Boeing Drops 9% After Commercial Airplanes Losses Despite Record Backlog
Boeing reported revenue of $24.19 billion and a net loss of $116 million in the third quarter, with its stock dropping about 9% despite its backlog reaching $745 billion.
Boeing recorded revenue of $24.19 billion in the third quarter, with a net loss of $116 million, and an adjusted loss per share of $0.34 compared to the expected $0.20, as reported by 24/7 Wall St.
The commercial airplanes segment reported an operating loss of $697 million with a negative margin of 6.5%, overshadowing the cash flow improvement. The company's stock fell about 9% in morning trading, even though quarterly revenue rose 4% year-over-year to $24.2 billion.
Total backlog reached a record high of $745 billion. The Defense, Space & Security segment posted revenue of $7.9 billion, up 15%, with operating profit of $492 million. Operating cash flow stood at $1.5 billion, and free cash flow reached $0.5 billion.
The report notes that the 737 program targets a stable production rate of 47 aircraft per month, and the first delivery of the 777X is targeted for 2027 under a bullish scenario. The 737-7 and 737-10 aircraft received the necessary certifications. The net loss narrowed from $5.3 billion a year ago to $116 million.
What Do These Terms Mean?
Adjusted Earnings Per Share: A profitability metric that excludes extraordinary items from net income, used to compare company performance across periods.
Backlog: The value of confirmed orders that have not yet been delivered, providing an indicator of future business volume.
Free Cash Flow: The cash remaining after operating and capital expenditures, used for dividend distributions or debt repayment.
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