Boeing Reports Second Quarter Results

Rhea-AI Summary

Boeing reported second quarter 2024 results, with revenue of $16.9 billion, a GAAP loss per share of ($2.33), and core loss per share of ($2.90). Key highlights include:

- Submitted comprehensive safety and quality plan to FAA
- Announced agreement to acquire Spirit AeroSystems
- Operating cash flow of ($3.9) billion
- Total company backlog of $516 billion
- Commercial Airplanes delivered 92 airplanes
- Defense, Space & Security recorded $1.0 billion in losses on fixed-price programs
- Global Services revenue increased 3% to $4.9 billion

Boeing CEO Dave Calhoun stated the company is making progress on strengthening quality management and positioning for the future, despite a challenging quarter. The 737 program plans to increase production to 38 per month by year-end, while the 787 program aims to return to 5 per month.

Positive

• Agreement to acquire Spirit AeroSystems, expected to close mid-2025
• Total company backlog of $516 billion, including over 5,400 commercial airplanes
• 737 program plans to increase production to 38 per month by year end
• 787 program plans to return to 5 per month by year end
• 777X program began FAA certification flight testing
• Global Services revenue increased 3% to $4.9 billion with 17.8% operating margin

Negative

• Revenue decreased 15% to $16.9 billion
• GAAP loss per share of ($2.33) and core loss per share of ($2.90)
• Operating cash flow of ($3.9) billion
• Commercial Airplanes deliveries decreased 32% to 92 airplanes
• Defense, Space & Security recorded $1.0 billion in losses on fixed-price development programs
• Debt increased to $57.9 billion due to issuance of new debt

Insights

Financial Analyst

Boeing's Q2 2024 results paint a challenging picture for the aerospace giant. Revenue declined 15% year-over-year to $16.9 billion, while the company reported a GAAP loss per share of $2.33 and a core (non-GAAP) loss per share of $2.90. These figures significantly underperformed expectations, primarily due to lower commercial delivery volume and losses on fixed-price defense development programs.

The Commercial Airplanes segment was particularly hard-hit, with revenue plummeting 32% to $6.0 billion and an operating margin of -11.9%. This reflects not only lower deliveries but also higher period costs, including increased R&D expenses. The Defense, Space & Security segment also struggled, posting a 15.2% operating loss margin, largely due to a $1.0 billion loss on fixed-price development programs.

On a more positive note, the Global Services segment showed resilience with a 3% revenue increase and a healthy 17.8% operating margin. However, this wasn't enough to offset the challenges in other segments.

The company's cash position is concerning, with operating cash flow at -$3.9 billion and free cash flow at -$4.3 billion. While Boeing increased its cash and marketable securities to $12.6 billion, this was primarily due to a $10.0 billion debt issuance, pushing total debt to $57.9 billion.

Looking ahead, Boeing's plans to increase 737 production to 38 per month by year-end and return 787 production to 5 per month are critical for recovery. The announced acquisition of Spirit AeroSystems, expected to close mid-2025, could help streamline operations but also presents integration challenges.

Overall, these results underscore the ongoing difficulties Boeing faces in its post-737 MAX crisis recovery, compounded by broader industry challenges. Investors should closely monitor the company's progress on its safety and quality initiatives, as well as its ability to ramp up production and manage costs in the coming quarters.

Aerospace Industry Expert

Boeing's Q2 2024 results reveal deep-seated challenges across its core business segments. The 32% drop in Commercial Airplanes deliveries to just 92 units is particularly alarming. This suggests ongoing production issues and potentially waning demand, which could have ripple effects throughout the aerospace supply chain.

The gradual increase in 737 production is a positive sign, but the target of 38 per month by year-end seems ambitious given current headwinds. The 777X program's commencement of FAA certification flight testing is a important milestone, but it's important to note that this comes after significant delays.

In the defense sector, the $1.0 billion loss on fixed-price development programs is concerning. The $391 million loss on the KC-46A program, attributed to commercial production slowdown and supply chain constraints, highlights the interconnectedness of Boeing's commercial and defense businesses. This could potentially impact future contract bids and negotiations with the Department of Defense.

