Boeing Q4 Earnings: Labor Strikes And Defense Charges Impact Performance, Loses $4.1 Billion In Free Cash Flow

Zinger Key Points

Boeing’s Q4 revenue dropped 31% YoY to $15.2 billion, with a core loss per share of $5.90.
Deliveries declined 64%, while backlog grew to $521 billion, including over 5,500 commercial airplanes.
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Boeing Co BA reported a 31% year-over-year revenue decline to $15.242 billion in the fourth quarter of 2024, missing the consensus of $16.174 billion.

Adjusted loss per share grew to $5.90 from $0.47 in the same quarter of 2023, missing the consensus of a $2.44 loss.

Boeing stated that the results reflect the impact of the IAM work stoppage, charges on certain defense programs, and costs associated with last year’s workforce reductions.

Boeing recorded an adjusted operating loss of $4.042 billion for the quarter, compared to an adjusted operating earnings of $90 million a year ago. The core operating loss margin was 26.5% Vs. 4% profit a year ago.

Operating cash outflow for the quarter totaled $3.45 billion, compared to cash inflow of $3.381 billion YoY, while the free cash outflow was $4.098 billion.

Commercial Airplanes revenue fell 55% YoY to $4.862 billion, reflecting the IAM work stoppage, reduced deliveries, and $1.1 billion in pre-tax charges on the 777X and 767 programs.

Deliveries declined by 64%. 57 airplanes were delivered, and the backlog included over 5,500 airplanes valued at $435 billion.

Defense, Space & Security revenue slid 20% year over year to $5.411 billion. The backlog was $64 billion, of which 29% represents orders from customers outside the U.S.

Global Services revenue grew by 6% YoY to $5.119 billion. The operating margin expanded 210 bps to 19.5%, reflecting higher commercial volume and mix.

Boeing’s cash and investments in marketable securities rose to $26.3 billion from $10.5 billion, driven by a $24 billion capital raise, offset by free cash flow usage and debt repayment.

The company’s debt fell to $53.9 billion from $57.7 billion due to early repayment of a $3.5 billion bond. It holds $10 billion in undrawn credit facilities.

Boeing delivered 348 commercial airplanes and secured 279 net orders in 2024. The total company backlog, including more than 5,500 commercial airplanes, increased to $521 billion.

Price Action: At the last check on Wednesday, BA shares were trading lower by 0.01% at $175.15 premarket.

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