FMP
Jan 28, 2025 3:03 PM - Davit Kirakosyan
Image credit: FMP
The Boeing Company (NYSE:BA) announced a challenging fourth quarter, reporting a significant revenue decline to $15.2 billion and a GAAP loss per share of ($5.46). On a core (non-GAAP) basis, the loss per share reached ($5.90), highlighting the financial strain caused by multiple factors, including a work stoppage by the International Association of Machinists and Aerospace Workers (IAM), charges related to defense programs, and expenses stemming from earlier workforce reductions.
Boeing's operating cash flow for the quarter was negative $3.5 billion, while its total cash and marketable securities stood at $26.3 billion. Over the course of 2024, the company delivered 348 commercial airplanes and recorded 279 net orders. The total backlog for Boeing remained robust at $521 billion, representing a pipeline of over 5,500 commercial aircraft.
The company's Commercial Airplanes division faced severe headwinds, with revenue falling 55% year-over-year to $4.8 billion and an operating margin of (43.9) percent. Similarly, the Defense, Space & Security segment reported a revenue of $5.4 billion and an operating margin of (41.9) percent, weighed down by $1.7 billion in pre-tax charges across multiple programs.
Despite these challenges, Boeing's Global Services segment emerged as a bright spot. The division generated $5.1 billion in revenue during the fourth quarter, achieving a healthy operating margin of 19.5 percent, driven by increased commercial activity and an improved product mix.
President and CEO Kelly Ortberg expressed determination to stabilize the company’s operations and rebuild trust with all stakeholders. Ortberg underscored Boeing’s commitment to making foundational changes to enhance performance, safety, and quality across the organization.
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