Key Highlights

  • Third-quarter revenue rose 4% to USD 24.188 billion, led by Defense, Space and Security at USD 7.935 billion.
  • Operating earnings were USD 354 million against a USD 4.781 billion loss, which included a USD 4.9 billion reach-forward charge.
  • Net loss attributable to shareholders narrowed to USD 116 million, or USD 0.26 per share, from USD 5.337 billion.
  • Backlog stood at USD 745.4 billion, and nine-month operating cash flow was USD 2.681 billion against USD 266 million used.

Commercial Airplanes Loss Narrows Sharply

Boeing (NYSE:BA) reported in its quarterly filing on Tuesday third-quarter revenue of USD 24.188 billion, up from USD 23.270 billion. Earnings from operations were USD 354 million, a swing of USD 5.135 billion from the prior-year loss. Core operating earnings, which exclude certain pension components, were USD 204 million against a core loss of USD 5.049 billion.

Commercial Airplanes revenue fell to USD 10.720 billion from USD 11.094 billion, and its operating loss narrowed to USD 697 million from USD 5.353 billion. The prior-year quarter included a USD 4.9 billion reach-forward loss recognized at the segment. Over nine months, 777X and 767 reach-forward losses were USD 86 million against USD 5.140 billion.

Defense, Space and Security revenue rose 15% to USD 7.935 billion, and its operating earnings rose to USD 492 million from USD 114 million. Global Services revenue rose to USD 5.574 billion, and its operating earnings rose to USD 1.019 billion from USD 938 million.

Costs, Interest and the Net Result

Cost of sales fell to USD 22.021 billion, or 91.0% of revenue, from USD 25.645 billion, or 110.2%. Other income, net was USD 96 million against USD 276 million, which the company attributed to higher non-operating pension cost. Interest and debt expense fell to USD 573 million from USD 694 million on lower debt balances.

The pretax loss was USD 123 million, and a USD 7 million tax benefit left a net loss attributable to shareholders of USD 116 million, or USD 0.26 per diluted share, against USD 5.337 billion and USD 7.14. Core loss per share was USD 0.34.

Nine-month revenue rose 8.3% to USD 70.965 billion, with operating earnings of USD 958 million against a USD 4.496 billion loss and a diluted loss of USD 1.04 per share against USD 8.25.

Cash Flow and Backlog

Nine-month operating cash flow was USD 2.681 billion against USD 266 million used. Advances and progress billings added USD 8.113 billion, while inventories absorbed USD 6.733 billion. Capital expenditures were USD 3.040 billion, which leaves free cash flow near negative USD 359 million on that arithmetic. Financing activities used USD 8.620 billion, and cash including restricted cash was USD 9.541 billion, against USD 11.663 billion at the start of the year.

Total backlog was USD 745.4 billion at Sept. 30. The company reports that about 17% converts to revenue through 2027 and about 57% through 2030, and it flags that delays to entry into service of the 777X, 737-7 and 737-10 can reduce backlog or lead to cancellations.

Program and Cash Markers

Tracking points include Commercial Airplanes operating loss relative to USD 697 million, additional reach-forward charges on the 777X and 767, and Defense, Space and Security earnings against USD 492 million.

Further items are inventory and advances trends in operating cash flow, research and development spending, which rose in unallocated items, and certification and entry-into-service timing for the 737-7, 737-10 and 777X.