REG-Boeing Company: 1st Quarter Results
23/04/2025 12:45
Boeing Reports First Quarter Results
ARLINGTON, Va., April 23, 2025 --
First Quarter 2025
* 737 production gradually increased in the quarter; still expected to reach
38 per month this year
* Revenue increased to $19.5 billion primarily reflecting 130 commercial
deliveries
* GAAP loss per share of ($0.16) and core (non-GAAP)* loss per share of
($0.49)
* Operating cash flow of ($1.6) billion and free cash flow of ($2.3) billion
(non-GAAP)*
* Total company backlog grew to $545 billion, including over 5,600 commercial
airplanes
Table 1. Summary Financial Results First Quarter
(Dollars in Millions, except per share data) 2025 2024 Change
Revenues $19,496 $16,569 18 %
GAAP
Earnings/(loss) from operations $461 ($86) NM
Operating margins 2.4 % (0.5) % NM
Net loss ($31) ($355) NM
Basic loss per share ($0.16) ($0.56) NM
Operating cash flow ($1,616) ($3,362) NM
Non-GAAP*
Core operating earnings/(loss) $199 ($388) NM
Core operating margins 1.0 % (2.3) % NM
Core loss per share ($0.49) ($1.13) NM
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
The Boeing Company [NYSE: BA] recorded first quarter revenue of
$19.5 billion, GAAP loss per share of ($0.16) and core loss per share
(non-GAAP)* of ($0.49) (Table 1). The company reported operating cash flow of
($1.6) billion and free cash flow of ($2.3) billion (non-GAAP)*. Results
primarily reflect improved operational performance and commercial delivery
volume. Results also reflect only tariffs enacted as of March 31.
"Our company is moving in the right direction as we start to see improved
operational performance across our businesses from our ongoing focus on safety
and quality," said Kelly Ortberg, Boeing president and chief executive
officer. "We continue to execute our plan, are seeing early positive results
and remain committed to making the fundamental changes needed to fully recover
the company's performance while navigating the current environment."
Table 2. Cash Flow First Quarter
(Millions) 2025 2024
Operating cash flow ($1,616) ($3,362)
Less additions to property, plant & equipment ($674) ($567)
Free cash flow* ($2,290) ($3,929)
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
Operating cash flow was ($1.6) billion in the quarter reflecting higher
commercial deliveries, as well as working capital timing (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances Quarter End
(Billions) 1Q 2025 4Q 2024
Cash and investments in marketable securities 1 $23.7 $26.3
Consolidated debt $53.6 $53.9
1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities totaled $23.7 billion, compared
to $26.3 billion at the beginning of the quarter, primarily driven by the free
cash flow usage in the quarter (Table 3). Debt was $53.6 billion, down from
$53.9 billion at the beginning of the quarter due to the pay down of maturing
debt. The company maintains access to credit facilities of $10.0 billion,
which remain undrawn.
Total company backlog at quarter end was $545 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes First Quarter
(Dollars in Millions) 2025 2024 Change
Deliveries 130 83 57 %
Revenues $8,147 $4,653 75 %
Loss from operations ($537) ($1,143) NM
Operating margins (6.6) % (24.6) % NM
Commercial Airplanes first quarter revenue of $8.1 billion and operating
margin of (6.6) percent primarily reflect higher deliveries (Table 4).
The 737 program gradually increased production in the quarter and maintains
plans to reach 38 per month this year. The 787 program continued to stabilize
production at five per month in the quarter and still expects to increase to
seven per month this year. The 777X program began expanded FAA certification
flight testing in the quarter, and the company still anticipates first
delivery of the 777-9 in 2026.
Commercial Airplanes booked 221 net orders in the quarter, including 20 777-9
and 20 787-10 airplanes for Korean Air and 50 737-8 airplanes for BOC
Aviation. Commercial Airplanes delivered 130 airplanes during the quarter and
backlog included over 5,600 airplanes valued at $460 billion.
Defense, Space & Security
Table 5. Defense, Space & Security First Quarter
(Dollars in Millions) 2025 2024 Change
Revenues $6,298 $6,950 (9) %
Earnings from operations $155 $151 3 %
Operating margins 2.5 % 2.2 % 0.3 pts
Defense, Space & Security first quarter revenue was $6.3 billion. First
quarter operating margin of 2.5 percent reflects stabilizing operational
performance.
