Sep 30, 2023

Boeing Q3 2023 Earnings Report

Boeing's Q3 2023 results were impacted by unfavorable defense performance and lower 737 deliveries.

Key Takeaways

Boeing reported Q3 2023 revenue of $18.1 billion, with a GAAP loss per share of ($2.70) and a core loss per share (non-GAAP) of ($3.26). The results were affected by unfavorable defense performance and lower 737 deliveries. The company reaffirmed its guidance for operating cash flow of $4.5-$6.5 billion and free cash flow of $3.0-$5.0 billion for the year.

Boeing recorded third quarter revenue of $18.1 billion.

GAAP loss per share was ($2.70) and core loss per share (non-GAAP) was ($3.26).

Operating cash flow was $0.0 billion and free cash flow was ($0.3) billion (non-GAAP).

Total company backlog at quarter end was $469 billion.

Total Revenue
$18.1B
Previous year: $16B
+13.5%
EPS
-$3.26
Previous year: -$6.18
-47.2%
Commercial Backlog
$392B
Previous year: $307B
+27.7%
Defense Backlog
$57.8B
Previous year: $55B
+5.1%
Global Services Backlog
$18.4B
Previous year: $19B
-2.9%
Gross Profit
$1.17B
Previous year: -$822M
-241.7%
Cash and Equivalents
$6.81B
Previous year: $13.5B
-49.5%
Free Cash Flow
-$310M
Previous year: $2.91B
-110.7%
Total Assets
$134B
Previous year: $138B
-2.4%

Boeing

Boeing

Boeing Revenue by Segment

Forward Guidance

Boeing reaffirmed guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion of free cash flow (non-GAAP). Still expect to deliver 70-80 787 and now expect to deliver 375-400 737 airplanes. Now transitioning 787 to five per month; plan to complete 737 production transition to 38 per month by year-end

Positive Outlook

  • Reaffirmed operating cash flow guidance of $4.5-$6.5 billion.
  • Reaffirmed free cash flow guidance of $3.0-$5.0 billion (non-GAAP).
  • Still expect to deliver 70-80 787 airplanes.
  • Expect to deliver 375-400 737 airplanes.
  • Transitioning 787 production to five per month.

Challenges Ahead

  • Third quarter results were impacted by unfavorable defense performance.
  • Third quarter results were impacted by lower 737 deliveries.
  • Near-term deliveries and production will be impacted as the 737 program performs necessary inspections and rework.
  • A supplier non-conformance was identified on the aft pressure bulkhead section of certain 737 airplanes.
  • The company expects to complete the final assembly transition to 38 per month by year-end.

Revenue & Expenses

Visualization of income flow from segment revenue to net income