Boeing: Massive Losses, Labor Strikes, and $511 Billion in Backlog
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Boeing's (NYSE:BA) latest results paint a tough picture, with $17.8 billion in revenue but a staggering $6.2 billion loss, hammered by labor strikes and ongoing cost hits from troubled programs. The International Association of Machinists and Aerospace Workers' work stoppage left a noticeable dent, worsening losses across both commercial and defense divisions. Despite the cash burn pushing free cash flow down to negative $2 billion, Boeing's total backlog still holds firm at $511 billion, signaling resilient demand in the face of operational setbacks.
The commercial segment took a big hit, posting a $4 billion loss driven by delayed widebody deliveries and hefty charges on key projects like the 777X. Defense revenue edged up to $5.5 billion, but rising costs on major contracts dragged margins deeper into the red. Meanwhile, Global Services stood out as a bright spot, delivering $4.9 billion in revenue and a solid 17% margin, thanks to a surge in commercial activity.
Looking ahead, Boeing isn't standing still. The company shored up liquidity with a new $10 billion short-term credit line, boosting its credit access to $20 billion. CEO Kelly Ortberg is doubling down on reshaping the company's culture and stabilizing operations, aiming to get Boeing back on track. It's a clear signal of a strategic pivotfocusing on tackling current challenges head-on while laying down the foundation for long-term growth.
This article first appeared on GuruFocus.