During the quarter, Defense, Space & Security was selected by the U.S. Air
Force for a contract to design, build and deliver the F-47, its
next-generation fighter aircraft. This order is not included in backlog at the
end of the quarter pending completion of the source selection and evaluation
review process. Backlog at Defense, Space & Security was $62 billion, of which
29 percent represents orders from customers outside the U.S.
Global Services
Table 6. Global Services First Quarter
(Dollars in Millions) 2025 2024 Change
Revenues $5,063 $5,045 — %
Earnings from operations $943 $916 3 %
Operating margins 18.6 % 18.2 % 0.4 pts
Global Services first quarter revenue was $5.1 billion. First quarter
operating margin of 18.6 percent reflects favorable performance and mix.
In the quarter, Global Services delivered the 100th 767-300 Boeing Converted
Freighter to SF Airlines and received a modification contract from the U.S.
Air Force to integrate electronic warfare systems for the F-15 Eagle. In
April, the company entered an agreement to sell portions of its Digital
Aviation Solutions business, and the transaction is expected to close by the
end of 2025 subject to regulatory approval and customary closing conditions.
Additional Financial Information
Table 7. Additional Financial Information First Quarter
(Dollars in Millions) 2025 2024
Revenues
Unallocated items, eliminations and other ($12) ($79)
Loss from operations
Unallocated items, eliminations and other ($362) ($312)
FAS/CAS service cost adjustment $262 $302
Other income, net $323 $277
Interest and debt expense ($708) ($569)
Effective tax rate 140.8 % 6.1 %
Unallocated items, eliminations and other primarily reflects timing of
allocations. The first quarter effective tax rate primarily reflects an
increase in the valuation allowance.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under
Generally Accepted Accounting Principles in the United States of America
(GAAP) with certain non-GAAP financial information. The non-GAAP financial
information presented excludes certain significant items that may not be
indicative of, or are unrelated to, results from our ongoing business
operations. We believe that these non-GAAP measures provide investors with
additional insight into the company's ongoing business performance. These
non-GAAP measures should not be considered in isolation or as a substitute for
the related GAAP measures, and other companies may define such measures
differently. We encourage investors to review our financial statements and
publicly-filed reports in their entirety and not to rely on any single
financial measure. The following definitions are provided:
Core Operating Earnings/(Loss), Core Operating Margins and Core
Earnings/(Loss) Per Share
Core operating earnings/(loss) is defined as GAAP Earnings/(loss) from
operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service
cost adjustment represents the difference between the Financial Accounting
Standards (FAS) pension and postretirement service costs calculated under GAAP
and costs allocated to the business segments. Core operating margins is
defined as Core operating earnings/(loss) expressed as a percentage of
revenue. Core earnings/(loss) per share is defined as GAAP Diluted
earnings/(loss) per share excluding the net earnings/(loss) per share impact
of the FAS/CAS service cost adjustment and Non-operating pension and
postretirement expenses. Non-operating pension and postretirement expenses
represent the components of net periodic benefit costs other than service
cost. Pension costs allocated to BDS and BGS businesses supporting government
customers are computed in accordance with U.S. Government Cost Accounting
Standards (CAS), which employ different actuarial assumptions and accounting
conventions than GAAP. CAS costs are allocable to government contracts. Other
postretirement benefit costs are allocated to all business segments based on
CAS, which is generally based on benefits paid. Management uses core operating
earnings/(loss), core operating margins and core earnings/(loss) per share for
purposes of evaluating and forecasting underlying business performance.
Management believes these core measures provide investors additional insights
into operational performance as they exclude non-service pension and
post-retirement costs, which primarily represent costs driven by market
factors and costs not allocable to government contracts. A reconciliation of
these non-GAAP measures to the most directly comparable GAAP measure is
provided on page 12.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures
for property, plant and equipment. Management believes free cash flow provides
investors with an important perspective on the cash available for
shareholders, debt repayment, and acquisitions after making the capital
investments required to support ongoing business operations and long term
value creation. Free cash flow does not represent the residual cash flow
available for discretionary expenditures as it excludes certain mandatory
expenditures such as repayment of maturing debt. Management uses free cash
flow as a measure to assess both business performance and overall liquidity.
