The Boeing Company (BA) Q3 2024 earnings summary

Executive summary

• Third quarter 2024 results were heavily impacted by the IAM work stoppage, major program charges, and production disruptions, resulting in significant losses and negative cash flow.

• Leadership is focused on a turnaround strategy emphasizing culture change, business stabilization, execution discipline, and streamlining operations, including a 10% workforce reduction.

• The Alaska Airlines 737-9 accident and subsequent FAA actions led to production slowdowns, further impacting deliveries and financial results.

• Boeing entered into an agreement to acquire Spirit AeroSystems for $4.7 billion in stock, with closing expected mid-2025, subject to regulatory and shareholder approvals.

• Backlog remains robust at $511 billion, with strong customer demand across commercial and defense segments.

Financial highlights

• Q3 2024 revenue was $17.8 billion, down 1% year-over-year, with a net loss of $6.2 billion and a core loss per share of $10.44, reflecting strike impacts and program charges.

• Operating margin for Q3 was -32.3%, and free cash flow was negative $2.0 billion.

• Year-to-date revenue was $51.3 billion, down 8% from the prior year, with a net loss of $8.0 billion and diluted loss per share of $12.91.

• Commercial Airplanes revenue was $7.4 billion with a -54% operating margin, impacted by $3 billion in pre-tax charges and the strike.

• Defense, Space & Security revenue was $5.5 billion, stable year-over-year, but with a -43.1% operating margin due to $2 billion in pre-tax charges.

• Global Services revenue was $4.9 billion, up 2%, with a 17% operating margin.

Outlook and guidance

• Negative operating and free cash flows are expected in future quarters until the IAM 751 strike ends and production resumes.

• 2025 free cash flow is also expected to be negative but with significant improvement over 2024; positive momentum anticipated exiting 2025.

• Management believes it can fund operations for the foreseeable future and access additional liquidity if needed.

• Long-term fundamentals remain strong, underpinned by a $511 billion backlog and robust demand.