- Boeing (NYSE:BA) reported its largest annual loss since 2020, with a negative adjusted free cash flow of US$4.10 billion in Q4
- The company posted a basic loss of US$5.46 per share, matching a preliminary figure that equated to about US$3.86 billion
- Overall net losses for 2024 amounted to US$11.83 billion, deepening from a loss of US$2.24 billion in the prior year
- Boeing stock (NYSE:BA) last traded at US$175.16
Boeing (NYSE:BA) has reported its largest annual loss since 2020, with a negative adjusted free cash flow of US$4.10 billion in Q4.
This comes as the company grapples with the fallout from a prolonged machinists strike, conspiracy charges in connection with fatal crashes, and expenses linked to a slew of excessive job cuts (can’t forget stranding astronauts in space). Analysts had anticipated a slightly higher negative adjusted free cash flow of US$4.17 billion, according to Bloomberg estimates.
The announcement follows a warning from Boeing last week that it would post a larger-than-expected loss of around US$4 billion for the most recent quarter. The company posted a basic loss of US$5.46 per share, matching a preliminary figure that equated to about US$3.86 billion. Analysts had expected a per-share loss of US$1.84, according to LSEG data cited by Reuters.
“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,” Kelly Ortberg, Boeing’s president and chief executive officer (who has only been in the role since July) said in a news release.
Boeing has faced increased scrutiny over its safety record and the impact of the COVID-19 pandemic in recent years. 2024 began with a dangerous mid-air panel blowout on one of its 737 MAX planes. This incident, coupled with a now-resolved work stoppage by more than 33,000 workers, weighed heavily on the firm last year.
Overall net losses for 2024 amounted to US$11.83 billion, deepening from a loss of US$2.24 billion in the prior year. In Q4, Boeing’s Commercial Airplanes division was hit by lower deliveries and a pre-tax earnings charge of US$1.1 billion on its 777X and 767 programs. Quarterly revenue at the unit slumped by 55 per cent year-over-year to US$4.76 billion.
Boeing’s Defense, Space, and Security segment logged a US$1.7 billion pre-tax charge stemming from its fixed-price development initiatives. Its KC-46 tanker program, which uses the 767 airframe, booked an US$800 million charge partly due to the strike. Q4 revenues fell by 31 per cent from a year ago to US$15.24 billion, while the full-year top-line figure slipped by 14 per cent to US$66.52 billion.
Boeing develops, manufactures and services commercial airplanes, defence products and space systems for customers in more than 150 countries.
Boeing stock (NYSE:BA) last traded at US$175.16 and has descended 12.61 per cent since this time last year.
Join the discussion: Find out what everybody’s saying about this aerospace stock’s new CEO on the Boeing Co. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo: Boeing)
