Boeing’s 2024 final quarter and full-year results fall below expectations

Boeing has announced its financial results for both the final quarter (Q4) and the full year of 2024 with both falling well below market expectations. The planemaker ended Q4 with revenues of $15.2 billion, 31% lower than those of the same quarter in 2023, and a net loss of $3.8 billion. The operating cash outflow was $3.4 billion, compared to cash flow of $3.3 billion in Q4 2023.

The revenue of $15.2 billion fell short of market expectations, highlighting the adverse effects of operational disruptions and strategic challenges faced during the final quarter of 2024. In its report, the Boeing Company stated that the final quarter of 2024 had been extremely challenging for the company, with airplane production severely impacted by the prolonged industrial dispute involving members of the International Association of Machinists and Aerospace Workers, changes in certain defense programs, and the costs incurred through workforce reductions.These elements contributed to a GAAP loss per share of $5.46 and a core loss per share of $5.90. Operating cash flow was negative at $3.5 billion, with cash and marketable securities totaling $26.3 billion by the end of the quarter.

Peter Krocka / ShutterstockBoeing’s commercial airplanes segment faced a substantial decline in deliveries, with only 57 aircraft delivered compared to 157 in the same period in 2023. This resulted in a 55% drop in revenue for the commercial airplanes division, totaling $4.8 billion. Full-year deliveries of commercial airplanes for 2024 rounded out at 348 compared to 528 in 2023.  

On a brighter note, Boeing’s commercial airplane division ended 2024 by adding 204 net orders to its books, including an order for 100 737 MAX 10 (plus 100 options) from Pegasus Airlines of Turkey while flydubai firmed up an order for 30 787-9 widebodies.

Boeing’s defense, space, and security segment also experienced a 20% decrease in revenue, amounting to $5.4 billion. Meanwhile, the global services segment reported a 6% increase in revenue, reaching $5.1 billion, attributed to higher commercial volumes and product mix.

In a statement issued by the company on January 28, 2024, Kelly Ortberg, the President, and Chief Executive Officer (CEO) of Boeing, said that despite the disappointing results, the company had made progress on key areas to stabilize its operations during Q4 2024.

“My team and I are focused on making the fundamental changes needed to fully recover our company’s performance and restore trust with our customers, employees, suppliers, investors, regulators, and all others who are counting on us,” he said.

For the whole of 2024, full-year revenues reached $66.5 billion, a number that represents a drop of 14% over 2023, with net losses worsening significantly to $11.8 billion. The company ended 2023 with a net loss of $2.2 billion. Similarly, the cash outflow was $12 billion, compared to cash flow of $5.9 billion in 2023.

Vytautas Kielaitis / ShutterstockOutlook for 2025

Looking ahead, Boeing is planning to gradually increase production rates throughout 2025 to meet the burgeoning demand for its range of commercial airplanes and to deal with a bulging advance order book that has been hit with delays over recent months. In particular, the company has outlined plans to gradually increase production rates for its 737 MAX program, which resumed production during Q4 of 2024.

The 787 program is also set to expand its operations in South Carolina, with a production rate increasing upwards from the current five aircraft per month. Meanwhile, the 777X program has resumed FAA certification flight testing, targeting the first delivery of the 777-9 in 2026.

BoeingBoeing’s order backlog remains substantial, with a total company backlog of $521 billion, which includes orders for over 5,500 new commercial airplanes valued at $435 billion. While Ortberg acknowledged that the company’s strong order book will provide a foundation for future growth and recovery, he acknowledged the need to address ongoing challenges in its defense, space, and security segment, which continue to face significant charges on key programs.

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