Boeing has recorded second quarter 2023 revenue of $19.8bn - an 18% lift on 2022 second quarter results - which the planemaker said reflected higher commercial volumes thanks to 136 deliveries. However, Boeing posted a $99 million operating loss and $149 net loss for the quarter, which was lower than expected.
The company generated operating cash flow of $2.9 billion and free cash flow of $2.6 billion. Boeing's backlog of $440 billion includes more than 4,800 commercial planes. Debt was $52.3 billion, down from $55.4 billion at the beginning of the quarter due to the pay down of maturing debt. Boeing said that it maintains access to credit facilities of $12.0 billion, which remain undrawn.
"We had a solid second quarter with improved deliveries and strong free cash flow generation. We are well positioned to meet the operational and financial goals we set for this year and for the long term," said Dave Calhoun, Boeing president and chief executive officer. "While we have more work ahead, we are making progress in our recovery and driving stability in our factories and the supply chain to meet our customer commitments. With demand strong, we're steadily increasing our production rates across key programs and growing investments in our people, products and technologies."
Commercial Airplanes second quarter revenue increased to $8.8 billion driven by higher 787 deliveries, while Boeing explained that a second quarter operating margin of (4.3) percent reflected "abnormal costs and period expenses, including research and development".
Boeing confirmed that the 737 program was transitioning production to 38 per month and plans to reach 50 per month in the 2025/2026 timeframe. The program still expects to deliver 400-450 airplanes this year, said the planemaker.
The 787 program has increased production to four per month with plans to ramp to five per month in late 2023 and 10 per month in the 2025/2026 timeframe. Boeing still expects to deliver 70-80 787s this year.
During the quarter, Commercial Airplanes booked 460 net orders, including 220 for Air India and 39 for Riyadh Air, and secured a commitment from Ryanair for up to 300 737 MAX airplanes. Commercial Airplanes delivered 136 airplanes during the quarter and backlog included over 4,800 airplanes valued at $363 billion.
Global Services second quarter revenue of $4.7 billion and operating margin of 18.0 percent reflect higher commercial volume and favourable mix, said Boeing. During the quarter, Global Services announced expansion in Poland with a new parts distribution site, collaboration with CAE to enhance and expand training solutions and Japan Airlines adopted Boeing Insight Accelerator for its 787 fleet.