Boeing Reports Significant Q4 Loss Amid Ongoing Operational Challenges and Strategic Realignment

Boeing Co. (BA.US) released its Q4 2024 earnings report today, revealing substantial losses and operational challenges as the company continues its efforts to rebuild and restructure under CEO Kelly Ortberg's leadership. The results reflect the impact of manufacturing issues, labor disputes, and defense program setbacks, while highlighting the company's focus on fundamental reorganization and quality control improvements. There is little impact on premarket price action as earnings were pre-announced last week.

Boeing Q4 2024 results:

• Revenue: $15.24 billion vs $16.45 billion expected

• Core loss per share: $5.90 vs $3.07 expected

• Adjusted free cash flow: -$4.10 billion vs -$4.17 billion expected

• Operating cash flow: -$3.45 billion

• Total backlog: $521.34 billion

Segment Performance:

• Commercial Airplanes revenue: $4.76 billion

• Defense, Space & Security revenue: $5.41 billion (-20% YoY) vs $6.29 billion expected

• Global Services revenue: $5.12 billion (+5.6% YoY) vs $5.08 billion expected

• Defense, Space & Security operating loss: $2.27 billion vs $697.4 million loss expected

• Global Services operating earnings: $998 million

Strategic Updates:

• 737 program resumed production with plans for gradual rate increase

• 787 program achieved five per month production rate

• 777-9 first delivery still anticipated in 2026

• No financial targets provided for 2025

• Announced 17,000 job cuts

• Raised over $24 billion in equity

• Ended year with $26.3 billion in cash and short-term securities

• Pre-paid $3.5 billion of debt due in May

CEO Commentary: 

Kelly Ortberg emphasized the company's progress in restructuring, noting that Boeing is "preparing for the path ahead by continuing to make investments in our core businesses while streamlining our portfolio." He acknowledged that fixing cultural dysfunction will be "a multi-year journey" and highlighted efforts to reduce bureaucracy and improve decision-making agility.

Portfolio Review:

• Potential sale of Jeppesen navigation unit, estimated value $6-8 billion

• Focus on core business investments and portfolio streamlining

• Implementation of enhanced quality control measures

• Operational restructuring to support higher production levels

• Addressing money-losing defense programs

Boeing BA.US (D1 Interval)

The stock is trading above the 23.6% Fibonacci retracement level and the 30-day SMA. Bulls will aim for a retest of December’s highs, while bears will look to break below $171.7, targeting the 38.2% Fibonacci retracement level, which coincides with the 50-day SMA. The RSI is nearing the point of forming bearish divergence in the neutral zone. Meanwhile, the MACD has experienced a bearish crossover but remains tight. Source: xStation