Boeing(US:BA)2025-10-29 16:56Financial Performance - Revenues for the nine months ended September 30, 2025, increased by $14,240 million, or 27.8%, compared to the same period in 2024, driven primarily by higher revenues in Commercial Airplanes and Defense, Space & Security [156]. - Total revenues for the nine months ended September 30, 2025, were $65.5 billion, compared to $51.3 billion for the same period in 2024, representing a year-over-year increase of 27.7% [246]. - Loss from operations for the nine months ended September 30, 2025, decreased by $2,441 million, or 35.2%, compared to the same period in 2024, primarily due to improvements in Defense, Space & Security [158]. - Loss from operations for the nine months ended September 30, 2025, was $4.5 billion, an improvement from a loss of $6.9 billion in the same period in 2024 [246]. - Core operating loss for the nine months ended September 30, 2025, improved by $2,486 million, or 32.0%, compared to the same period in 2024, reflecting favorable changes in segment operating loss [160]. - Core operating loss (non-GAAP) for the nine months ended September 30, 2025, was $5.3 billion, compared to a loss of $7.8 billion for the same period in 2024, indicating a reduction of 31.9% [246]. - Net loss attributable to Boeing shareholders for the nine months ended September 30, 2025, was $5,985 million, a decrease of $1,967 million, or 24.7%, compared to the same period in 2024 [155]. Revenue Breakdown - Commercial Airplanes revenues for the nine months ended September 30, 2025, increased by $12,016 million, or 66.4%, primarily due to higher deliveries [156]. - Defense, Space & Security revenues for the nine months ended September 30, 2025, increased by $1,310 million, or 7.1%, primarily due to lower net unfavorable cumulative contract catch-up adjustments [156]. - BCA revenues for the nine months ended September 30, 2025, were $30,115 million, up from $18,099 million in the same period in 2024, representing a $12,016 million increase [184][185]. - BDS revenues for the nine months ended September 30, 2025, increased by $1,310 million to $19,817 million, with operating margins improving to 1.9% from a loss of 17.0% in the same period of 2024 [208][210]. - Global Services revenues for the nine months ended September 30, 2025, rose by $879 million to $15,714 million, with operating margins at 18.6% [220][221]. Operational Metrics - Operating margins for the nine months ended September 30, 2025, improved to (6.9)%, compared to (13.5)% for the same period in 2024, reflecting operational improvements [155]. - Commercial airplane deliveries increased to 440 units during the first nine months of 2025, compared to 291 units in the same period in 2024, marking a significant increase in production [185]. - Loss from operations for BCA was $6,447 million for the nine months ended September 30, 2025, compared to a loss of $5,879 million in the same period in 2024, reflecting higher reach-forward losses on the 777X program [184][186]. Backlog and Orders - Total backlog increased from $521,336 million as of December 31, 2024, to $635,688 million at September 30, 2025, reflecting a $99,749 million increase in contractual backlog primarily due to a $99,438 million increase in BCA backlog [172][189]. - Unobligated backlog increased by $14,603 million during the nine months ended September 30, 2025, primarily due to an increase in BDS backlog [173]. - Aircraft order cancellations during the nine months ended September 30, 2025, totaled $3,037 million, primarily related to 737 aircraft [189]. Costs and Expenses - Cost of sales for the nine months ended September 30, 2025, increased by $11,361 million, or 22%, compared to the same period in 2024, primarily due to higher revenues and increased reach-forward losses at Commercial Airplanes [168]. - Research and development expenses for the nine months ended September 30, 2025, decreased by $325 million, or 10.9%, compared to the same period in 2024, mainly due to lower spending at Commercial Airplanes and Defense, Space & Security [171]. - Capital expenditures for the nine months ended September 30, 2025, were $2.0 billion, up from $1.6 billion in the same period in 2024, reflecting a 25% increase [230]. Cash Flow and Debt - Net cash used by operating activities was $266 million for the nine months ended September 30, 2025, a significant improvement from $8,630 million in the same period in 2024 [226]. - Net cash used by investing activities during the nine months ended September 30, 2025, was $5.9 billion, compared to net cash provided of $0.7 billion in 2024 [230]. - As of September 30, 2025, total debt was $53.4 billion, down from $53.9 billion at December 31, 2024 [232]. - The company had $6.2 billion in cash and $16.8 billion in short-term investments as of September 30, 2025 [233]. Market and Regulatory Environment - The U.S. government funding has lapsed as of October 1, 2025, which could result in payment delays and impact operations [175]. - The global trade landscape remains volatile, with new tariffs affecting imports and potential retaliatory actions from other countries [176][180]. - The U.S. government's FY26 budget request includes $848 billion for the Department of Defense and $19 billion for NASA, with potential impacts on future contracts and programs [205][206]. Production and Program Updates - The 737 program is targeting a production rate increase to 42 units per month, contingent on compliance with FAA safety and quality standards [194]. - Reach-forward losses of $241 million were recorded during the nine months ended September 30, 2025, for the 767 program, driven by higher production costs [197]. - The accounting quantity for the 777 program increased by six units, with cumulative firm orders for the 777X rising from 358 units to 473 units, and the accounting quantity for the 777X program increased to 600 units [199]. - The first delivery of the 777-9 is now expected in 2027 due to delays in FAA certification flight testing, resulting in an incremental reach-forward loss of $4,899 million in Q3 2025 [200]. Labor Relations - Approximately 3,200 IAM 837 employees have been on strike since August 4, 2025, impacting several programs including F/A-18 and F-15 [219]. Credit Ratings - The company maintains investment grade credit ratings, with Fitch affirming a BBB- rating and revising the outlook to stable from negative in June 2025 [235].