The planned acquisition of Spirit AeroSystems is a strategic move that could help Boeing regain control over critical parts of its supply chain. However, integrating such a large entity ($4.7 billion in revenue in 2023) will be complex and could distract from other pressing issues.

Boeing's submission of a comprehensive safety and quality plan to the FAA is important for rebuilding trust. However, the effectiveness of this plan and its impact on production rates and costs remain to be seen.

The aerospace industry is at a critical juncture, with pressures from sustainability requirements, geopolitical tensions and evolving travel patterns. Boeing's ability to navigate these challenges while addressing its internal issues will be pivotal for its long-term competitiveness in both commercial and defense markets.

Investment Risk Analyst

Boeing's Q2 2024 results highlight several significant risk factors for investors. The company's negative free cash flow of $4.3 billion is particularly concerning, as it indicates ongoing liquidity pressures. While Boeing has bolstered its cash position through debt issuance, this has pushed total debt to a substantial $57.9 billion, increasing financial leverage and potential interest rate sensitivity.

The persistent losses in the Commercial Airplanes and Defense, Space & Security segments point to structural issues that may take considerable time and resources to address. The -11.9% operating margin in Commercial Airplanes suggests that even as deliveries increase, profitability remains elusive. This could indicate pricing pressures or higher-than-expected costs in ramping up production.

Regulatory risk remains high, as evidenced by the ongoing FAA scrutiny and the recent $244 million fine agreement with the U.S. Department of Justice. Any further safety issues or regulatory actions could significantly impact production rates and financial performance.

The planned acquisition of Spirit AeroSystems, while potentially beneficial in the long term, introduces integration risk and may strain financial resources in the near term. Investors should monitor the progress of this acquisition and its impact on Boeing's balance sheet and operational efficiency.

Market risks are also notable. Any global economic slowdown could impact airline demand for new aircraft, potentially affecting Boeing's large $437 billion commercial backlog. Additionally, geopolitical tensions could influence defense spending patterns and international sales.

On the positive side, the Global Services segment's stable performance provides some diversification. However, its 3% growth isn't sufficient to offset weaknesses in other areas.

Investors should carefully weigh these risks against Boeing's potential for recovery and long-term market position. The company's ability to execute its safety and quality initiatives, manage costs and successfully ramp up production will be critical in restoring investor confidence and financial stability.

ARLINGTON, Va., July 31, 2024 /PRNewswire/ --

Second Quarter 2024

• Submitted comprehensive safety and quality plan to the Federal Aviation Administration
• Announced agreement to acquire Spirit AeroSystems in July; transaction expected to close mid-2025
• Revenue of $16.9 billion, GAAP loss per share of ($2.33) and core (non-GAAP)* loss per share of ($2.90)
• Operating cash flow of ($3.9) billion and free cash flow of ($4.3) billion (non-GAAP)*
• Total company backlog of $516 billion, including over 5,400 commercial airplanes

Table 1. Summary Financial Results						Second Quarter																		First Half
(Dollars in Millions, except per share data)						2024						2023						Change						2024						2023						Change
Revenues						$16,866						$19,751						(15) %						$33,435						$37,672						(11) %
GAAP
Loss from operations						($1,090)						($99)						NM						($1,176)						($248)						NM
Operating margins						(6.5)		%				(0.5)		%				NM						(3.5)		%				(0.7)		%				NM
Net loss						($1,439)						($149)						NM						($1,794)						($574)						NM
Loss per share						($2.33)						($0.25)						NM						($2.90)						($0.93)						NM
Operating cash flow						($3,923)						$2,875						NM						($7,285)						$2,557						NM
Non-GAAP*
Core operating loss						($1,392)						($390)						NM						($1,780)						($830)						NM
Core operating margins						(8.3)		%				(2.0)		%				NM						(5.3)		%				(2.2)		%				NM
Core loss per share						($2.90)						($0.82)						NM						($4.04)						($2.08)						NM

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."

The Boeing Company [NYSE: BA] recorded second quarter revenue of $16.9 billion, GAAP loss per share of ($2.33) and core loss per share (non-GAAP)* of ($2.90) (Table 1). Boeing reported operating cash flow of ($3.9) billion and free cash flow of ($4.3) billion (non-GAAP)*. Results primarily reflect lower commercial delivery volume and losses on fixed-price defense development programs.

"Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future," said Dave Calhoun, Boeing president and chief executive officer. "We are executing on our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems. While we have more work ahead, the steps we're taking will help stabilize our operations and ensure Boeing is the company the world needs it to be. We are making important progress in our recovery and will continue to build trust through action and transparency."

Table 2. Cash Flow						Second Quarter												First Half
(Millions)						2024						2023						2024						2023
Operating cash flow						($3,923)						$2,875						($7,285)						$2,557
Less additions to property, plant & equipment						($404)						($296)						($971)						($764)
Free cash flow*						($4,327)						$2,579						($8,256)						$1,793

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."

Operating cash flow was ($3.9) billion in the quarter reflecting lower commercial deliveries, as well as unfavorable working capital timing (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances						Quarter End
(Billions)						Q2 24						Q1 24
Cash						$10.9						$6.9
Marketable securities1						$1.7						$0.6
Total						$12.6						$7.5
Consolidated debt						$57.9						$47.9

1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."

Cash and investments in marketable securities totaled $12.6 billion, compared to $7.5 billion at the beginning of the quarter driven by the $10.0 billion issuance of new debt partially offset by the usage of free cash flow in the quarter (Table 3). Debt was $57.9 billion, up from $47.9 billion at the beginning of the quarter due to the issuance of new debt. The company has access to credit facilities of $10.0 billion, which remain undrawn.

Total company backlog at quarter end was $516 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes						Second Quarter																		First Half
(Dollars in Millions)						2024						2023						Change						2024						2023						Change
Deliveries						92						136						(32) %						175						266						(34) %
Revenues						$6,003						$8,840						(32) %						$10,656						$15,544						(31) %
Loss from operations						($715)						($383)						NM						($1,858)						($998)						NM
Operating margins						(11.9)		%				(4.3)		%				NM						(17.4)		%				(6.4)		%				NM

Commercial Airplanes second quarter revenue of $6.0 billion and operating margin of (11.9) percent primarily reflect lower deliveries and planned higher period costs, including research and development (Table 4).

During the quarter, the company submitted its comprehensive safety and quality plan to the Federal Aviation Administration (FAA). The 737 program gradually increased production during the quarter and still plans to increase production to 38 per month by year end. The 787 program maintains plans to return to 5 per month by year end. In July, the company announced an agreement to acquire Spirit AeroSystems, and the 777X program began FAA certification flight testing after obtaining type inspection authorization.

Commercial Airplanes delivered 92 airplanes during the quarter and backlog included over 5,400 airplanes valued at $437 billion.

Defense, Space & Security

Table 5. Defense, Space & Security						Second Quarter																		First Half
(Dollars in Millions)						2024						2023						Change						2024						2023						Change
Revenues						$6,021						$6,167						(2) %						$12,971						$12,706						2 %
Loss from operations						($913)						($527)						NM						($762)						($739)						NM
Operating margins						(15.2)		%				(8.5)		%				NM						(5.9)		%				(5.8)		%				NM

Defense, Space & Security second quarter revenue was $6.0 billion. Second quarter operating margin of (15.2) percent primarily reflects $1.0 billion of losses on certain fixed-price development programs, including a $391 million loss on the KC-46A program largely driven by a slowdown of commercial production and supply chain constraints. Losses recorded on the T-7A, VC-25B, and Commercial Crew programs reflect higher estimated engineering and manufacturing costs, as well as technical challenges.

During the quarter, Defense, Space & Security captured an award for seven MH-139A helicopters from the U.S. Air Force and delivered the first CH-47F Block II Chinook to the U.S. Army. Backlog at Defense, Space & Security was $59 billion, of which 31 percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services						Second Quarter																		First Half
(Dollars in Millions)						2024						2023						Change						2024						2023						Change
Revenues						$4,889						$4,746						3 %						$9,934						$9,466						5 %
Earnings from operations						$870						$856						2 %						$1,786						$1,703						5 %
Operating margins						17.8		%				18.0		%				-0.2 pts						18.0		%				18.0		%				0.0 pts

Global Services second quarter revenue of $4.9 billion and operating margin of 17.8 percent reflect higher commercial volume and mix. 

