Boeing has released its third-quarter financial results for 2024, showing a continued struggle with significant losses and operational challenges. The company reported revenue of $17.8 billion, a slight dip from the $18.1 billion in the same period in 2023. This period’s results reflect the impact of the International Association of Machinists and Aerospace Workers (IAM) strike and additional costs associated with its commercial and defense programs. These combined pressures resulted in a GAAP loss per share of ($9.97) and a core loss per share of ($10.44).

Financial Struggles Deepen

Boeing’s overall financial health has taken a hit, with a net loss of $6.2 billion for the third quarter alone. Operating cash flow was negative, at ($1.3) billion, with free cash flow dropping to ($2.0) billion. Over the first nine months of 2024, the company’s total revenues fell by 8%, while operating losses skyrocketed, revealing the steep challenges Boeing faces in returning to profitability.

Segment Performance: Commercial, Defense, and Services

• Commercial Airplanes: Boeing’s commercial airplane division, which delivered 116 aircraft during the quarter, reported revenue of $7.4 billion. However, the division posted a significant operating loss of $4.0 billion, driven by $3.0 billion in pre-tax charges related to the 777X and 767 programs, as well as the IAM work stoppage. The backlog of commercial aircraft stands at over 5,400 airplanes, valued at $428 billion, indicating future potential despite current difficulties.
• Defense, Space & Security: The defense sector fared no better, with a revenue of $5.5 billion but a loss from operations totaling $2.4 billion. This was mainly due to charges on major programs such as the T-7A, KC-46A Tanker, Commercial Crew, and MQ-25. Boeing’s Defense backlog remains robust at $62 billion, 28% of which comes from international customers.
• Global Services: Boeing Global Services continued to perform well, generating $4.9 billion in revenue and achieving a 17.0% operating margin. This reflects higher commercial volume and key contracts secured during the quarter, including agreements with All Nippon Airways and the U.S. Air Force.

Backlog and Cash Position

Boeing’s total company backlog remains strong at $511 billion, providing some optimism for future growth. However, its cash position has weakened, with cash and marketable securities declining from $12.6 billion at the end of the previous quarter to $10.5 billion. Despite this, Boeing secured a new $10 billion credit facility, adding to its $20 billion in undrawn credit, signaling efforts to bolster liquidity.

CEO’s Outlook

Kelly Ortberg, Boeing’s President and CEO, acknowledged the company’s ongoing struggles but expressed confidence in the long-term vision. “It will take time to return Boeing to its former legacy,” Ortberg said, emphasizing the need to focus on changing the company’s culture, stabilizing its operations, and improving program execution.

Boeing’s third-quarter results illustrate the challenges of balancing ongoing production issues, labor disputes, and significant program costs. However, with a strong backlog and ongoing efforts to secure its financial footing, the company remains focused on navigating through its current difficulties and returning to profitability in the future.