First Quarter 2024

  • Undertaking comprehensive actions in our commercial business to strengthen quality and safety
  • Financial results reflect lower 737 deliveries and 737-9 grounding customer considerations
  • Revenue of $16.6 billion, GAAP loss per share of ($0.56) and core (non-GAAP)* loss per share of ($1.13)
  • Operating cash flow of ($3.4) billion and free cash flow of ($3.9) billion (non-GAAP)*
  • Total company backlog grew to $529 billion, including over 5,600 commercial airplanes
Table 1. Summary Financial Results First Quarter
(Dollars in Millions, except per share data) 2024 2023 Change
Revenues $16,569 $17,921 (8) %
Loss from operations ($86) ($149) NM
Operating margins (0.5) % (0.8) % NM
Net loss ($355) ($425) NM
Loss per share ($0.56) ($0.69) NM
Operating cash flow ($3,362) ($318) NM
Core operating loss ($388) ($440) NM
Core operating margins (2.3) % (2.5) % NM
Core loss per share ($1.13) ($1.27) NM
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”

The Boeing Company [NYSE: BA] recorded first quarter revenue of $16.6 billion, GAAP loss per share of ($0.56) and core loss per share (non-GAAP)* of ($1.13) (Table 1). Boeing reported operating cash flow of ($3.4) billion and free cash flow of ($3.9) billion (non-GAAP)*. Results primarily reflect lower commercial delivery volume.

“Our first quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” said Dave Calhoun, Boeing president and CEO. “We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future.”

Table 2. Cash Flow First Quarter
(Millions) 2024 2023
Operating cash flow ($3,362) ($318)
Less additions to property, plant & equipment ($567) ($468)
Free cash flow* ($3,929) ($786)
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”

Operating cash flow was ($3.4) billion in the quarter reflecting lower commercial deliveries, as well as unfavorable timing of receipts and expenditures (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances Quarter End
(Billions) Q1 24 Q4 23
Cash $6.9 $12.7
Marketable securities1 $0.6 $3.3
Total $7.5 $16.0
Consolidated debt $47.9 $52.3
1 Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.”

Cash and investments in marketable securities totaled $7.5 billion, compared to $16.0 billion at the beginning of the quarter reflecting debt repayment and free cash flow usage in the quarter (Table 3). Debt was $47.9 billion, down from $52.3 billion at the beginning of the quarter due to the pay down of maturing debt. The company has access to credit facilities of $10.0 billion, which remain undrawn.

Total company backlog at quarter end was $529 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes First Quarter
(Dollars in Millions) 2024 2023 Change
Deliveries 83 130 (36) %
Revenues $4,653 $6,704 (31) %
Loss from operations ($1,143) ($615) NM
Operating margins (24.6) % (9.2) % NM

Commercial Airplanes first quarter revenue of $4.7 billion and operating margin of (24.6) percent primarily reflect lower 737 deliveries and 737-9 grounding customer considerations (Table 4).

During the quarter, the 737 program slowed production below 38 per month to incorporate improvements to its quality management system and reduce traveled work within its factory and supply chain. In addition, Commercial Airplanes is implementing a comprehensive action plan to address feedback from the FAA audit of 737 production.

Commercial Airplanes booked 125 net orders, including 85 737-10 airplanes for American Airlines and 28 777X airplanes for customers including Ethiopian Airlines. Commercial Airplanes delivered 83 airplanes during the quarter and backlog included over 5,600 airplanes valued at $448 billion.

Defense, Space & Security

Table 5. Defense, Space & Security First Quarter
(Dollars in Millions) 2024 2023 Change
Revenues $6,950 $6,539 6 %
Earnings/(loss) from operations $151 ($212) NM
Operating margins 2.2 % (3.2) % NM

Defense, Space & Security first quarter revenue was $7.0 billion. First quarter operating margin increased to 2.2 percent, primarily driven by higher volume and improved performance. Results also reflect $222 million of losses on certain fixed-price development programs.

During the quarter, Defense, Space & Security captured awards for 17 P-8A Poseidon aircraft for the Royal Canadian Air Force and German Navy, secured the final new-build production contract from the U.S. Navy for 17 F/A-18 Super Hornets, and was awarded an MQ-25 cost-type contract modification from the U.S. Navy including two additional test aircraft. Backlog at Defense, Space & Security was $61 billion, of which 31 percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services First Quarter
(Dollars in Millions) 2024 2023 Change
Revenues $5,045 $4,720 7 %
Earnings from operations $916 $847 8 %
Operating margins 18.2 % 17.9 % 0.3 pts

Global Services first quarter revenue of $5.0 billion and operating margin of 18.2 percent reflect higher commercial volume and favorable mix.

During the quarter, Global Services opened a maintenance facility in Jacksonville, Florida, supporting military customers and the U.S. Navy exercised options on a P-8 sustainment modification contract.

Additional Financial Information

Table 7. Additional Financial Information First Quarter
(Dollars in Millions) 2024 2023
Unallocated items, eliminations and other ($79) ($42)
Earnings/(loss) from operations
FAS/CAS service cost adjustment $302 $291
Other unallocated items and eliminations ($312) ($460)
Other income, net $277 $302
Interest and debt expense ($569) ($649)
Effective tax rate 6.1 % 14.3 %

Other unallocated items and eliminations primarily reflects timing of allocations.

Non-GAAP Measures Disclosures

We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:

Core Operating Earnings/(loss), Core Operating Margin and Core Earnings/(loss) Per Share

Core operating earnings/(loss) is defined as GAAP Earnings/(loss) from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as Core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP Diluted earnings/(loss) per share excluding the net earnings/(loss) per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings/(loss), core operating margin and core earnings/(loss) per share for purposes of evaluating and forecasting underlying business performance. Management believes these core measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is provided on page 12.

Free Cash Flow

Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 for reconciliation of free cash flow to GAAP operating cash flow.

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