Boeing Co FY2024 Net Loss Narrows to $11.83B, Revenue Declines 14.4%

Executive Summary

In FY2024, Boeing reported a net loss of $11.83 billion, representing a 427% improvement compared to the prior year’s loss of $2.24 billion. Revenue decreased from $77.79 billion in FY2023 to $66.52 billion, a decline of approximately 14.4%. Key drivers include reduced commercial aircraft sales, ongoing production and program losses, and macroeconomic pressures. The company’s liquidity remains solid with cash and cash equivalents totaling $13.80 billion, despite increased debt levels reaching $53.86 billion. Overall, Boeing demonstrates operational challenges but shows signs of financial stabilization amid a complex market environment.

Key Metrics

Management Discussion and Analysis (MD&A)

Boeing’s FY2024 results reflect significant operational headwinds, including extensive program losses, supply chain disruptions, and production rate adjustments, primarily impacting the Commercial Airplanes segment. Despite a substantial reduction in net loss, the company faced challenges in restoring profitability amid macroeconomic uncertainties and geopolitical tensions. Liquidity remains healthy, with a strategic focus on deleveraging and restructuring key programs. The company continues to emphasize technological innovation and supply chain resilience to capitalize on long-term aerospace growth opportunities.

Income Statement Analysis

Revenue declined by 14.4% from $77.79 billion in FY2023 to $66.52 billion in FY2024, primarily due to lower aircraft delivery volumes and program delays. Gross profit turned negative at $1.99 billion, a sharp deterioration from the prior year’s $7.72 billion, driven by program losses and abnormal production costs. Operating loss expanded to $10.71 billion from a loss of $0.773 billion, reflecting ongoing program impairments and restructuring expenses. Net loss improved from $2.24 billion to $11.83 billion, mainly due to lower revenue and higher program-related charges. Earnings per share remained negative at -$18.36 on both basic and diluted basis, compared to -$3.67 in FY2023, indicating persistent profitability challenges but improved operational cash flow.

Balance Sheet Analysis

Total assets increased by 14.2% to $156.36 billion, with notable growth in inventories and property, plant, and equipment. Cash and cash equivalents grew 8.4% to $13.80 billion, supporting liquidity needs. Total debt rose marginally by 3%, reaching $53.86 billion, reflecting new issuance and borrowing to fund program investments and liquidity buffers. Shareholders’ equity shifted to a deficit of approximately -$3.91 billion, mainly due to accumulated losses and treasury stock repurchases. The company’s leverage ratios indicate a cautious approach to debt management amid challenging market conditions.

Cash Flow Analysis

Operating cash flow was negative at $12.08 billion, largely due to working capital adjustments, program impairments, and restructuring costs. Capital expenditures increased to $2.23 billion, supporting new aircraft development and manufacturing capacity. The company issued $10 billion in senior notes to bolster liquidity, with proceeds primarily used to repay existing debt and fund program ramp-ups. Financing activities resulted in net inflows of $25.21 billion, mainly from debt issuance and stock offerings, offsetting cash used in operations. Dividends and share repurchases were modest, reflecting strategic capital allocation priorities.

Ratios & DuPont Analysis

Net profit margin remains deeply negative at -17.8%, highlighting profitability pressures. Return on assets (ROA) is approximately -7.6%, driven by net losses relative to total assets. Return on equity (ROE) is also negative at -95.8%, impacted by accumulated deficits. Asset turnover ratio stands at 0.425, indicating moderate efficiency in asset utilization. The equity multiplier is approximately 40.0, reflecting high leverage. Overall, the DuPont analysis underscores the need for operational turnaround and improved margin management.

Risk Factors

Key risks include regulatory hurdles and safety investigations related to the 737 MAX, geopolitical tensions affecting supply chains and international sales, intense market competition from Airbus and emerging players, operational challenges in ramping new aircraft programs, financial risks from high leverage, and macroeconomic factors such as inflation and global economic slowdown. The company’s ability to manage these risks will be crucial for long-term stability and growth.

Notes & Additional Commentary

FY2024 was characterized by extensive program impairments, notably on the KC-46A Tanker, T-7A Red Hawk, and Commercial Crew, leading to significant reach-forward losses. Unusual items include program delays, supply chain disruptions, and restructuring costs. The company also undertook substantial stock buybacks and issued new debt to strengthen liquidity. The impact of ongoing investigations and regulatory scrutiny remains a concern, with potential liabilities and reputational effects. The company is actively restructuring its portfolio to focus on core competencies and long-term aerospace market leadership.

Investment Implications

While Boeing faces near-term earnings pressures and operational headwinds, its strong liquidity position and ongoing restructuring efforts suggest a cautiously optimistic long-term outlook. Investors should monitor program recovery, regulatory developments, and market share dynamics. Risk management remains vital given geopolitical and macroeconomic uncertainties. Strategic investments in technology and supply chain resilience could position Boeing for future growth once current challenges are addressed.