Boeing (NYSE:BA) has announced a fourth-quarter net loss of $3.8 billion, or $5.46 per share, marking its second-largest annual loss on record. The company’s revenue for the quarter was $15.2 billion, a 31% decrease from the same period last year.
A significant factor contributing to this loss was a two-month machinists’ strike that disrupted production and delivery schedules, leading to a $3.5 billion cash burn in the quarter. The strike affected the assembly of key models, including the 737, 767, and 777/777X. Boeing delivered 57 airplanes during the quarter, a sharp decline from 157 deliveries in the same period the previous year.
In addition to the strike, Boeing (NYSE:BA) faced nearly $3 billion in charges due to labor strikes, job cuts, and issues with government programs. These challenges contributed to an annual loss of $11.8 billion for 2024.
CEO’s Response and Future Outlook
CEO Kelly Ortberg emphasized steps to recover jet production and stabilize the business. Production for the 737, 767, and 777/777X models has resumed, and deliveries of the 737 Max are expected to increase. Boeing projects turning cash flow positive in the second half of 2025.
Despite the challenges, Boeing’s (NYSE:BA) total company backlog grew to $521 billion, including over 5,500 commercial airplanes. The company booked 204 net orders in the quarter, including 100 737-10 airplanes for Pegasus Airlines and 30 787-9 airplanes for flydubai.
Analyst Perspectives
Analysts note that while Boeing’s financial results are concerning, the company’s efforts to stabilize production and address labor issues are steps in the right direction. The focus on increasing deliveries and managing cash flow will be critical as Boeing aims to recover in the coming years.
Boeing’s (NYSE:BA) fourth-quarter results highlight significant challenges, including labor strikes and production halts, which have severely impacted its financial performance. The company’s leadership is taking measures to address these issues, with a focus on stabilizing operations and returning to positive cash flow in the latter half of 2025.
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