On October 25, 2023, Boeing Co (BA, Financial) released its third-quarter earnings report, revealing a revenue of $18.1 billion, a 13% increase from the $15.956 billion reported in the same period in 2022. Despite the increase in revenue, the company reported a GAAP net loss of $1.638 billion, compared to a net loss of $3.308 billion in Q3 2022. The loss per share was $2.70, a significant decrease from the $5.49 loss per share reported in the same quarter of the previous year.
Financial Highlights
Boeing Co (BA, Financial) reported a GAAP loss from operations of $808 million, a notable improvement from the $2.792 billion loss reported in Q3 2022. The company's operating cash flow was $22 million, a stark contrast to the $3.190 billion reported in the same period in 2022. Boeing Co (BA) also reported a core operating loss (non-GAAP) of $1.089 billion, compared to a loss of $3.071 billion in Q3 2022.
Segment Performance
Commercial Airplanes revenue increased to $7.9 billion, driven by higher 787 deliveries. However, the operating margin was -8.6%, reflecting lower 737 deliveries and abnormal costs. Defense, Space & Security revenue was $5.5 billion, with an operating margin of -16.9% due to higher estimated manufacturing costs and resolution of supplier negotiations. Global Services reported a revenue of $4.8 billion and an operating margin of 16.3%, reflecting higher commercial volume and mix.
Future Outlook
Despite the challenges, Boeing Co (BA, Financial) reaffirmed its guidance, expecting $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion of free cash flow. The company also expects to deliver 70-80 787 and 375-400 737 airplanes. Boeing's total company backlog stands at $469 billion, including over 5,100 commercial airplanes, indicating strong demand for its products.
CEO's Commentary
“We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term,” said Dave Calhoun, Boeing president and chief executive officer. “We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand."
