Boeing Reports Q2 Loss of More Than US$1.4 Billion

DALLAS — American aerospace manufacturer Boeing reports a second-quarter loss of more than US$1.4 billion due to declining revenue.

Boeing's commercial jets and defense sector both lost money, resulting in a larger loss and lower revenue than predicted by Wall Street.

The poor results come at a critical time for Boeing. This month, the company agreed to plead guilty to a federal fraud allegation stemming from its 737 MAX airliner and two crashes that killed 346 people.

The FAA strengthened its control of the corporation after a door plug panel on an Alaska Airlines (AS) jet blew out, bringing back worries about production quality.

The manufacturer's second quarter results sees Boeing:

• Submitting comprehensive safety and quality plan to the Federal Aviation Administration (FAA)
• Announcing agreement to acquire Spirit AeroSystems in July; transaction expected to close mid-2025
• Experiencing a revenue of US$16.9 billion, GAAP loss per share of (US$2.33) and core (non-GAAP) loss per share of (US$2.90)
• Seeing an operating cash flow of (US$3.9) billion and free cash flow of (US$4.3) billion (non-GAAP)
• Holding a total company backlog of US$516 billion, including over 5,400 commercial airplanes

Other unallocated items and eliminations include a US$244 million profits charge for a fine that would be paid to the US Department of Justice under a newly filed agreement in federal district court, if accepted.

Commercial Aircraft Results

Commercial Airplanes' second-quarter sales of US$6.0 billion and operating margin of (11.9%) are principally due to decreased deliveries and expected higher period expenses, particularly research and development. During the quarter, the company filed its entire safety and quality plan with the FAA.

During the quarter, Boeing says the 737 program gradually increased production, and it remains on track to reach 38 per month by year-end. The company also intends for the 787 program to return to "five each month by the end of the year."

In July, the corporation announced an agreement to purchase Spirit AeroSystems, and the 777X program commenced FAA certification flight testing after receiving type inspection authorization.

Commercial Airplanes delivered 92 planes during the quarter, and the backlog was over 5,400 jets for US$437 billion.

"Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future," said Dave Calhoun, Boeing president and chief executive officer. Calhoun has been replaced by Kelly Ortberg as Boeing’s new President and CEO.

"We are executing on our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems. While we have more work ahead, the steps we're taking will help stabilize our operations and ensure Boeing is the company the world needs it to be. We are making important progress in our recovery and will continue to build trust through action and transparency."