During the quarter, Global Services secured an Apache performance-based logistics contract from the U.S. Army and captured FliteDeck Pro service contracts with Hainan Airlines and Ryanair.

Additional Financial Information

Table 7. Additional Financial Information						Second Quarter												First Half
(Dollars in Millions)						2024						2023						2024						2023
Revenues
Unallocated items, eliminations and other						($47)						($2)						($126)						($44)
(Loss)/earnings from operations
Other unallocated items and eliminations						($634)						($336)						($946)						($796)
FAS/CAS service cost adjustment						$302						$291						$604						$582
Other income, net						$248						$320						$525						$622
Interest and debt expense						($673)						($621)						($1,242)						($1,270)
Effective tax rate						5.0		%				62.8		%				5.2		%				35.9		%

Other unallocated items and eliminations include an earnings charge of $244 million that reflects a fine that would be paid to the U.S. Department of Justice pursuant to an agreement that was recently filed in federal district court, if the agreement is approved. 

Non-GAAP Measures Disclosures

We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company's ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided: 

Core Operating Earnings/(loss), Core Operating Margin and Core Earnings/(loss) Per Share

Core operating earnings/(loss) is defined as GAAP Earnings/(loss) 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 U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings/(loss), core operating margin and core earnings/(loss) per share for purposes of evaluating and forecasting underlying business performance. Management believes these core measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is provided on page 12 and 13.

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.

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 U.S. government, as well as significant delays in U.S. government appropriations; (6) our dependence on our subcontractors and suppliers, as well as the availability of highly skilled labor and raw materials; (7) work stoppages or other labor disruptions; (8) competition within our markets; (9) our non-U.S. operations and sales to non-U.S. customers; (10) changes in accounting estimates; (11) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures, including anticipated synergies and quality improvements related to our pending acquisition of Spirit; (12) our dependence on U.S. government contracts; (13) our reliance on fixed-price contracts; (14) our reliance on cost-type contracts; (15) contracts that include in-orbit incentive payments; (16) unauthorized access to our, our customers' and/or our suppliers' information and systems; (17) potential business disruptions, including threats to physical security or our information technology systems, extreme weather (including effects of climate change) or other acts of nature, and pandemics or other public health crises; (18) potential adverse developments in new or pending litigation and/or government inquiries or investigations; (19) potential environmental liabilities; (20) effects of climate change and legal, regulatory or market responses to such change; (21) credit rating agency actions and changes in our ability to obtain debt financing on commercially reasonable terms, at competitive rates and in sufficient amounts; (22) substantial pension and other postretirement benefit obligations; (23) the adequacy of our insurance coverage; and (24) customer and aircraft concentration in our customer financing portfolio.

Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Contact:
Investor Relations:						Matt Welch or David Dufault BoeingInvestorRelations@boeing.com
Communications:						Michael Friedman media@boeing.com

 

The Boeing Company and Subsidiaries Consolidated Statements of Operations (Unaudited)
			Six months ended June 30												Three months ended June 30
(Dollars in millions, except per share data)			2024						2023						2024						2023
Sales of products			$26,792						$31,601						$13,524						$16,687
Sales of services			6,643						6,071						3,342						3,064
Total revenues			33,435						37,672						16,866						19,751
Cost of products			(24,971)						(28,676)						(12,907)						(15,123)
Cost of services			(5,359)						(5,134)						(2,730)						(2,689)
Total costs and expenses			(30,330)						(33,810)						(15,637)						(17,812)
			3,105						3,862						1,229						1,939
Income from operating investments, net			74						17						7						44
General and administrative expense			(2,538)						(2,590)						(1,377)						(1,286)
Research and development expense, net			(1,822)						(1,538)						(954)						(797)
Gain on dispositions, net			5						1						5						1
Loss from operations			(1,176)						(248)						(1,090)						(99)
Other income, net			525						622						248						320
Interest and debt expense			(1,242)						(1,270)						(673)						(621)
Loss before income taxes			(1,893)						(896)						(1,515)						(400)
Income tax benefit			99						322						76						251
Net loss			(1,794)						(574)						(1,439)						(149)
Less: net loss attributable to noncontrolling interest			(12)						(11)
Net loss attributable to Boeing Shareholders			($1,782)						($563)						($1,439)						($149)
Basic loss per share			($2.90)						($0.93)						($2.33)						($0.25)
Diluted loss per share			($2.90)						($0.93)						($2.33)						($0.25)
Weighted average diluted shares (millions)			614.8						603.9						616.6						605.5

