Boeing Posts third Q3 result as Struggles Persist

This year has been challenging for Boeing, marked by significant losses and a series of incidents, including mid-air mechanical issues and engine blowouts that have continued to affect the company’s performance.

The Boeing Company recently released its third-quarter results, revealing the extent of its financial struggles. The company recorded third-quarter revenue of $17.8 billion, with a GAAP loss per share of ($9.97) and a core loss per share (non-GAAP) of ($10.44).

The financial difficulties were primarily attributed to the impact of the International Association of Machinists (IAM) work stoppage and previously announced charges related to commercial and defense programs. Boeing also reported an operating cash flow of ($1.3) billion and free cash flow of ($2.0) billion (non-GAAP).

Boeing’s third-quarter net loss amounted to $6.17 billion, the second-highest quarterly loss since mid-2018. Revenue for the period declined by 1% to $17.8 billion, reflecting ongoing struggles to recover from manufacturing issues and multiple federal investigations.

The company’s financial results were further weighed down by a pre-tax charge of around $5 billion, as it continues to grapple with the aftermath of a mid-air panel blowout incident in January and the IAM strike in September, which led to the shutdown of assembly plants in the Seattle area.

On a per-share basis, Boeing reported a loss of $9.97, with an adjusted loss of $10.44 per share, exceeding analysts’ expectations. Zacks Investment Research analysts had projected a loss of $10.34 per share, while Visible Alpha’s consensus was a loss of $8.89 per share. Despite these losses, the revenue of $17.84 billion matched Wall Street estimates, although it fell short of the $18.12 billion analysts had anticipated and the $18.10 billion reported a year earlier.

Addressing the company’s outlook, Kelly Ortberg, Boeing President and CEO, stated, “It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again. Going forward, we will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution, while setting the foundation for the future of Boeing.”