Boeing has recorded third quarter revenue of $18.1 billion, GAAP loss per share of ($2.70) and core loss per share (non-GAAP) of ($3.26). The company stated that the results were impacted by unfavourable defence performance and lower 737 deliveries. Boeing reported operating cash flow of $0.0 billion and free cash flow of ($0.3) billion (non-GAAP).
"We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term," said Dave Calhoun, Boeing president and chief executive officer. "We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand. The important work we're doing to add rigor around our quality systems and build a culture of transparently bringing forward any issue, no matter the size, can bring short-term challenges – but it is how we set ourselves on the right course for our long-term future. Leading with safety, quality and transparency, we will continue to restore our operational and financial strength."
Cash and investments in marketable securities totaled $13.4 billion, compared to $13.8 billion at the beginning of the quarter. Boeing has access to credit facilities of $10.0 billion, which remain undrawn. Total company backlog at quarter end was $469 billion.
Boeing Commercial Airplanes third quarter revenue increased to $7.9 billion driven by higher 787 deliveries. An operating margin of (8.6) percent reflects those lower 737 deliveries as well as abnormal costs and period expenses, including research and development, said Boeing.
In an update on the manufacturing issue with the aft pressure bulkhead section of certain 737 airplanes, Boeing confirmed again that near-term deliveries and production would be impacted as the program performs necessary inspections and rework, noting that the company now expects to deliver 375-400 airplanes this year. Even so, Boeing says that suppliers are continuing with planned rate increases, and that it expects to complete the final assembly transition to 38 per month by year-end, with plans to increase to 50 per month in the 2025/2026 timeframe.
Boeing again confirmed that 787 program is transitioning production to five per month with plans remaining to increase to 10 per month in the 2025/2026 timeframe. The program still expects to deliver 70-80 airplanes this year.
During the quarter, Commercial Airplanes booked 398 net orders, including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes for United Airlines, and 39 787 airplanes for Saudi Arabian Airlines. Commercial Airplanes delivered 105 airplanes during the quarter and backlog included over 5,100 airplanes valued at $392 billion.
Boeing Global Services third quarter revenue of $4.8 billion and operating margin of 16.3 percent reflect higher commercial volume and mix.
During the quarter, Global Services delivered the 150th 737-800 Boeing Converted Freighter, received an order from the U.S. Navy for P-8 trainer upgrades and signed a digital maintenance solution agreement with Philippine Airlines for Airplane Health Management.