Boeing expects bigger than expected quarterly loss after a difficult 2024

Boeing anticipates a loss of around $4bn and a $5.46 loss per share, the company said in its preliminary fourth quarter results on January 23, 2025. The quarterly loss expected of $5.46 per share is far steeper than analysts' expectation of a $1.84 per share loss, according to LSEG data.

The manufacturer faced a challenging year including a six-week period of strike action from workers in its US West Coast factories during the second half of the year, production caps on its 737 MAX jet after the Flight 1282 incident, and supply chain constraints.

“Although we face near-term challenges, we took important steps to stabilise our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet,” said Kelly Ortberg, Boeing president and chief executive officer. Ortberg was appointed to the position in July 2024, taking on the mammoth task of putting Boeing back on track.

The US OEM has not made a profit since 2018. The striking workers secured a 38% general wage increase over four years.

Boeing said that it would recognise impacts to its financial results related to an IAM work stoppage and agreement, charges for certain defence, space and security programs and costs associated with workforce reductions announced last year, when it reports fourth quarter results on January 28, 2025.

The company also expects to report a quarterly revenue of $15.2bn and an operating cash flow loss of $3.5bn. Cash and investments in marketable securities totalled $26.3bn at the end of the quarter.

Boeing's commercial airplanes results will reflect impacts associated with the IAM work stoppage and agreement including lower deliveries and pre-tax earnings charges of $1.1bn on the 777X and 767 programs.

The 777X program pre-tax charge of $0.9bn reflects higher estimated labour costs associated with finalising the IAM agreement and will be incurred over the next several years, the company said in statement.

Ortberg also noted that the company restarted 737, 767 and 777/777X production, with the company remaining focused on the “hard work ahead”.

Boeing added that it still anticipates the first delivery of its 777-9 in 2026. The company's commercial aircraft segment expects to report fourth quarter revenue of $4.8bn and operating margin loss of 43.9%.

Boeing delivered 30 aircraft in December 2024 in its most recent report on January 14, 2025, more than half of its 67 deliveries in December 2023. The deliveries included 17 737 MAX deliveries, down from 44 a year prior.

Overall, Boeing delivered 57 aircraft in the fourth quarter of 2024, resulting in 348 commercial deliveries in total for the year. The company's backlog currently totals 5,595 aircraft.