See Table 2 on page 2 for a reconciliation of free cash flow to the most
directly comparable GAAP measure, operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as "may,"
"will," "should," "expects," "intends," "projects," "plans," "believes,"
"estimates," "targets," "anticipates," and other similar words or expressions,
or the negative thereof, generally can be used to help identify these
forward-looking statements. Examples of forward-looking statements include
statements relating to our future financial condition and operating results,
industry projections and outlooks, plans, objectives and goals, as well as any
other statement that does not directly relate to any historical or current
fact. Forward-looking statements are based on expectations and assumptions
that we believe to be reasonable when made, but that may not prove to be
accurate.
These statements are not guarantees and are subject to risks, uncertainties,
and changes in circumstances that are difficult to predict. Many factors could
cause actual results to differ materially and adversely from these
forward-looking statements. Among these factors are risks related to: (1)
general conditions in the economy and our industry, including those due to
regulatory changes; (2) our reliance on our commercial airline customers; (3)
the overall health of our aircraft production system, production quality
issues, commercial airplane production rates, our ability to successfully
develop and certify new aircraft or new derivative aircraft, and the ability
of our aircraft to meet stringent performance and reliability standards; (4)
changing budget and appropriation levels and acquisition priorities of the
U.S. government, as well as significant delays in U.S. government
appropriations; (5) our dependence on our subcontractors and suppliers, as
well as the availability of highly skilled labor and raw materials; (6) work
stoppages or other labor disruptions; (7) competition within our markets; (8)
our non-U.S. operations and sales to non-U.S. customers, including tariffs,
trade restrictions and government actions; (9) changes in accounting
estimates; (10) our pending acquisition of Spirit AeroSystems Holdings, Inc.
(Spirit), including the satisfaction of closing conditions in the expected
timeframe or at all; (11) realizing the anticipated benefits of mergers,
acquisitions, joint ventures/strategic alliances or divestitures, including
anticipated synergies and quality improvements related to our pending
acquisition of Spirit; (12) our dependence on U.S. government contracts; (13)
our reliance on fixed-price contracts; (14) our reliance on cost-type
contracts; (15) contracts that include in-orbit incentive payments; (16)
management of a complex, global IT infrastructure; (17) compromised or
unauthorized access to our, our customers' and/or our suppliers' information
and systems; (18) potential business disruptions, including threats to
physical security or our information technology systems, extreme weather
(including effects of climate change) or other acts of nature, and pandemics
or other public health crises; (19) potential adverse developments in new or
pending litigation and/or government inquiries or investigations; (20)
potential environmental liabilities; (21) effects of climate change and legal,
regulatory or market responses to such change; (22) credit rating agency
actions and our ability to effectively manage our liquidity; (23) substantial
pension and other postretirement benefit obligations; (24) the adequacy of our
insurance coverage; (25) customer and aircraft concentration in our customer
financing portfolio; (26) the dilutive effect of future issuances of our
common stock; and (27) the preferential treatment of our 6.00% mandatory
convertible preferred stock.
Additional information concerning these and other factors can be found in our
filings with the Securities and Exchange Commission, including our most recent
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 on which
it is made, and we assume no obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events, or otherwise, except as required by law.
