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

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.

Related: Boeing Stock Falls On Preliminary Q4 Results: The Details

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.

Also Read:

• Boeing Shares Drop Pre-Market As Labor Strikes Expected To Wipe $3.5B From Airplane Maker’s Q4 Cash Flow

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