Boeing Reports Third Quarter Results
ARLINGTON,
Va.,
Third Quarter 2024
-- Financials reflect impacts of the International Association of
Machinists and Aerospace Workers (IAM) work stoppage and previously
announced charges on commercial and defense programs
-- Revenue of $17.8 billion , GAAP loss per share of ($9.97 ) and core
(non-GAAP)* loss per share of ($10.44 )
-- Operating cash flow of ($1.3) billion and free cash flow of ($2.0)
billion (non-GAAP)*
-- Total company backlog of $511 billion , including over 5,400 commercial
airplanes
Table 1. Summary Third Quarter Nine Months Financial Results (Dollars in Millions, 2024 2023 Change 2024 2023 Change except per share data) Revenues$17,840 $18,104 (1)%$51,275 $55,776 (8)% GAAP Loss from ($5,761 ) ($808 ) NM ($6,937 ) ($1,056 ) NM operations Operating (32.3) % (4.5) % NM (13.5) % (1.9) % NM margins Net loss ($6,174 ) ($1,638 ) NM ($7,968 ) ($2,212 ) NM Basic loss ($9.97 ) ($2.70 ) NM ($12.91 ) ($3.64 ) NM per share Operating ($1,345 )$22 NM ($8,630 )$2,579 NM cash flow Non-GAAP* Core operating ($5,989 ) ($1,089 ) NM ($7,769 ) ($1,919 ) NM loss Core operating (33.6) % (6.0) % NM (15.2) % (3.4) % NM margins Core loss ($10.44 ) ($3.26 ) NM ($14.52 ) ($5.35 ) NM per share
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
"It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again," said
Table 2. Cash Flow Third Quarter Nine Months (Millions) 2024 2023 2024 2023 Operating cash flow ($1,345 )$22 ($8,630 )$2,579 Less additions to property, plant & ($611 ) ($332 ) ($1,582 ) ($1,096 ) equipment Free cash flow* ($1,956 ) ($310 ) ($10,212 )$1,483
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
Operating cash flow was
Table 3. Cash, Marketable Securities and Debt Balances Quarter End (Billions) 3Q 2024 2Q 2024 Cash$10.0 $10.9 Marketable securities1$0.5 $1.7 Total$10.5 $12.6 Consolidated debt$57.7 $57.9
1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities totaled
Total company backlog at quarter end was
Segment Results
Commercial Airplanes
Table 4. Commercial Third Quarter Nine Months Airplanes (Dollars in 2024 2023 Change 2024 2023 Change Millions) Deliveries 116 105 10% 291 371 (22)% Revenues$7,443 $7,876 (5)%$18,099 $23,420 (23)% Loss from ($4,021 ) ($678 ) NM ($5,879 ) ($1,676 ) NM operations Operating (54.0) % (8.6) % NM (32.5) % (7.2) % NM margins
Commercial Airplanes third quarter revenue of
The 787 program is currently producing at 4 per month and maintains plans to return to 5 per month by year end. In the quarter, Commercial Airplanes booked 49 net orders and delivered 116 airplanes, with backlog of over 5,400 airplanes valued at
Defense, Space & Security
Table 5. Defense, Third Quarter Nine Months Space & Security (Dollars in 2024 2023 Change 2024 2023 Change Millions) Revenues$5,536 $5,481 1%$18,507 $18,187 2% Loss from ($2,384 ) ($924 ) NM ($3,146 ) ($1,663 ) NM operations Operating (43.1) % (16.9) % NM (17.0) % (9.1) % NM margins
Defense, Space & Security third quarter revenue of
During the quarter, Defense, Space & Security delivered the first production MH-139A to the
Table 6. Global Third Quarter Nine Months Services (Dollars in 2024 2023 Change 2024 2023 Change Millions) Revenues$4,901 $4,812 2%$14,835 $14,278 4% Earnings from$834 $784 6%$2,620 $2,487 5% operations Operating 17.0 % 16.3 % 0.7 17.7 % 17.4 % 0.3 margins pts pts
During the quarter,
Additional Financial Information
Table 7. Additional Third Quarter Nine Months Financial Information (Dollars in Millions) 2024 2023 2024 2023 Revenues Unallocated items, ($40 ) ($65 ) ($166 ) ($109 ) eliminations and other Loss from operations Other unallocated items and ($418 ) ($271 ) ($1,364 ) ($1,067 ) eliminations FAS/CAS service cost$228 $281 $832 $863 adjustment Other income, net$265 $297 $790 $919 Interest and debt expense ($728 ) ($589 ) ($1,970 ) ($1,859 ) Effective tax rate 0.8 % (48.9) % 1.8 % (10.8) %
Other unallocated items and eliminations primarily reflects timing of allocations.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in
Core Operating Earnings/(loss), Core Operating Margin and Core Earnings/(loss) Per Share
Core operating earnings/(loss) is defined as GAAP
Earnings/(
l
oss) from operations
excluding the
FAS/CAS service cost adjustment.
