Mar 31, 2024

Boeing Q1 2024 Earnings Report

Boeing's financial performance was affected by lower 737 deliveries and the 737-9 grounding, while comprehensive actions were undertaken to strengthen quality and safety in the commercial business.

Key Takeaways

Boeing reported a revenue of $16.6 billion for Q1 2024. The company experienced a GAAP loss per share of ($0.56) and a core (non-GAAP) loss per share of ($1.13). Operating cash flow was ($3.4) billion and free cash flow was ($3.9) billion (non-GAAP). Total company backlog grew to $529 billion, including over 5,600 commercial airplanes.

Undertaking comprehensive actions in our commercial business to strengthen quality and safety

Financial results reflect lower 737 deliveries and 737-9 grounding customer considerations

Total company backlog grew to $529 billion, including over 5,600 commercial airplanes

The 737 program slowed production below 38 per month to incorporate improvements to its quality management system

Total Revenue
$16.6B
Previous year: $17.9B
-7.5%
EPS
-$1.13
Previous year: -$1.27
-11.0%
Aircraft Deliveries
83
Previous year: 130
-36.2%
Gross Profit
$1.88B
Previous year: $1.92B
-2.4%
Cash and Equivalents
$6.91B
Previous year: $10.8B
-36.1%
Free Cash Flow
-$3.93B
Previous year: -$786M
+399.9%
Total Assets
$134B
Previous year: $136B
-1.4%

Boeing

Boeing

Boeing Revenue by Segment

Forward Guidance

Boeing is focused on strengthening its quality and safety management systems, which is expected to lead to a stronger and more stable future. However, the company faces risks related to economic conditions, reliance on commercial airline customers, production quality issues, and dependence on subcontractors and suppliers.

Positive Outlook

  • Focus on strengthening quality and safety management systems
  • Comprehensive action plan to address feedback from the FAA audit of 737 production
  • Booked 125 net orders, including 85 737-10 airplanes for American Airlines and 28 777X airplanes for customers including Ethiopian Airlines
  • Global Services opened a maintenance facility in Jacksonville, Florida, supporting military customers
  • U.S. Navy exercised options on a P-8 sustainment modification contract

Challenges Ahead

  • Lower 737 deliveries and 737-9 grounding customer considerations
  • Slowing down 737 production to drive improvements in quality
  • Results reflect $222 million of losses on certain fixed-price development programs
  • Reliance on fixed-price contracts
  • Potential adverse developments in new or pending litigation and/or government inquiries or investigations

Revenue & Expenses

Visualization of income flow from segment revenue to net income