The Boeing Company (BA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined to $16.9B, with net loss per share of $2.90 and significant losses from fixed-price defense programs; results reflect lower commercial deliveries and ongoing recovery efforts post-Alaska Airlines incident.

• Announced agreement to acquire Spirit AeroSystems, with reported values ranging from $4.7B to $8.3B, in an all-stock deal expected to close mid-2025, aiming to improve safety, quality, and supply chain stability.

• Submitted a comprehensive safety and quality plan to the FAA and began 777X certification flight testing.

• Leadership transition announced, with Kelly Ortberg appointed as CEO effective August 8, 2024.

• Progress made in stabilizing operations, improving KPIs, and enhancing supply chain oversight, including increased on-site inspections at Spirit.

Financial highlights

• Q2 2024 revenue was $16.9B, down from $19.8B in Q2 2023; first half 2024 revenue was $33.4B, down 11% year-over-year.

• Net loss for Q2 2024 was $1.44B, with diluted loss per share of $2.33 GAAP and $2.90 core; first half net loss was $1.8B.

• Free cash flow usage was $4.3B in Q2, with operating cash flow for the first half at ($7.3B).

• Commercial Airplanes delivered 92 aircraft in Q2, with revenue of $6B and operating margin of -11.9%.

• Global backlog at quarter-end was $516B, with over 5,400 commercial airplanes.

Outlook and guidance

• Production and deliveries expected to improve in the second half of 2024, with 737 production targeted at 38 per month and 787 at 5 per month by year-end.

• Inventory and working capital will remain headwinds, with free cash flow usage expected to be larger than previously forecasted for the year.

• Spirit AeroSystems acquisition expected to close mid-2025, pending regulatory and shareholder approvals.

• Long-term demand remains robust, with a 20-year outlook for nearly 44,000 new airplane deliveries.

• Capital expenditures for 2024 are expected to be higher than 2023.