The
FAS/CAS service cost adjustment
represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as Core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP
Diluted earnings/(loss) per share
excluding the net earnings/(loss) per share impact of the
FAS/CAS service cost adjustment
and
Non-operating pension and postretirement expenses
. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment . Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 for reconciliation of free cash flow to GAAP operating cash flow.
Boeing President and CEO
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, production quality issues, commercial airplane production rates, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; (4) our pending acquisition of Spirit AeroSystems Holdings, Inc. (Spirit), including the satisfaction of closing conditions in the expected timeframe or at all, (5) changing budget and appropriation levels and acquisition priorities of the
Additional information concerning these and other factors can be found in our filings with the
Contact: Investor Relations:Matt Welch orDavid Dufault BoeingInvestorRelations@boeing.com Communications:Michael Friedman media@boeing.com
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Nine months ended Three months ended
September 30 September 30
(Dollars in millions, except per 2024 2023 2024 2023
share data)
Sales of products $41,326 $46,661 $14,534 $15,060
Sales of services 9,949 9,115 3,306 3,044
Total revenues 51,275 55,776 17,840 18,104
Cost of products (43,384) (43,140) (18,413) (14,464)
Cost of services (8,293) (7,609) (2,934) (2,475)
Total costs and expenses (51,677) (50,749) (21,347) (16,939)
(402) 5,027 (3,507) 1,165
Income/(loss) from operating 59 45 (15) 28
investments, net
General and administrative expense (3,623) (3,633) (1,085) (1,043)
Research and development expense, net (2,976) (2,496) (1,154) (958)
Gain on dispositions, net 5 1
Loss from operations (6,937) (1,056) (5,761) (808)
Other income, net 790 919 265 297
Interest and debt expense (1,970) (1,859) (728) (589)
Loss before income taxes (8,117) (1,996) (6,224) (1,100)
Income tax benefit/(expense) 149 (216) 50 (538)
Net loss (7,968) (2,212) (6,174) (1,638)
Less: net loss attributable to (16) (13) (4) (2)
noncontrolling interest
Net loss attributable to Boeing ($7,952 ) ($2,199 ) ($6,170 ) ($1,636 )
Shareholders
Basic loss per share ($12.91 ) ($3.64 ) ($9.97 ) ($2.70 )
Diluted loss per share ($12.91 ) ($3.64 ) ($9.97 ) ($2.70 )
Weighted average diluted shares 616.1 605.0 618.8 607.2
(millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) September 30 December 31
2024 2023
Assets
Cash and cash equivalents $9,961 $12,691
Short-term and other investments 509 3,274
Accounts receivable, net 2,894 2,649
Unbilled receivables, net 9,356 8,317
Current portion of financing receivables, net 457 99
Inventories 83,341 79,741
Other current assets, net 2,918 2,504
Total current assets 109,436 109,275
Financing receivables and operating lease equipment, 321 860
net
Property, plant and equipment, net of accumulated 11,236 10,661
depreciation of $22,923 and $22,245
Goodwill 8,112 8,093
Acquired intangible assets, net 2,011 2,094
Deferred income taxes 44 59
Investments 1,030 1,035
Other assets, net of accumulated amortization of 5,505 4,935
$1,054 and $1,046
Total assets $137,695 $137,012
Liabilities and equity
Accounts payable $12,267 $11,964
Accrued liabilities 22,628 22,331
Advances and progress billings 57,931 56,328
Short-term debt and current portion of long-term 4,474 5,204
debt
Total current liabilities 97,300 95,827
Deferred income taxes 249 229
Accrued retiree health care 2,121 2,233
Accrued pension plan liability, net 6,097 6,516
Other long-term liabilities 2,314 2,332
Long-term debt 53,176 47,103
Total liabilities 161,257 154,240
Shareholders' equity:
Common stock, par value $5.00 – 1,200,000,000 5,061 5,061
shares authorized; 1,012,261,159 shares issued
Additional paid-in capital 10,925 10,309
Treasury stock, at cost - 394,465,404 and (48,564) (49,549)
402,746,136 shares
Retained earnings 19,299 27,251
Accumulated other comprehensive loss (10,273) (10,305)
