Jun 30, 2020

Boeing Q2 2020 Earnings Report

Boeing's financial results were significantly impacted by COVID-19 and the 737 MAX grounding.

Key Takeaways

Boeing reported a second-quarter revenue of $11.8 billion, a GAAP loss per share of ($4.20), and a core loss per share (non-GAAP) of ($4.79). The results primarily reflect the impacts of COVID-19 and the 737 MAX grounding. Boeing recorded an operating cash flow of ($5.3) billion.

Revenue was $11.8 billion.

GAAP loss per share was ($4.20).

Core (non-GAAP) loss per share was ($4.79).

Operating cash flow was ($5.3) billion.

Total Revenue
$11.8B
Previous year: $21.4B
-44.7%
EPS
-$4.79
Previous year: $2.92
-264.0%
Commercial Airplanes Backlog
$326B
Defense, Space & Security Backlog
$64B
Global Services Backlog
$18.2B
Gross Profit
-$1.17B
Previous year: -$2.06B
-43.1%
Cash and Equivalents
$20B
Previous year: $9.17B
+118.1%
Free Cash Flow
-$5.63B
Previous year: -$1.01B
+456.7%
Total Assets
$163B
Previous year: $126B
+29.0%

Boeing

Boeing

Boeing Revenue by Segment

Forward Guidance

Boeing is taking actions to align to the sharp reduction in commercial market demand due to COVID-19, including adjusting commercial airplane production rates and reducing employment levels.

Positive Outlook

  • Restarted production operations across key sites.
  • Resumed early stages of production on the 737 program with a focus on safety, quality and operational excellence.
  • Made steady progress toward the safe return to service of the 737, including completion of FAA certification flight tests.
  • Received an award for three additional MQ-25 unmanned aerial refueling aircraft for the U.S. Navy.
  • Captured an order for four 767-300 freighter conversions for DHL.

Challenges Ahead

  • Further adjusting commercial airplane production rates.
  • Reducing employment levels.
  • COVID-19 pandemic has significantly impacted air travel and reduced near-term demand.
  • 787 production rate will be reduced to 6 per month in 2021.
  • The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income