Boeing Reports First Quarter Results
Rhea-AI Summary
Boeing [NYSE: BA] reported Q1 2025 financial results with revenue increasing 18% to $19.5 billion, primarily driven by 130 commercial deliveries. The company posted a GAAP loss per share of ($0.16) and core loss per share of ($0.49).
Operating cash flow was ($1.6) billion with free cash flow of ($2.3) billion. Total company backlog grew to $545 billion, including over 5,600 commercial airplanes. The 737 production is expected to reach 38 per month this year, while the 787 program aims to increase to seven per month.
Commercial Airplanes revenue reached $8.1 billion with an operating margin of (6.6)%, booking 221 net orders. Defense, Space & Security revenue was $6.3 billion with a 2.5% operating margin, while Global Services generated $5.1 billion with an 18.6% operating margin.
Positive
- Revenue increased 18% YoY to $19.5B
- Commercial deliveries up 57% to 130 aircraft
- Secured 221 new commercial aircraft orders
- Total backlog grew to $545B
- Global Services achieved strong 18.6% operating margin
Negative
- GAAP loss per share of ($0.16)
- Negative operating cash flow of ($1.6B)
- Commercial Airplanes segment operating margin of (6.6)%
- Defense revenue declined 9% YoY
- High debt level of $53.6B
News Market Reaction 1 Alert
On the day this news was published, BA gained 6.06%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
ARLINGTON, Va., April 23, 2025 /PRNewswire/ --
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 - GAAP loss per share of (
$0.16 $0.49 - Operating cash flow of
( and free cash flow of$1.6) billion ( (non-GAAP)*$2.3) billion - Total company backlog grew to
$545 billion
Table 1. Summary Financial Results | First Quarter | |||||||||||||||||||||
(Dollars in Millions, except per share data) | 2025 | 2024 | Change | |||||||||||||||||||
Revenues | 18 % | |||||||||||||||||||||
GAAP | ||||||||||||||||||||||
Earnings/(loss) from operations | ( | NM | ||||||||||||||||||||
Operating margins | 2.4 | % | (0.5) | % | NM | |||||||||||||||||
Net loss | ( | ( | NM | |||||||||||||||||||
Basic loss per share | ( | ( | NM | |||||||||||||||||||
Operating cash flow | ( | ( | NM | |||||||||||||||||||
Non-GAAP* | ||||||||||||||||||||||
Core operating earnings/(loss) | ( | NM | ||||||||||||||||||||
Core operating margins | 1.0 | % | (2.3) | % | NM | |||||||||||||||||
Core loss per share | ( | ( | 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
"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 | ( | ( | ||||||||||||||||||||||
Less additions to property, plant & equipment | ( | ( | ||||||||||||||||||||||
Free cash flow* | ( | ( | ||||||||||||||||||||||
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures." |
Operating cash flow was
Table 3. Cash, Marketable Securities and Debt Balances | Quarter End | |||||||||||||||||||||||||||||||||
(Billions) | 1Q 2025 | 4Q 2024 | ||||||||||||||||||||||||||||||||
Cash and investments in marketable securities1 | ||||||||||||||||||||||||||||||||||
Consolidated debt | ||||||||||||||||||||||||||||||||||
1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments." |
Cash and investments in marketable securities totaled
Total company backlog at quarter end was
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes | First Quarter | |||||||||||||||||||||
(Dollars in Millions) | 2025 | 2024 | Change | |||||||||||||||||||
Deliveries | 130 | 83 | 57 % | |||||||||||||||||||
Revenues | 75 % | |||||||||||||||||||||
Loss from operations | ( | ( | NM | |||||||||||||||||||
Operating margins | (6.6) | % | (24.6) | % | NM | |||||||||||||||||
Commercial Airplanes first quarter revenue of
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
Defense, Space & Security
Table 5. Defense, Space & Security | First Quarter | |||||||||||||||||||||
(Dollars in Millions) | 2025 | 2024 | Change | |||||||||||||||||||
Revenues | (9) % | |||||||||||||||||||||
Earnings from operations | 3 % | |||||||||||||||||||||
Operating margins | 2.5 | % | 2.2 | % | 0.3 pts | |||||||||||||||||
Defense, Space & Security first quarter revenue was
During the quarter, Defense, Space & Security was selected by the
Global Services
Table 6. Global Services | First Quarter | |||||||||||||||||||||
(Dollars in Millions) | 2025 | 2024 | Change | |||||||||||||||||||
Revenues | — % | |||||||||||||||||||||
Earnings from operations | 3 % | |||||||||||||||||||||
Operating margins | 18.6 | % | 18.2 | % | 0.4 pts | |||||||||||||||||
Global Services first quarter revenue was
In the quarter, Global Services delivered the 100th 767-300 Boeing Converted Freighter to SF Airlines and received a modification contract from the
Additional Financial Information