Total shareholders' deficit (23,552) (17,233)
Noncontrolling interests (10) 5
Total equity (23,562) (17,228)
Total liabilities and equity $137,695 $137,012
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Nine months ended
September 30
(Dollars in millions) 2024 2023
Cash flows–operating activities:
Net loss ($7,968 ) ($2,212 )
Adjustments to reconcile net loss to net cash
(used)/provided by operating activities:
Non-cash items –
Share-based plans expense 310 548
Treasury shares issued for 401(k) contribution 1,315 1,204
Depreciation and amortization 1,327 1,380
Investment/asset impairment charges, net 48 12
Gain on dispositions, net (5) (1)
777X and 767 reach-forward losses 3,006
Other charges and credits, net 270 (25)
Changes in assets and liabilities –
Accounts receivable (275) (523)
Unbilled receivables (1,042) (547)
Advances and progress billings 1,666 2,963
Inventories (6,854) (940)
Other current assets (26) 707
Accounts payable 122 982
Accrued liabilities 327 (574)
Income taxes receivable, payable and deferred (282) 73
Other long-term liabilities (228) (254)
Pension and other postretirement plans (736) (785)
Financing receivables and operating lease equipment, net 258 472
Other 137 99
Net cash (used)/provided by operating activities (8,630) 2,579
Cash flows – investing activities:
Payments to acquire property, plant and equipment (1,582) (1,096)
Proceeds from disposals of property, plant and equipment 46 19
Acquisitions, net of cash acquired (50) (19)
Contributions to investments (1,751) (14,485)
Proceeds from investments 4,546 10,497
Supplier notes receivable (494) (162)
Repayments on supplier notes receivable 40
Purchase of distribution rights (88)
Other (14) 5
Net cash provided/(used) by investing activities 653 (5,241)
Cash flows – financing activities:
New borrowings 10,120 55
Debt repayments (4,824) (5,181)
Stock options exercised 45
Employee taxes on certain share-based payment arrangements (73) (52)
Other 15 2
Net cash provided/(used) by financing activities 5,238 (5,131)
Effect of exchange rate changes on cash and cash 8 (22)
equivalents
Net decrease in cash & cash equivalents, including (2,731) (7,815)
restricted
Cash & cash equivalents, including restricted, at beginning 12,713 14,647
of year
Cash & cash equivalents, including restricted, at end of 9,982 6,832
period
Less restricted cash & cash equivalents, included in 21 21
Investments
Cash & cash equivalents at end of period $9,961 $6,811
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Nine months ended Three months ended
September 30 September 30
(Dollars in millions) 2024 2023 2024 2023
Revenues:
Commercial Airplanes $18,099 $23,420 $7,443 $7,876
Defense, Space & Security 18,507 18,187 5,536 5,481
Global Services 14,835 14,278 4,901 4,812
Unallocated items, eliminations (166) (109) (40) (65)
and other
Total revenues $51,275 $55,776 $17,840 $18,104
Loss from operations:
Commercial Airplanes ($5,879 ) ($1,676 ) ($4,021 ) ($678 )
Defense, Space & Security (3,146) (1,663) (2,384) (924)
Global Services 2,620 2,487 834 784
Segment operating loss (6,405) (852) (5,571) (818)
Unallocated items, eliminations (1,364) (1,067) (418) (271)
and other
FAS/CAS service cost adjustment 832 863 228 281
Loss from operations (6,937) (1,056) (5,761) (808)
Other income, net 790 919 265 297
Interest and debt expense (1,970) (1,859) (728) (589)
Loss before income taxes (8,117) (1,996) (6,224) (1,100)
Income tax benefit/(expense) 149 (216) 50 (538)
Net loss (7,968) (2,212) (6,174) (1,638)
Less: net loss attributable to (16) (13) (4) (2)
noncontrolling interest
Net loss attributable to Boeing ($7,952 ) ($2,199 ) ($6,170 ) ($1,636 )
Shareholders
Research and development
expense, net:
Commercial Airplanes $1,852 $1,538 $779 $623
Defense, Space & Security 728 652 234 232
Global Services 103 84 36 30
Other 293 222 105 73
Total research and development $2,976 $2,496 $1,154 $958
expense, net
Unallocated items, eliminations
and other:
Share-based plans $118 ($33 ) $65 $5
Deferred compensation (100) (71) (51) 25
Amortization of previously (70) (71) (24) (24)
capitalized interest
Research and development (293) (222) (105) (73)
expense, net
