues, competition, supply chain dependence, labor disruptions, and more.
Boeing advises that additional information on these factors can be found in its filings with the Securities and Exchange Commission. The company stresses its commitment to regularly update or revise forward-looking statements when necessary.
