Boeing reports expected fourth-quarter losses due to various operational challenges

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Kimberly (Kim) Pastega Chair, Manufacturing Operations Council Vice President, Manufacturing and Safety Boeing Commercial Airplanes | Boeing

By Sky Industry News

Jan 23, 2025

The Boeing Company has announced that its upcoming fourth-quarter financial results will reflect several impacts, including those related to the IAM work stoppage and agreement, as well as charges from certain Defense, Space & Security programs. The company will also account for costs associated with previously announced workforce reductions. Boeing is set to report these results on January 28.

Boeing anticipates reporting a fourth-quarter revenue of $15.2 billion, a GAAP loss per share of ($5.46), and an operating cash flow of ($3.5) billion. The company's cash and investments in marketable securities totaled $26.3 billion at the end of the quarter.

"Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet," said Kelly Ortberg, Boeing president and chief executive officer. "We also restarted 737, 767 and 777/777X production and our team remains focused on the hard work ahead to build a new future for Boeing."

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The Commercial Airplanes division will see impacts from the IAM work stoppage and agreement, leading to lower deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs. A pre-tax charge of $0.9 billion for the 777X program reflects higher estimated labor costs associated with finalizing the IAM agreement, which will be incurred over several years. The first delivery of the 777-9 is still anticipated in 2026.

Defense, Space & Security expects pre-tax earnings charges totaling $1.7 billion across several programs: KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25. For instance, a pre-tax charge of $0.8 billion on the KC-46A program reflects higher manufacturing costs influenced by the IAM work stoppage and agreement.

Boeing cautions that these preliminary financial results are unaudited estimates subject to change following management's continued review processes before finalization.

The company outlines potential risks that could affect actual outcomes compared to forward-looking statements provided in this release. These include economic conditions, reliance on commercial airline customers, government budget changes, labor disruptions, competition within markets, among others.