Boeing $BA reported earnings per share (EPS) of -$2.90, compared to the forecast of -$1.69, and revenue of $16.9 billion, falling short of the forecasted $17.39 billion.
Boeing reported a larger quarterly loss due to ongoing issues in its defense and space sector, compounding the financial challenges faced by the U.S. aerospace manufacturer, which has already reduced commercial aircraft production to address a quality crisis.
For the second quarter, Boeing announced a net loss of $1.44 billion, a significant increase from the $149 million loss reported a year earlier.
The Defense, Space, and Security division, one of Boeing’s three main sectors, has experienced substantial losses in 2023 and 2022, attributed to cost overruns on fixed-price contracts. These contracts, while profitable, expose defense contractors to inflationary pressures that have impacted U.S. corporate earnings in recent years.
Previously, Boeing pursued fixed-price contracts aggressively before the pandemic, but it has now decided to shift away from these contracts to reduce losses, which amounted to $1.76 billion last year.
Boeing has appointed Robert K. “Kelly” Ortberg as the new President and Chief Executive Officer, effective August 8.