Contact:
Investor Relations: Matt Welch or David Dufault BoeingInvestorRelations@boeing.com
Communications: Wilson Chow media@boeing.com
The Boeing Company and Subsidiaries Consolidated Statements of Operations (Unaudited)
Three months ended
March 31
(Dollars in millions, except per share data) 2025 2024
Sales of products $16,147 $13,268
Sales of services 3,349 3,301
Total revenues 19,496 16,569
Cost of products (14,379) (12,064)
Cost of services (2,700) (2,629)
Total costs and expenses (17,079) (14,693)
2,417 1,876
Income from operating investments, net 3 67
General and administrative expense (1,112) (1,161)
Research and development expense, net (844) (868)
Loss on dispositions, net (3)
Earnings/(loss) from operations 461 (86)
Other income, net 323 277
Interest and debt expense (708) (569)
Earnings/(loss) before income taxes 76 (378)
Income tax (expense)/benefit (107) 23
Net loss (31) (355)
Less: net earnings/(loss) attributable to noncontrolling interest 6 (12)
Net loss attributable to Boeing shareholders ($37) ($343)
Less: Mandatory convertible preferred stock dividends accumulated during the period 86
Net loss attributable to Boeing common shareholders ($123) ($343)
Basic loss per share ($0.16) ($0.56)
Diluted loss per share ($0.16) ($0.56)
The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited)
(Dollars in millions, except per share data) March 31 December 31
2025 2024
Assets
Cash and cash equivalents $10,142 $13,801
Short-term and other investments 13,532 12,481
Accounts receivable, net 3,204 2,631
Unbilled receivables, net 9,031 8,363
Current portion of financing receivables, net 202 207
Inventories 89,077 87,550
Other current assets, net 2,474 2,965
Total current assets 127,662 127,998
Financing receivables and operating lease equipment, net 308 314
Property, plant and equipment, net of accumulated depreciation of $23,193 and $22,925 11,459 11,412
Goodwill 8,091 8,084
Acquired intangible assets, net 1,904 1,957
Deferred income taxes 137 185
Investments 1,001 999
Other assets, net of accumulated amortization of $1,160 and $1,085 5,932 5,414
Total assets $156,494 $156,363
Liabilities and equity
Accounts payable $11,034 $11,364
Accrued liabilities 23,576 24,103
Advances and progress billings 61,114 60,333
Short-term debt and current portion of long-term debt 7,930 1,278
Total current liabilities 103,654 97,078
Deferred income taxes 162 122
Accrued retiree health care 2,146 2,176
Accrued pension plan liability, net 5,909 5,997
Other long-term liabilities 2,260 2,318
Long-term debt 45,688 52,586
Total liabilities 159,819 160,277
Shareholders' equity:
Mandatory convertible preferred stock, 6.00% Series A, par value $1.00 - 6 6
20,000,000 shares authorized; 5,750,000 shares issued; aggregate liquidation preference $5,750
Common stock, par value $5.00 – 1,200,000,000 shares authorized; 5,061 5,061
1,012,261,159 shares issued
Additional paid-in capital 19,008 18,964
Treasury stock, at cost - 258,889,678 and 263,044,840 shares (31,879) (32,386)
Retained earnings 15,239 15,362
Accumulated other comprehensive loss (10,760) (10,915)
Total shareholders' deficit (3,325) (3,908)
Noncontrolling interests (6)
Total equity (3,325) (3,914)
Total liabilities and equity $156,494 $156,363
The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows
(Unaudited)
Three months ended
March 31
(Dollars in millions) 2025 2024
Cash flows – operating activities:
Net loss ($31) ($355)
Adjustments to reconcile net loss to net cash used by operating activities:
Non-cash items –
Share-based plans expense 135 119
Treasury shares issued for 401(k) contribution 418 606
Depreciation and amortization 466 442
Investment/asset impairment charges, net 7 21
Loss on dispositions, net 3
Other charges and credits, net 99 10
Changes in assets and liabilities –
Accounts receivable (570) (328)
Unbilled receivables (671) (1,357)
Advances and progress billings 781 2,718
Inventories (1,521) (3,778)
Other current assets (29) (249)
Accounts payable (95) (264)
Accrued liabilities (386) (666)
Income taxes receivable, payable and deferred 26 (59)
Other long-term liabilities (151) (83)
Pension and other postretirement plans (150) (261)
Financing receivables and operating lease equipment, net 12 79
Other 41 43
Net cash used by operating activities (1,616) (3,362)
Cash flows – investing activities:
Payments to acquire property, plant and equipment (674) (567)
Proceeds from disposals of property, plant and equipment 3 11
Contributions to investments (8,797) (243)
Proceeds from investments 7,750 2,907
Other 1 (34)
Net cash used by investing activities (1,717) 2,074
Cash flows – financing activities:
New borrowings 29 27
Debt repayments (295) (4,442)
Employee taxes on certain share-based payment arrangements (14) (65)
