Boeing(US:BA)2025-04-23 16:21Revenue and Earnings - Revenues for Q1 2025 increased by $2,927 million to $19,496 million compared to $16,569 million in Q1 2024, driven by higher revenues in Commercial Airplanes and Global Services [151]. - Earnings from operations for Q1 2025 were $461 million, a significant improvement from a loss of $86 million in Q1 2024 [155]. - Core operating earnings for Q1 2025 increased by $587 million compared to Q1 2024, reaching $199 million from a loss of $388 million [157]. - Net loss attributable to Boeing shareholders for Q1 2025 was $37 million, an improvement from a loss of $343 million in Q1 2024 [161]. Segment Performance - Commercial Airplanes segment revenues rose by $3,494 million primarily due to higher deliveries and the absence of 737-9 customer considerations [151]. - Boeing Commercial Airplanes (BCA) revenues increased by $3,494 million to $8,147 million for the three months ended March 31, 2025, compared to $4,653 million in the same period in 2024, primarily due to higher deliveries [178]. - BCA delivered 130 commercial airplanes in the first three months of 2025, up from 83 deliveries in the same period in 2024, with 737 deliveries increasing from 67 to 105 [179]. - BCA reported a loss from operations of $537 million for the three months ended March 31, 2025, an improvement from a loss of $1,143 million in the same period in 2024 [180]. - The Defense, Space & Security (BDS) segment reported revenues of $6,298 million for the three months ended March 31, 2025, a decrease of $652 million compared to $6,950 million in the same period in 2024 [203]. - BDS earnings from operations increased to $155 million for the three months ended March 31, 2025, compared to $151 million in the same period in 2024, primarily due to lower net unfavorable cumulative catch-up adjustments [204]. - BDS earnings from operations decreased to $6 million for the three months ended March 31, 2025, down from $75 million in the same period of 2024 [205]. Backlog and Orders - Total backlog as of March 31, 2025, was $544,736 million, up from $521,336 million at the end of 2024, primarily due to increases in Commercial Airplanes and Global Services backlog [167]. - Total backlog for BCA increased from $435,175 million as of December 31, 2024, to $460,447 million at March 31, 2025, despite $2,312 million in aircraft order cancellations [182]. - BDS backlog was $61,567 million as of March 31, 2025, a decrease from $64,023 million at December 31, 2024 [206]. - BGS total backlog rose to $22,036 million at March 31, 2025, up from $21,403 million at December 31, 2024 [212]. Costs and Expenses - Cost of sales for Q1 2025 increased by $2,386 million to $17,079 million, representing a 16% increase compared to Q1 2024 [165]. - Research and development expenses for Q1 2025 totaled $844 million, slightly down from $868 million in Q1 2024 [166]. Cash Flow and Debt - Net cash used by operating activities was $1.6 billion for the three months ended March 31, 2025, a significant improvement from $3.4 billion in the same period of 2024 [213]. - Net cash used by investing activities was $1.7 billion for the three months ended March 31, 2025, compared to net cash provided of $2.1 billion in 2024 [216]. - Total debt balance decreased to $53.6 billion as of March 31, 2025, down from $53.9 billion at December 31, 2024 [217]. - Cash and cash equivalents, including restricted, were $10.1 billion at March 31, 2025, compared to $6.9 billion at the end of the same period in 2024 [219]. Future Outlook - The company anticipates that revenues will continue to be significantly impacted until deliveries ramp up and the global supply chain stabilizes [152]. - Boeing is targeting a production rate of approximately 3 aircraft per month for the 767 program, with expectations to complete production by 2027 [191]. - The 777X program is expected to have first deliveries in 2026, with break-even gross margins reported as of March 31, 2025 [194][195]. - Boeing is currently producing approximately 5 aircraft per month for the 787 program, with 20 aircraft in inventory as of March 31, 2025 [196]. - The company expects capital expenditures in 2025 to be higher than in 2024, with capital expenditures recorded at $0.7 billion in Q1 2025 [216]. Tax and Market Risk - The effective income tax rate for Q1 2025 was 140.8%, significantly higher than 6.1% in Q1 2024 [150]. - There have been no significant changes to the company's market risk since December 31, 2024 [233]. Strategic Moves - Boeing entered into an agreement to acquire Spirit on June 30, 2024, as part of its strategy to enhance production capabilities [197].