Boeing reports Q4 results impacted by machinist strike; confirms first 777X delivery in 2026

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Boeing reports Q4 results impacted by machinist strike; confirms first 777X delivery in 2026

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Boeing airplane | Wikimedia

By Sky Industry News

Jan 24, 2025

Boeing has released its preliminary results for the fourth quarter of 2024, marking the second consecutive quarter where it disclosed part of its financial performance before the full quarterly report. The company has been affected by a machinists' strike, represented by the International Association of Machinists and Aerospace Workers (IAM), which ended with a new contract after 52 days.

Kelly Ortberg, Boeing's President and CEO, acknowledged ongoing challenges but emphasized steps taken to stabilize operations. This includes reaching an agreement with IAM-represented employees who ratified their contract on November 4, 2024. Ortberg also noted a successful capital raise aimed at strengthening Boeing's balance sheet amidst concerns from credit rating agencies about potential downgrades due to liquidity issues.

The Federal Aviation Administration (FAA) has capped production at 38 units per month for the 737 MAX model. Sean Duffy, potentially incoming Secretary of Transportation, intends to maintain this cap until quality assurance is guaranteed.

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Despite affirming the first delivery of the 777X in 2026, Boeing faces additional charges totaling $1.1 billion related to both the 777X and 767F programs. A $900 million pre-tax charge will be booked for higher labor costs under the new IAM contract over several years.

“The company still anticipates first delivery of the 777-9 in 2026," stated Boeing regarding future plans. Commercial Airplanes is expected to report fourth-quarter revenue of $4.8 billion with an operating margin of negative 43.9 percent.

For Q3 2024, Boeing recorded pre-tax charges amounting to $3 billion across these programs due to delays in service entry and flight testing setbacks linked to the IAM strike.

Boeing projects ending Q4 with revenues of $15.2 billion but anticipates a loss per share of $5.46 and an operating cash outflow of $3.5 billion. Cash reserves are expected to total $26.3 billion by quarter-end compared to Q3’s cash position at $9.9 billion following significant losses attributed partly to strikes starting September last year.

In contrast with Airbus delivering nearly double during December alone — managing around “770” aircraft annually despite lowering targets — Boeing completed only half as many deliveries throughout challenging circumstances faced within that period: handing over just shy three hundred fifty commercial planes overall including two hundred sixty-five models from their popular series lineup such as ‘MAX’.