 

The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited)
(Dollars in millions, except per share data)			June 30 2024						December 31 2023
Assets
Cash and cash equivalents			$10,894						$12,691
Short-term and other investments			1,727						3,274
Accounts receivable, net			3,155						2,649
Unbilled receivables, net			9,660						8,317
Current portion of financing receivables, net			60						99
Inventories			85,661						79,741
Other current assets, net			3,282						2,504
Total current assets			114,439						109,275
Financing receivables and operating lease equipment, net			785						860
Property, plant and equipment, net of accumulated depreciation of $22,640      and $22,245			10,976						10,661
Goodwill			8,108						8,093
Acquired intangible assets, net			2,067						2,094
Deferred income taxes									59
Investments			1,026						1,035
Other assets, net of accumulated amortization of $1,001 and $1,046			5,319						4,935
Total assets			$142,720						$137,012
Liabilities and equity
Accounts payable			$11,864						$11,964
Accrued liabilities			21,850						22,331
Advances and progress billings			58,151						56,328
Short-term debt and current portion of long-term debt			4,765						5,204
Total current liabilities			96,630						95,827
Deferred income taxes			291						229
Accrued retiree health care			2,159						2,233
Accrued pension plan liability, net			6,248						6,516
Other long-term liabilities			2,212						2,332
Long-term debt			53,162						47,103
Total liabilities			160,702						154,240
Shareholders' equity:
Common stock, par value $5.00 – 1,200,000,000 shares authorized;      1,012,261,159 shares issued			5,061						5,061
Additional paid-in capital			10,727						10,309
Treasury stock, at cost - 396,730,470 and 402,746,136 shares			(48,841)						(49,549)
Retained earnings			25,469						27,251
Accumulated other comprehensive loss			(10,392)						(10,305)
Total shareholders' deficit			(17,976)						(17,233)
Noncontrolling interests			(6)						5
Total equity			(17,982)						(17,228)
Total liabilities and equity			$142,720						$137,012

 

The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows (Unaudited)
			Six months ended June 30
(Dollars in millions)			2024						2023
Cash flows – operating activities:
Net loss			($1,794)						($574)
Adjustments to reconcile net loss to net cash (used)/provided by operating activities:
Non-cash items –
Share-based plans expense			208						381
Treasury shares issued for 401(k) contribution			953						862
Depreciation and amortization			883						913
Investment/asset impairment charges, net			34						12
Gain on dispositions, net			(5)						(1)
Other charges and credits, net			(34)						30
Changes in assets and liabilities –
Accounts receivable			(522)						(433)
Unbilled receivables			(1,345)						(721)
Advances and progress billings			1,886						2,228
Inventories			(5,937)						(241)
Other current assets			(320)						313
Accounts payable			(222)						852
Accrued liabilities			(443)						(399)
Income taxes receivable, payable and deferred			(188)						(424)
Other long-term liabilities			(148)						(180)
Pension and other postretirement plans			(491)						(520)
Financing receivables and operating lease equipment, net			149						419
Other			51						40
Net cash used/(provided) by operating activities			(7,285)						2,557
Cash flows – investing activities:
Payments to acquire property, plant and equipment			(971)						(764)
Proceeds from disposals of property, plant and equipment			30						13
Acquisitions, net of cash acquired			(50)
Contributions to investments			(1,617)						(9,496)
Proceeds from investments			3,173						5,567
Supplier notes receivable			(486)						(162)
Purchase of distribution rights			(88)
Other			(17)						4
Net cash used by investing activities			(26)						(4,838)
Cash flows – financing activities:
New borrowings			10,089						38
Debt repayments			(4,481)						(5,123)
Stock options exercised									44
Employee taxes on certain share-based payment arrangements			(67)						(48)
Other			(3)						(4)
Net cash provided/(used) by financing activities			5,538						(5,093)
Effect of exchange rate changes on cash and cash equivalents			(25)						2
Net decrease in cash & cash equivalents, including restricted			(1,798)						(7,372)
Cash & cash equivalents, including restricted, at beginning of year			12,713						14,647
Cash & cash equivalents, including restricted, at end of period			10,915						7,275
Less restricted cash & cash equivalents, included in Investments			21						21
Cash & cash equivalents at end of period			$10,894						$7,254

