Boeing Reports First Quarter 2023 Net Loss of $425 Million or $0.69 per Share
Boeing has reported a first quarter net loss of $425 million or ($0.69) per share on a year-over-year increase in revenue of 28 percent to $17.92 billion. The company ended the quarter with a backlog valued at $411 billion, including over 4,500 commercial airplanes.
On Wednesday (April 26, 2023), Boeing reported their financial results for the first quarter ending March 31, 2023. The company reported a first quarter net loss of $425 million or ($0.69) per share on a year-over-year increase in revenue of 28 percent to $17.92 billion. Boeing ended the quarter with cash and marketable securities totaling $14.8 billion and access to undrawn credit facilities of $12.0 billion. The company’s net debt at March 31, 2023 was $55.4 billion, down from $57.0 billion at the beginning of the first quarter. At March 31, 2023 Boeing had an order backlog valued at $411 billion, including 4,500 commercial airplanes.
In Wednesday’s announcement, Boeing’s President and Chief Executive Officer, Dave Calhoun, said,
“We delivered a solid first quarter and are focused on driving stability for our customers. We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term. Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future.”
Boeing Commercial Airplanes’ first quarter revenue increased year-over-year by 60 percent to $6.7 billion, primarily driven by increased 737 and 787 deliveries, partially offset by 787 customer considerations. Earlier this month, Boeing’s 737 fuselage supplier notified the company that a non-standard manufacturing process was used on two aft fuselage section fittings, impacting certain airplanes. Although this is not an immediate safety of flight issue, 737 production will be impacted. However, Boeing still expects to deliver between 400-450 737 Family airplanes during 2023. The company expects final assembly production to recover in the coming months to 38 per month later this year, increasing to 50 per month in the 2025-26 timeframe.
The Boeing 787 program is currently producing three airplanes monthly and the company plans on ramping up production to five per month by late 2023 and 10 per month by 2025/26. During Q1 Boeing Commercial Airplanes secured 107 net orders. Additionally, the company secured commitments from Air India for 190 737 MAX, 20 787s and 10 777X airplanes. Riyadh Air and Saudi Arabian Airlines (SAUDIA) also made a commitment for up to 121 Boeing 787 Dreamliners. Commercial Airplanes delivered 130 airplanes during the first quarter.
Boeing (NYSE: BA) is the world’s largest aerospace company and leading supplier of commercial airplanes, defense, space and security systems, as well as global services. The aerospace giant tops the list of the largest U.S. exporters, providing a significant positive impact to America’s annual GDP. Boeing supports government and commercial customers in over 150 countries and employs more than 160,000 team members worldwide. As Boeing continues to deliver for customers, they are committed to their legacy of aerospace leadership in technology and innovation and living the company’s core values of safety, quality and integrity.
In trading Wednesday morning (April 26, 2023), shares in The Boeing Company (NYSE: BA) were up 2.97% to $208.21/share (10:33 AM EDT).