Boeing has announced that it expects a $4 billion loss in the fourth quarter of 2024, due to a challenging year marked by a seven-week labor strike by US Coast factory workers and extra charges within the defense segment. 

In a statement released on January 23, 2025, Boeing announced that it will recognize impacts to its financial results “related to the IAM work stoppage, charges for certain Defense, Space & Security programs and costs associated with workforce reductions” when it reports its final fourth quarter results on January 28, 2025. 

The company expects fourth quarter revenue of $15.2 billion, a GAAP loss per share of $5.46, and operating cash flow of $3.5 billion. At the end of the quarter, cash and investments in marketable securities reached $26.3 billion.  

The total losses could reach around $4 billion when adding the pre-tax charges of $2.8 billion from the Commercial Airplanes and Defense divisions. 

According to Boeing, Commercial Airplanes results will show the effects of the International Association of Machinists and Aerospace Workers (IAM) strike, leading to “lower deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs”. 

The 777X program will be landed with a pre-tax charge of $900 million due to increased labor costs from finalizing the IAM agreement, to be spread over the next few years. The company still expects to deliver the first 777-9 in 2026. For the fourth quarter, Commercial Airplanes anticipates revenue of $4.8 billion and an operating margin of negative 43.9%. 

Leave a Reply

Your email address will not be published. Required fields are marked *