 

The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited)
			Six months ended June 30												Three months ended June 30
(Dollars in millions)			2024						2023						2024						2023
Revenues:
Commercial Airplanes			$10,656						$15,544						$6,003						$8,840
Defense, Space & Security			12,971						12,706						6,021						6,167
Global Services			9,934						9,466						4,889						4,746
Unallocated items, eliminations and other			(126)						(44)						(47)						(2)
Total revenues			$33,435						$37,672						$16,866						$19,751
Loss from operations:
Commercial Airplanes			($1,858)						($998)						($715)						($383)
Defense, Space & Security			(762)						(739)						(913)						(527)
Global Services			1,786						1,703						870						856
Segment operating (loss)/earnings			(834)						(34)						(758)						(54)
Unallocated items, eliminations and other			(946)						(796)						(634)						(336)
FAS/CAS service cost adjustment			604						582						302						291
Loss from operations			(1,176)						(248)						(1,090)						(99)
Other income, net			525						622						248						320
Interest and debt expense			(1,242)						(1,270)						(673)						(621)
Loss before income taxes			(1,893)						(896)						(1,515)						(400)
Income tax expense			99						322						76						251
Net loss			(1,794)						(574)						(1,439)						(149)
Less: net loss attributable to noncontrolling interest			(12)						(11)
Net loss attributable to Boeing Shareholders			($1,782)						($563)						($1,439)						($149)
Research and development expense, net:
Commercial Airplanes			$1,073						$915						$555						$471
Defense, Space & Security			494						420						259						225
Global Services			67						54						41						28
Other			188						149						99						73
Total research and development expense, net			$1,822						$1,538						$954						$797
Unallocated items, eliminations and other:
Share-based plans			$53						($38)						$43						$14
Deferred compensation			(49)						(96)						(19)						(42)
Amortization of previously capitalized interest			(46)						(47)						(23)						(24)
Research and development expense, net			(188)						(149)						(99)						(73)
Eliminations and other unallocated items			(716)						(466)						(536)						(211)
Sub-total (included in Core operating loss)			(946)						(796)						(634)						(336)
Pension FAS/CAS service cost adjustment			460						445						230						222
Postretirement FAS/CAS service cost adjustment			144						137						72						69
FAS/CAS service cost adjustment			604						582						$302						$291
Total			($342)						($214)						($332)						($45)

 

The Boeing Company and Subsidiaries Operating and Financial Data (Unaudited)
Deliveries						Six months ended June 30												Three months ended June 30
Commercial Airplanes						2024						2023						2024						2023
737						137						216						70						103
747						—						1						—						—
767						9						9						6						8
777						7						9						7						5
787						22						31						9						20
Total						175						266						92						136
Defense, Space & Security
AH-64 Apache (New)						3						12						3						5
AH-64 Apache (Remanufactured)						13						29						7						16
CH-47 Chinook (New)						2						7						1						2
CH-47 Chinook (Renewed)						5						4						4						3
F-15 Models						7						6						6						4
F/A-18 Models						4						13						3						6
KC-46 Tanker						5						1						2						—
P-8 Models						3						5						2						2
Commercial Satellites						—						3						—						—
Total1						42						80						28						38
1 Deliveries of new-build production units, including remanufactures and modifications
Total backlog (Dollars in millions)																		June 30 2024						December 31 2023
Commercial Airplanes																		$436,574						$440,507
Defense, Space & Security																		59,055						59,012
Global Services																		19,487						19,869
Unallocated items, eliminations and other																		758						807
Total backlog																		$515,874						$520,195
Contractual backlog																		$495,358						$497,094
Unobligated backlog																		20,516						23,101
Total backlog																		$515,874						$520,195

