Boeing reported losses of $3.4 billion in the last quarter of 2024
Overwhelmed by the workers' strike and costs associated with its commercial and military programs, Boeing came close to running out of cash in the fourth quarter of 2024.
The Boeing Company reported that it faced a critical financial position in the fourth quarter of 2024, with a negative cash flow of nearly $3.5 billion, partly due to a workers' strike that disrupted its operations. The company, which will report its final financial results on January 28, revealed that its quarterly revenue will amount to $15.2 billion.
The strike, led by the International Association of Machinists and Aerospace Workers (IAM) union, lasted 53 days, from September 13 until the approval of a new contract on October 31. Although employees returned to work on November 12, the reintegration process and year-end holidays delayed the recovery of production.
In this context, Boeing recorded a loss of $3.4 billion ($5.46 per share). Despite these results, the company managed to raise $25 billion in cash and marketable securities, ending the quarter with $26.3 billion in financial reserves.
Extraordinary charges and complications in key programs
Boeing incurred a charge of $1.1 billion in its commercial airplane programs, including $900 million related to labor costs from the agreement with IAM, which will mainly impact the 777X and 767 programs. The delivery of the first 777-9 model remains scheduled for 2026.
In the Defense, Space, and Security division, charges of $1.7 billion were recognized across programs such as the KC-46A, T-7A, Commercial Crew (Starliner), VC-25B (Air Force One), and MQ-25. Among them, the KC-46A program incurred a charge of $800 million due to increased manufacturing costs, while the T-7A program added $500 million due to higher cost estimates for production lots starting in 2026.
Measures to stabilize the business
Kelly Ortberg, president and CEO of Boeing, highlighted the actions taken to stabilize the company, including the agreement with the IAM union and the resumption of production in the 737, 767, and 777/777X programs. "Although we face short-term challenges, our team is focused on building a new future for Boeing," Ortberg stated.
The Commercial Airplanes division expects $4.8 billion in revenue for the fourth quarter, with a negative operating margin of 43.9%. Meanwhile, the Defense, Space, and Security division forecasts $5.4 billion in revenue and a negative operating margin of 41.9%.
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