Boeing Company has announced that its third-quarter financial results, set to be reported on October 23, will reflect the financial impacts of charges related to certain programs within its Commercial Airplanes and Defense, Space & Security divisions, as well as the effects of the IAM work stoppage. The company anticipates third-quarter revenue of approximately $17.8 billion, a GAAP loss per share of ($9.97), and an operating cash flow of ($1.3 billion). At the end of the quarter, Boeing’s cash and investments in marketable securities amounted to $10.5 billion.
Although we are currently facing short-term challenges, we are implementing crucial strategic decisions for our future,” stated Kelly Ortberg, Boeing’s President and CEO. “These decisive actions, along with significant structural changes within our organization, are essential for maintaining long-term competitiveness. We are also prioritizing critical areas to ensure our balance sheet supports investment, employee support, and customer delivery.
In the Commercial Airplanes segment, Boeing expects to incur pre-tax earnings charges of $3.0 billion related to the 777X and 767 programs. The company now projects the first delivery of the 777-9 in 2026 and the 777-8 freighter in 2028, leading to a pre-tax charge of $2.6 billion. This revised timeline and the associated financial impact stem from an updated assessment of certification timelines due to delays in the 777-9 flight testing, as well as anticipated delays from the IAM work stoppage. Additionally, Boeing plans to conclude production of the 767 freighter, resulting in a $0.4 billion pre-tax charge linked to the work stoppage. Beginning in 2027, the company will focus solely on producing 767-2C aircraft to support the KC-46A Tanker program. For the third quarter, Commercial Airplanes is expected to report revenue of $7.4 billion with an operating margin of (54.0) percent.
In the Defense, Space & Security division, Boeing anticipates pre-tax earnings charges of $2.0 billion across the T-7A, KC-46A, Commercial Crew, and MQ-25 programs. A $0.9 billion pre-tax charge for the T-7A program arises from higher estimated production costs anticipated in 2026 and beyond. The KC-46A program will reflect a $0.7 billion pre-tax charge due to the decision to cease production of the 767 freighter and the impacts of the IAM work stoppage. Overall, Defense, Space & Security is expected to report third-quarter revenue of $5.5 billion and an operating margin of (43.1) percent.
Caution Regarding Forward-Looking Statements
The preliminary financial results for the quarter ending September 30, 2024, as included in this announcement, are unaudited and subject to finalization. As such, these estimates may change based on ongoing management reviews and are subject to the completion of quarter-end financial and accounting procedures. These preliminary results represent management’s estimates and are considered forward-looking statements, which carry inherent risks and uncertainties.
Forward-looking statements are not guarantees of future performance and are subject to various factors that could cause actual results to differ significantly. Key risks include general economic conditions, reliance on commercial airline customers, the overall health of the production system, changes in government contracts, competition, and potential disruptions due to labor issues or other unforeseen events.
For additional information on these and other factors, please refer to our filings with the Securities and Exchange Commission, including the latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date it is made, and Boeing assumes no obligation to update or revise any forward-looking statements, except as required by law.
