Boeing narrowed its third-quarter loss as defense revenue surged, though Chief Executive Kelly Ortberg warned employees the company still has “more work to do.”
Here is how Boeing’s third-quarter results compared with Wall Street consensus estimates compiled by LSEG:
- Adjusted loss per share: 34 cents vs. an expected loss of 21 cents
- Revenue: $24.19 billion vs. $23.84 billion expected
For the three months ended September 30, Boeing reported a net loss of $116 million, or 26 cents per share, compared with a $5.34 billion loss, or $7.14 per share, a year earlier. Excluding one-time items, the adjusted loss was 34 cents per share. The prior-year period included a nearly $5 billion charge tied to the long-delayed 777X program.
Revenue rose 4% year-over-year to $24.19 billion. Free cash flow improved to $464 million from $238 million in the third quarter of 2023.
Defense, Space & Security revenue climbed 15% to $7.94 billion.
Boeing delivered 161 commercial airplanes in the quarter, one more than a year ago.
Commercial Airplanes revenue fell 3% to $10.72 billion. The segment posted a negative operating margin of 6.5%, attributed to a less favorable delivery mix, higher projected costs linked to future production-rate adjustments, and elevated supply-chain cost estimates.
Executives will brief investors on the pace of production increases during a quarterly earnings call Tuesday at 10:30 a.m. ET.
The company is currently building roughly 47 737 Max jets per month and targeting higher output. Ortberg told investors last month that stabilizing production is taking “a little bit longer” than anticipated, with output increases expected next year.
“Looking ahead, expectations are rising, and they should,” Ortberg wrote in a note to staff Tuesday. “That means elevating our performance through lean, productivity and efficiency improvements in our day-to-day work while upholding our high levels of safety and quality.”
Aircraft production and deliveries are central to Boeing’s recovery, as the bulk of an aircraft’s price is collected upon delivery.
Recent developments provided some upside. The U.S. Navy selected Boeing to develop its next-generation fighter jet.
Additionally, the Federal Aviation Administration last week certified the 737 Max 10, the largest variant in the Max family. That followed the Max 7 certification in August and completed the certification process for the entire Max line.