Boeing surpasses expectations: Despite defense and space setbacks. Boeing’s recent financial results had positives and challenges. The company exceeded analyst expectations due to higher aircraft deliveries and production, but faced losses in defense and space divisions, resulting in a quarterly loss. Boeing exceeded expectations with $2.6 billion in Q2 free cash flow. Cash flow guidance remained at $3 billion to $5 billion for the year. Boeing’s shares rose about 9% to $232.80, the highest since November 2021.
Boeing’s Q2 performance vs. Refinitiv consensus estimates: Adjusted loss per share: 82 cents vs. 88 cents. (10% shorter) Revenue: $19.75B vs. $18.45B.
Boeing and Airbus both faced production challenges post-Covid as airlines experienced delays in receiving new jets due to increased travel demands.
Boeing delivered 136 planes in Q2, up from 121 planes delivered last year. The company is increasing production of its Max aircraft from 31 to 38 jets per month. The forecast for 737 deliveries this year is 400-450 planes.
Boeing increased 787 Dreamliner production to four planes per month and plans to reach five per month by year-end. Around 80 Dreamliner planes will be delivered in 2023.
CEO Dave Calhoun stressed the need for efficient operations and stable supply chains to meet customer demands, given the continued strong demand in key markets.
Boeing had setbacks. The company expects delays in delivering the 737 Max 7, now scheduled for next year instead of this year. Boeing still on track for plane approval in 2023.
Q2 revenue increased by 18% YoY to $19.75 billion, but the company had a net loss of $149 million, or 25 cents per share. This compares to a profit of $160 million, or 32 cents per share, last year. The losses
were due to challenges in Boeing’s defense and space segments.
Boeing’s defense, space, and security unit had a loss of $527 million for the quarter, compared to a profit of $71 million last year. The loss came from a launch delay of the crewed Starliner spacecraft, higher production costs for the T-7A Red Hawk trainer jet, and production delays on the MQ-25 program, totaling $257 million, $189 million, and $68 million.
Despite challenges, Boeing remains focused on addressing issues while capitalizing on positive momentum in its commercial aircraft division. The company aims to maintain stability, meet customer commitments, and deliver reliable aircraft.