Boeing Reports Significant Financial Challenges, Net Loss of $7.9 Billion in Latest Quarter

Boeing Co. reported significant financial challenges in its latest 10-Q filing for the nine months ending September 30, 2024. Total revenues decreased to $51,275 million, down from $55,776 million in the same period of 2023, reflecting a decline of $4,501 million. The decrease was primarily attributed to a substantial drop in revenues from the Commercial Airplanes segment, which fell to $18,099 million from $23,420 million, largely due to lower aircraft deliveries and ongoing issues with the 737-9 grounding.

The company's profitability also suffered, with a net loss of $7,968 million for the nine months ended September 30, 2024, compared to a loss of $2,212 million in the prior year. This resulted in a basic loss per share of $12.91, significantly higher than the $3.64 reported in 2023. The loss from operations for the same period increased to $6,937 million from $1,056 million, driven by reach-forward losses on the 777X and 767 programs, as well as higher charges on fixed-price development programs in the Defense, Space & Security (BDS) segment.

Boeing's cash flow situation worsened, with net cash used by operating activities amounting to $8,630 million, a stark contrast to the $2,579 million provided in the same period last year. The company reported a total debt of $57.7 billion as of September 30, 2024, up from $52.3 billion at the end of 2023. Cash and cash equivalents decreased to $9,961 million from $12,691 million at year-end 2023.

Strategically, Boeing announced a plan to acquire Spirit AeroSystems Holdings, Inc. in an all-stock transaction valued at approximately $4.7 billion. This acquisition is expected to close in mid-2025, subject to regulatory approvals and the sale of Spirit's Airbus-related operations. Additionally, Boeing is facing operational disruptions due to a strike initiated by the International Association of Machinists and Aerospace Workers (IAM 751) on September 13, 2024, which has paused production of several aircraft models and adversely impacted financial performance.

The company has also taken measures to improve liquidity, including temporary furloughs, hiring freezes, and a planned workforce reduction of approximately 10%. Despite these challenges, Boeing maintains an investment-grade credit rating, although Moody's downgraded its ratings to Baa3/P-3 in April 2024, with further reviews initiated in September and October 2024.