The Boeing Company (NYSE:BA) reported an adjusted loss of $3.26 per share in the third quarter of 2023, missing the Zacks Consensus Estimate of a loss of $3.21. However, it’s worth noting that this loss was an improvement from the $6.18 per share loss reported in the same quarter of the previous year.
When including one-time items, Boeing reported a GAAP loss of $2.70 per share, which was narrower than the year-ago quarter’s loss of $5.49 per share.
In terms of revenues, Boeing generated $18.10 billion, slightly falling short of the Zacks Consensus Estimate of $18.25 billion by 0.8%. Nonetheless, this revenue figure marked a 13% increase from the $15.96 billion reported in the year-ago quarter. This growth was attributed to higher year-over-year revenues across all three of the company’s business units.
Boeing’s total backlog at the end of the third quarter stood at $469.18 billion, an increase from the $439.56 billion recorded at the end of the second quarter of 2023.
Breaking down the performance by segment:
- Commercial Airplane: Revenues in this segment increased by 25% year-over-year, reaching $7.88 billion, primarily due to higher 787 deliveries. However, the segment reported an operating loss of $678 million, wider than the $622 million operating loss in the same period of the previous year. Boeing delivered 105 commercial planes during the quarter, a decrease of 6.3% from the previous year. The backlog for this segment remained strong, with more than 5,100 airplanes valued at $392 billion.
- Boeing Defense, Space & Security (BDS): This segment recorded revenues of $5.48 billion, indicating a 3% year-over-year improvement. It reported an operating loss of $924 million, which was narrower than the $2,798 million operating loss reported in the year-ago quarter. BDS also noted a backlog of $58 billion, with 29% of it consisting of orders from international clients.
- Global Services: Revenues in this segment increased by 9% year-over-year, totaling $4.81 billion. The unit generated an operating income of $784 million, compared to $733 million in the prior-year quarter, driven by higher commercial volume and a favorable mix.
- Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $65 million, an improvement from the negative revenues of $86 million in the third quarter of 2022.
In terms of financial condition, Boeing’s cash and cash equivalents at the end of the third quarter of 2023 amounted to $6.81 billion, with short-term and other investments totaling $6.56 billion. Long-term debt stood at $47.38 billion, down from $51.81 billion at the end of 2022. The company’s operating cash flow as of September 30, 2023, was $2,579 million, a significant improvement from the $55 million reported at the end of the third quarter in 2022. Free cash flow for the third quarter of 2023 reached $1,483 million, compared to $841 million in the same period in 2022.
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