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Boeing Misses Revenue Estimates at $24.2 Billion as Core Loss Narrows

Boeing reported a GAAP operating profit of $354 million, against a loss of $4.78 billion a year earlier, and a record $745 billion backlog.

By Zintick Team · Editor: Kratik Mehta
Published

Wide shot of engineers repairing the wing of a passenger jet at a hangar.
Photo: Juice Flair/Shutterstock.com

Key points

  • Q3 revenue $24.2 billion, up 4% from a year earlier but below the $24.37 billion analyst estimate
  • Core loss of $0.34 per share, adjusted basis, against the $0.20 loss analysts expected
  • GAAP loss per share of $0.26; GAAP operating profit of $354 million versus a $4.78 billion loss
  • Defense revenue rose 15% to $7.9 billion; commercial revenue fell 3% to $10.7 billion
  • Record backlog of $745 billion; operating cash flow $1.5 billion

Boeing (NYSE: BA) reported third-quarter revenue of $24.2 billion, below the $24.37 billion analysts expected, and a core loss of $0.34 per share on an adjusted basis, against the $0.20 loss the average analyst estimate called for, in an 8-K filed Tuesday. GAAP loss per share was $0.26.

Revenue rose 4% from $23.27 billion a year earlier. The company swung to a GAAP operating profit of $354 million from a loss of $4.78 billion. Core operating earnings were $204 million, compared with a loss of $5.05 billion.

Defense and commercial segments

Defense, Space & Security revenue rose 15% to $7.9 billion, and its operating margin was 6.2%, which the company said included a $252 million gain on the HRL Laboratories sale. The U.S. Navy selected the unit to design, build and deliver the F/A-XX next-generation fighter. That order is not in backlog pending completion of the source selection and evaluation review.

Commercial Airplanes revenue fell 3% to $10.7 billion on 161 deliveries, compared with 160 a year earlier. The segment's operating margin was (6.5)%, which the company attributed to less favorable delivery mix, higher projected costs tied to future production rate adjustments and higher estimated supply chain costs. The 737-7 received amended type certification from the Federal Aviation Administration in the quarter, and the 737-10 received certification in October.

Global Services revenue rose 4% to $5.6 billion.

Cash and backlog

Operating cash flow was $1.5 billion and free cash flow, a non-GAAP measure, was $0.5 billion. The company said operating cash flow included Department of Justice settlement payments of about $0.7 billion. Cash and investments in marketable securities rose to $20.7 billion, and consolidated debt was $45.9 billion. Total company backlog grew to a record $745 billion.

Outlook

The release did not include new full-year guidance. Analysts expected fourth-quarter revenue of $26.33 billion and full-year revenue of $97.50 billion, with a full-year adjusted loss of $1.10 per share. Boeing shares closed at $188.31 on Monday, Oct. 26, the last trading session before the filing.

Sources

Written with AI from the company's results filing with the SEC, analysts' estimates where we had them, and our market data, and checked against those sources before publishing. Our editorial standards.

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