 

The Boeing Company and Subsidiaries 
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 per share data)								Second Quarter 2024									Second Quarter 2023
								$ millions			Per Share						$ millions			Per Share
Revenues								16,866									19,751
Loss from operations (GAAP)								(1,090)									(99)
Operating margins (GAAP)								(6.5)		%							(0.5)		%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment								(230)									(222)
Postretirement FAS/CAS service cost adjustment								(72)									(69)
FAS/CAS service cost adjustment								(302)									(291)
Core operating loss (non-GAAP)								($1,392)									($390)
Core operating margins (non-GAAP)								(8.3)		%							(2.0)		%
Diluted loss per share (GAAP)											($2.33)									($0.25)
Pension FAS/CAS service cost adjustment								($230)			(0.37)						($222)			(0.37)
Postretirement FAS/CAS service cost adjustment								(72)			(0.12)						(69)			(0.11)
Non-operating pension expense								(122)			(0.20)						(134)			(0.22)
Non-operating postretirement expense								(19)			(0.03)						(14)			(0.02)
Provision for deferred income taxes on adjustments 1								93			0.15						92			0.15
Subtotal of adjustments								($350)			($0.57)						($347)			($0.57)
Core loss per share (non-GAAP)											($2.90)									($0.82)
Weighted average diluted shares (in millions)											616.6									605.5

1 The income tax impact is calculated using the U.S. corporate statutory tax rate.

 

The Boeing Company and Subsidiaries 
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, 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 per share data)								First Half 2024									First Half 2023
								$ millions			Per Share						$ millions			Per Share
Revenues								33,435									37,672
Loss from operations (GAAP)								(1,176)									(248)
Operating margin (GAAP)								(3.5)		%							(0.7)		%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment								(460)									(445)
Postretirement FAS/CAS service cost adjustment								(144)									(137)
FAS/CAS service cost adjustment								(604)									(582)
Core operating loss (non-GAAP)								(1,780)									(830)
Core operating margin (non-GAAP)								(5.3)		%							(2.2)		%
Diluted loss per share (GAAP)											(2.90)									(0.93)
Pension FAS/CAS service cost adjustment								(460)			(0.75)						(445)			(0.73)
Postretirement FAS/CAS service cost adjustment								(144)			(0.23)						(137)			(0.23)
Non-operating pension expense								(245)			(0.40)						(268)			(0.45)
Non-operating postretirement expense								(37)			(0.06)						(29)			(0.05)
Provision for deferred income taxes on adjustments 1								186			0.30						185			0.31
Subtotal of adjustments								($700)			($1.14)						($694)			($1.15)
Core loss per share (non-GAAP)											($4.04)									($2.08)
Weighted average diluted shares (in millions)											614.8									603.9

1 The income tax impact is calculated using the U.S. corporate statutory tax rate.

 

View original content:https://www.prnewswire.com/news-releases/boeing-reports-second-quarter-results-302210987.html

SOURCE Boeing

FAQ

What were Boeing's (BA) Q2 2024 financial results?

Boeing reported Q2 2024 revenue of $16.9 billion, a GAAP loss per share of ($2.33), and a core loss per share of ($2.90). Operating cash flow was ($3.9) billion.

How many commercial airplanes did Boeing (BA) deliver in Q2 2024?

Boeing delivered 92 commercial airplanes in Q2 2024, a 32% decrease compared to the same period last year.

What is Boeing's (BA) total backlog as of Q2 2024?

Boeing's total company backlog at the end of Q2 2024 was $516 billion, including over 5,400 commercial airplanes.

What major acquisition did Boeing (BA) announce in July 2024?

Boeing announced an agreement to acquire Spirit AeroSystems in July 2024, with the transaction expected to close by mid-2025.

What are Boeing's (BA) production plans for the 737 and 787 programs?

Boeing plans to increase 737 production to 38 per month by year-end 2024, and return the 787 program to 5 per month by year-end.