Eliminations and other (1,019) (670) (303) (204)
unallocated items
Sub-total (included in Core (1,364) (1,067) (418) (271)
operating loss)
Pension FAS/CAS service cost 608 663 148 218
adjustment
Postretirement FAS/CAS service 224 200 80 63
cost adjustment
FAS/CAS service cost adjustment 832 863 $228 $281
Total ($532 ) ($204 ) ($190 ) $10
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Nine months ended Three months ended
September 30 September 30
Commercial 2024 2023 2024 2023
Airplanes
737 229 286 92 70
747 — 1 — —
767 15 17 6 8
777 11 17 4 8
787 36 50 14 19
Total 291 371 116 105
Defense, Space &
Security
AH-64 Apache 10 17 7 5
(New)
AH-64 Apache 24 38 11 9
(Remanufactured)
CH-47 Chinook 2 8 — 1
(New)
CH-47 Chinook 7 7 2 3
(Renewed)
F-15 Models 10 6 3 —
F/A-18 Models 5 16 1 3
KC-46 Tanker 10 4 5 3
MH-139 3 1 3 1
P-8 Models 4 7 1 2
T-7A Red 1 1 1 1
Hawk
Commercial — 3 — —
Satellites
Total1 76 108 34 28
1 Deliveries of new-build production units, including remanufactures and
modifications
Total backlog September December
(Dollars in 30 31
millions) 2024 2023
Commercial $427,733 $440,507
Airplanes
Defense, Space & 61,621 59,012
Security
Global Services 20,449 19,869
Unallocated
items, 706 807
eliminations and
other
Total backlog $510,509 $520,195
Contractual $489,325 $497,094
backlog
Unobligated 21,184 23,101
backlog
Total backlog $510,509 $520,195
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margin, and core loss per share with the most directly comparable GAAP financial measures of loss from operations, operating margin, and diluted loss per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, except Third Quarter 2024 Third Quarter 2023
per share data)
$ millions Per Share $ millions Per Share
Revenues $17,840 $18,104
Loss from operations (GAAP) (5,761) (808)
Operating margins (GAAP) (32.3) % (4.5) %
FAS/CAS service cost
adjustment:
Pension FAS/CAS service cost (148) (218)
adjustment
Postretirement FAS/CAS (80) (63)
service cost adjustment
FAS/CAS service cost (228) (281)
adjustment
Core operating loss (non-GAAP) ($5,989 ) ($1,089 )
Core operating margins (33.6) % (6.0) %
(non-GAAP)
Diluted loss per share (GAAP) ($9.97 ) ($2.70 )
Pension FAS/CAS service cost ($148 ) ($0.24 ) ($218 ) ($0.36 )
adjustment
Postretirement FAS/CAS (80) (0.13) (63) (0.10)
service cost adjustment
Non-operating pension (123) (0.20) (134) (0.23)
income
Non-operating (18) (0.03) (15) (0.02)
postretirement income
Provision for deferred 77 0.13 90 0.15
income taxes on adjustments 1
Subtotal of adjustments ($292 ) ($0.47 ) ($340 ) ($0.56 )
Core loss per share (non-GAAP) ($10.44 ) ($3.26 )
Weighted average diluted 618.8 607.2
shares (in millions)
1The income tax impact is calculated using theU.S. corporate statutory tax rate.
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margin, and core loss per share with the most directly comparable GAAP financial measures of loss from operations, operating margin, and diluted loss per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, except Nine Months 2024 Nine Months 2023
per share data)
$ millions Per Share $ millions Per Share
Revenues $51,275 $55,776
Loss from operations (GAAP) (6,937) (1,056)
Operating margins (GAAP) (13.5) % (1.9) %
FAS/CAS service cost
adjustment:
Pension FAS/CAS service cost (608) (663)
adjustment
Postretirement FAS/CAS (224) (200)
service cost adjustment
FAS/CAS service cost (832) (863)
adjustment
Core operating loss (non-GAAP) ($7,769 ) ($1,919 )
Core operating margins (15.2) % (3.4) %
(non-GAAP)
Diluted loss per share (GAAP) ($12.91 ) ($3.64 )
Pension FAS/CAS service cost ($608 ) ($0.99 ) ($663 ) ($1.10 )
adjustment
Postretirement FAS/CAS (224) (0.36) (200) (0.33)
service cost adjustment
Non-operating pension (368) (0.60) (402) (0.66)
income
Non-operating (55) (0.09) (44) (0.07)
postretirement income
Provision for deferred 264 0.43 275 0.45
income taxes on adjustments 1
Subtotal of adjustments ($991 ) ($1.61 ) ($1,034 ) ($1.71 )
Core loss per share (non-GAAP) ($14.52 ) ($5.35 )
Weighted average diluted 616.1 605.0
shares (in millions)
1The income tax impact is calculated using theU.S. corporate statutory tax rate.
SOURCE: Boeing
