Boeing reported the third quarter of 2022 with a revenue of $16.0bn and an operating cash flow of $3.2bn. Boeing’s Q3 results reflect a higher commercial volume and losses on fixed-price defense development programs. Boeing showed an increase in cash and investments in marketable securities to $14.3bn as compared to 11.4bn at the start of the Q3. The company has access to credit facilities of $12.0 billion, which remain undrawn and the backlog at Q3 end was $381bn.
Dave Calhoun, Boeing’s President and Chief Executive Officer, said: “We continue to make important strides in our turnaround and remain focused on our performance. We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022. At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defense development programs. We are squarely focused on maturing these programs, mitigating risks and delivering for our customers and their important missions.
Boeing commercial airplanes revenue showed an upward tick to $6.3bn mostly driven by the resumption of 787 deliveries and higher 737 deliveries. Boeing resumed 787 deliveries towards the end of August 2022, following comprehensive reviews to ensure each airplane meets the company's highest standards
“We remain in a challenging environment and have more work ahead to drive stability, improve our performance and ensure we're consistently delivering on our commitments. Despite the challenges, I'm proud of our team and the progress we've made to strengthen our company," added Calhoun.
Boeing reported a net order for 227 aircraft, including 167 - 737s, 27 – 767s s, 18 – 777s, and 15- 787airplanes. Boeing commercial airplanes delivered 112 airplanes with a backlog of over 4300 airplanes valued at $307bn.
Boeing Global Services revenue increased to $4.4 billion and the third-quarter operating margin increased to 16.5% primarily driven by higher commercial services volume and favorable mix, partially offset by lower government services volume.
At quarter-end, Boeing Capital's net portfolio balance was $1.6 billion. The change in other income was driven by the absence of a pension settlement charge recorded in the third quarter of 2021. Interest and debt expenses decreased due to a lower debt balance. The third quarter effective tax rate primarily reflects tax expense due to an increase in the valuation allowance.