Boeing’s Q4 earnings showed significant challenges, with a drop in revenue and losses deeper than expected. The company reported a revenue of $15.24 billion, falling short of the estimated $17.04 billion, marking a 31% decline from the same period last year. Core loss per share stood at $5.90, compared to the expected loss of $1.74. Operating cash flow was negative at $3.5 billion, primarily impacted by work stoppages, while free cash flow dropped by $4.1 billion. Boeing did not provide specific guidance for 2025 but expects operational improvements.
In Q4, Boeing’s segments showed varied performance. The Commercial Airplanes division saw a sharp revenue drop to $4.76 billion, down 55% YoY, with only 57 deliveries, a 64% decline. Operating margin for this segment was negative, at -43.9%, due to pre-tax charges on the 777X and 767 programs. However, the backlog remained strong, with over 5,500 planes valued at $435 billion.
Defense, Space & Security also faced challenges, reporting a 20% YoY decline in revenue to $5.41 billion. Operating margin was negative at -41.9%, with $1.7 billion in pre-tax charges on defense programs. The division’s backlog stood at $64 billion, with 29% from international orders.
On a positive note, the Global Services segment performed better, with revenue rising 6% YoY to $5.12 billion and an operating margin of 19.5%, up 2.1 percentage points from last year.
For the full year 2024, Boeing’s revenue was $66.52 billion, down 14% YoY, and the company posted a significantly wider net loss of $11.83 billion. Commercial airplane deliveries totaled 348, down 34% from 2023, while the backlog reached $521 billion.
Boeing provided some updates on its ongoing projects. The 737 program has resumed production, with plans to gradually increase the production rate. The 777X program has also seen progress, with FAA certification flight testing resuming and the first delivery expected in 2026.