Table 7. Additional Financial Information | First Quarter | |||||||||||||||
(Dollars in Millions) | 2025 | 2024 | ||||||||||||||
Revenues | ||||||||||||||||
Unallocated items, eliminations and other | ( | ( | ||||||||||||||
Loss from operations | ||||||||||||||||
Unallocated items, eliminations and other | ( | ( | ||||||||||||||
FAS/CAS service cost adjustment | ||||||||||||||||
Other income, net | ||||||||||||||||
Interest and debt expense | ( | ( | ||||||||||||||
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
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
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
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 | |||||||||||
(Dollars in millions, except per share data) | 2025 | 2024 | |||||||||
Sales of products | |||||||||||
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 | ( | ( | |||||||||
Less: Mandatory convertible preferred stock dividends accumulated during the period | 86 | ||||||||||
Net loss attributable to Boeing common shareholders | ( | ( | |||||||||
Basic loss per share | ( | ( | |||||||||
Diluted loss per share | ( | ( | |||||||||
The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited) | |||||||||||
(Dollars in millions, except per share data) | March 31 | December 31 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | |||||||||||
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 | 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 | 5,932 | 5,414 | |||||||||
Total assets | |||||||||||
Liabilities and equity | |||||||||||
Accounts payable | |||||||||||
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, liquidation preference | 6 | 6 | |||||||||
Common stock, par value | 5,061 | 5,061 | |||||||||
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 | |||||||||||
The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows | |||||||||||
Three months ended | |||||||||||
(Dollars in millions) | 2025 | 2024 | |||||||||
Cash flows – operating activities: | |||||||||||
Net loss | ( | ( | |||||||||
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 | |||||||||||
The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited) | |||||||||||
Three months ended March 31 | |||||||||||
(Dollars in millions) | 2025 | 2024 | |||||||||
Revenues: | |||||||||||
Commercial Airplanes | |||||||||||
Defense, Space & Security | 6,298 | 6,950 | |||||||||
Global Services | 5,063 | 5,045 | |||||||||
Unallocated items, eliminations and other | (12) | (79) | |||||||||
Total revenues | |||||||||||
Earnings/(loss) from operations: | |||||||||||
Commercial Airplanes | ( | ( | |||||||||
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 | ( | ( | |||||||||
Less: Mandatory convertible preferred stock dividends accumulated during the period | 86 | ||||||||||
Net loss attributable to Boeing common shareholders | ( | ( | |||||||||
Research and development expense, net: | |||||||||||
Commercial Airplanes | |||||||||||
Defense, Space & Security | 199 | 235 | |||||||||
Global Services | 29 | 26 | |||||||||
Other | 82 | 89 | |||||||||
Total research and development expense, net | |||||||||||
Unallocated items, eliminations and other: | |||||||||||
Share-based plans | ( | ||||||||||
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 | |||||||||||
Total | ( | ( | |||||||||
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 | ||||||||||||
Total1 | 26 | 14 | ||||||||||||
1 Deliveries of new-build production units, including remanufactures and modifications | ||||||||||||||
Total backlog (Dollars in millions) | March 31 | December 31 | ||||||||||||
Commercial Airplanes | ||||||||||||||
Defense, Space & Security | 61,567 | 64,023 | ||||||||||||
Global Services | 22,036 | 21,403 | ||||||||||||
Unallocated items, eliminations and other | 686 | 735 | ||||||||||||
Total backlog | ||||||||||||||
Contractual backlog | ||||||||||||||
Unobligated backlog | 20,772 | 22,534 | ||||||||||||
Total backlog | ||||||||||||||
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 | ||||||||||||||||||||||
(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) | ( | |||||||||||||||||||||
Core operating margins (non-GAAP) | 1.0 | % | (2.3) | % | ||||||||||||||||||
Diluted loss per share (GAAP) | ( | ( | ||||||||||||||||||||
Pension FAS/CAS service cost adjustment | ( | ( | ( | ( | ||||||||||||||||||
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 | ( | ( | ( | ( | ||||||||||||||||||
Core loss per share (non-GAAP) | ( | ( | ||||||||||||||||||||
Diluted weighted average common shares outstanding (in millions) | 753.4 | 612.9 | ||||||||||||||||||||
1 The income tax impact is calculated using the |
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SOURCE Boeing
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