Dividends paid on mandatory convertible preferred stock (72)
Other 14 18
Net cash used by financing activities (338) (4,462)
Effect of exchange rate changes on cash and cash equivalents 12 (28)
Net decrease in cash & cash equivalents, including restricted (3,659) (5,778)
Cash & cash equivalents, including restricted, at beginning of year 13,822 12,713
Cash & cash equivalents, including restricted, at end of period 10,163 6,935
Less restricted cash & cash equivalents, included in Investments 21 21
Cash & cash equivalents at end of period $10,142 $6,914
The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited)
Three months ended March 31
(Dollars in millions) 2025 2024
Revenues:
Commercial Airplanes $8,147 $4,653
Defense, Space & Security 6,298 6,950
Global Services 5,063 5,045
Unallocated items, eliminations and other (12) (79)
Total revenues $19,496 $16,569
Earnings/(loss) from operations:
Commercial Airplanes ($537) ($1,143)
Defense, Space & Security 155 151
Global Services 943 916
Segment operating earnings/(loss) 561 (76)
Unallocated items, eliminations and other (362) (312)
FAS/CAS service cost adjustment 262 302
Earnings/(loss) from operations 461 (86)
Other income, net 323 277
Interest and debt expense (708) (569)
Earnings/(loss) before income taxes 76 (378)
Income tax (expense)/benefit (107) 23
Net loss (31) (355)
Less: net earnings/(loss) attributable to noncontrolling interest 6 (12)
Net loss attributable to Boeing shareholders ($37) ($343)
Less: Mandatory convertible preferred stock dividends accumulated during the period 86
Net loss attributable to Boeing common shareholders ($123) ($343)
Research and development expense, net:
Commercial Airplanes $534 $518
Defense, Space & Security 199 235
Global Services 29 26
Other 82 89
Total research and development expense, net $844 $868
Unallocated items, eliminations and other:
Share-based plans ($30) $10
Deferred compensation 5 (30)
Amortization of previously capitalized interest (21) (23)
Research and development expense, net (82) (89)
Eliminations and other unallocated items (234) (180)
Sub-total (included in Core operating loss) (362) (312)
Pension FAS/CAS service cost adjustment 193 230
Postretirement FAS/CAS service cost adjustment 69 72
FAS/CAS service cost adjustment $262 $302
Total ($100) ($10)
The Boeing Company and Subsidiaries Operating and Financial Data (Unaudited)
Deliveries Three months ended March 31
Commercial Airplanes 2025 2024
737 105 67
767 5 3
777 7 —
787 13 13
Total 130 83
Defense, Space & Security
AH-64 Apache (New) 4 —
AH-64 Apache (Remanufactured) 11 6
CH-47 Chinook (New) 1 1
CH-47 Chinook (Renewed) 2 1
F-15 Models 1 1
F/A-18 Models 5 1
KC-46 Tanker — 3
MH-139 1 —
P-8 Models 1 1
Total 1 26 14
1 Deliveries of new-build production units, including remanufactures and modifications
Total backlog (Dollars in millions) March 31 December 31
2025 2024
Commercial Airplanes $460,447 $435,175
Defense, Space & Security 61,567 64,023
Global Services 22,036 21,403
Unallocated items, eliminations and other 686 735
Total backlog $544,736 $521,336
Contractual backlog $523,964 $498,802
Unobligated backlog 20,772 22,534
Total backlog $544,736 $521,336
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core
operating loss, core operating margins, and core loss per share with the most
directly comparable GAAP financial measures of loss from operations, operating
margins, and diluted loss per share. See page 5 of this release for additional
information on the use of these non-GAAP financial measures.
(Dollars in millions, except per share data) First Quarter 2025 First Quarter 2024
$ millions Per Share $ millions Per Share
Revenues $19,496 $16,569
(Loss)/earnings from operations (GAAP) 461 (86)
Operating margins (GAAP) 2.4 % (0.5) %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (193) (230)
Postretirement FAS/CAS service cost adjustment (69) (72)
FAS/CAS service cost adjustment (262) (302)
Core operating (loss)/earnings (non-GAAP) $199 ($388)
Core operating margins (non-GAAP) 1.0 % (2.3) %
Diluted loss per share (GAAP) ($0.16) ($0.56)
Pension FAS/CAS service cost adjustment ($193) ($0.26) ($230) ($0.37)
Postretirement FAS/CAS service cost adjustment (69) (0.09) (72) (0.12)
Non-operating pension income (43) (0.06) (123) (0.20)
Non-operating postretirement income (5) (0.01) (18) (0.03)
Provision for deferred income taxes on adjustments 1 65 0.09 93 0.15
Subtotal of adjustments ($245) ($0.33) ($350) ($0.57)
Core loss per share (non-GAAP) ($0.49) ($1.13)
Diluted weighted average common shares outstanding (in millions) 753.4 612.9
1 The income tax impact is calculated using the U.S. corporate statutory tax rate.
SOURCE Boeing
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