The Boeing Company (BA) Bundle
A Brief History of The Boeing Company
Company Overview
The Boeing Company, a leading aerospace manufacturer, has faced significant challenges in recent years, particularly in the wake of the COVID-19 pandemic and ongoing supply chain disruptions. As of 2024, Boeing's total revenues for the nine months ended September 30 were reported at $51.3 billion, a decline from $55.8 billion in the same period of the previous year.
Financial Performance
For the nine months ending September 30, 2024, Boeing reported a net loss attributable to shareholders of $7.95 billion compared to a net loss of $2.2 billion for the same period in 2023. This resulted in a basic loss per share of ($12.91) compared to ($3.64) in the previous year.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Revenues | $51.3 billion | $55.8 billion |
| Net Loss | ($7.95 billion) | ($2.2 billion) |
| Basic Loss per Share | ($12.91) | ($3.64) |
Key Contracts and Programs
Boeing's defense segment has also seen significant losses. For the nine months ended September 30, 2024, losses incurred on major fixed-price development programs totaled $3.3 billion, which includes $1.28 billion for the T-7A Red Hawk, $1.18 billion for the KC-46A Tanker, and $375 million for the Commercial Crew program.
Backlog and Deliveries
The total backlog for Boeing as of September 30, 2024, was reported at $427.7 billion, down from $440.5 billion at the end of 2023. This reduction reflects cancellations and adjustments in accounting estimates due to ongoing production challenges.
| Program | Backlog (as of Sept 30, 2024) |
|---|---|
| Commercial Airplanes | $319.9 billion |
| Defense, Space & Security | $61.6 billion |
| Global Services | $46.2 billion |
Recent Developments
On June 30, 2024, Boeing announced an agreement to acquire Spirit AeroSystems in an all-stock transaction valued at approximately $4.7 billion. This acquisition is expected to enhance Boeing's supply chain capabilities and reduce dependency on external suppliers.
As of September 30, 2024, Boeing's total debt balance was reported at $57.7 billion, an increase from $52.3 billion at the end of 2023, indicating ongoing financial strain.
Operational Challenges
Boeing has faced substantial operational challenges, including a significant work stoppage initiated on September 13, 2024, by the International Association of Machinists (IAM) 751, which has paused production on key aircraft models. This has adversely affected deliveries and further strained the company's financial position.
A Who Owns The Boeing Company (BA)
Major Shareholders
As of 2024, The Boeing Company (BA) has several major shareholders, which include institutional investors and mutual funds. The following table outlines the largest shareholders based on the most recent data:
| Shareholder | Shares Owned (millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 70.1 | 11.4% |
| BlackRock, Inc. | 61.8 | 10.1% |
| State Street Corporation | 39.7 | 6.5% |
| Wellington Management Company, LLP | 28.4 | 4.6% |
| Fidelity Investments | 27.5 | 4.5% |
| Other Institutional Investors | 150.0 | 24.5% |
| Retail Investors | 110.0 | 18.0% |
Board of Directors
The Boeing Company is managed by a Board of Directors. As of 2024, the Board includes:
- David L. Calhoun (President and CEO)
- Lawrence W. Kellner (Chairman)
- Sheila C. Bair
- John B. Veihmeyer
- Ronald A. Williams
- Marillyn A. Hewson
Stock Performance and Market Capitalization
As of September 30, 2024, Boeing's stock is trading at approximately $184.80 per share. The company's market capitalization is around $112 billion. The stock has shown a significant decrease in value from its highs in previous years, primarily due to operational challenges and ongoing production issues.
Recent Financial Data
For the third quarter of 2024, Boeing reported:
- Total revenues: $17.84 billion
- Net loss attributable to Boeing Shareholders: $7.95 billion
- Basic loss per share: $12.91
- Diluted loss per share: $12.91
Ownership Structure
The ownership structure of Boeing is heavily influenced by institutional investors, with approximately 75% of shares held by institutional owners, while the remaining 25% is held by retail investors and company insiders.
Insider Ownership
As of 2024, insiders hold approximately 1.5% of Boeing's shares. Key executives and board members have vested interests through stock options and direct ownership.
Recent Developments
On June 30, 2024, Boeing announced an agreement to acquire Spirit AeroSystems in an all-stock transaction valued at approximately $4.7 billion, further impacting its ownership dynamics and shareholder structure.
Debt and Financial Obligations
As of September 30, 2024, Boeing's total debt stands at approximately $57.7 billion, up from $52.3 billion at the end of 2023. The company has been actively managing its debt levels while seeking to stabilize its financial position amidst ongoing operational challenges.
The Boeing Company (BA) Mission Statement
Current Mission Statement
The Boeing Company aims to lead the world in aerospace and defense, providing innovative solutions that enhance safety, efficiency, and sustainability. The company focuses on delivering superior products and services that meet the evolving needs of customers in commercial aviation, defense, space, and global services.
Financial Overview
As of September 30, 2024, Boeing reported significant financial metrics that reflect its operational challenges and strategic focus:
| Financial Metric | Value (in millions) |
|---|---|
| Total Revenues | $51,275 |
| Net Loss | $(7,968) |
| Loss from Operations | $(6,937) |
| Commercial Airplanes Revenues | $18,099 |
| Defense, Space & Security Revenues | $18,507 |
| Global Services Revenues | $14,835 |
| Total Backlog | $510,509 |
| Total Debt | $57,700 |
| Cash and Short-term Investments | $10,500 |
Operational Highlights
Boeing's operational performance has been influenced by various factors, including supply chain disruptions and labor issues. The following table summarizes key operational metrics:
| Operational Metric | Value |
|---|---|
| Commercial Airplane Deliveries (9 months 2024) | 291 |
| Defense, Space & Security Deliveries (9 months 2024) | 76 |
| Total Backlog (Commercial Airplanes) | $427,733 |
| Engineering and Manufacturing Development (EMD) Program Value | $4 billion |
| KC-46A Tanker Contract Value | $27 billion |
Research and Development Expenditure
Boeing's investment in research and development is critical for maintaining its competitive edge. The following table provides a breakdown of R&D expenses:
| Segment | R&D Expense (9 months 2024, in millions) |
|---|---|
| Commercial Airplanes | $1,852 |
| Defense, Space & Security | $728 |
| Global Services | $103 |
| Other | $293 |
| Total R&D Expense | $2,976 |
Market Position and Strategic Focus
Boeing's mission is aligned with its strategic initiatives to enhance customer value and operational excellence. The company is focusing on:
- Increasing efficiency in production processes.
- Enhancing safety and compliance across all operations.
- Expanding its global footprint in the aerospace and defense sectors.
- Investing in sustainable technologies to reduce environmental impact.
Outlook and Challenges
Looking ahead, Boeing faces several challenges that may impact its mission execution:
- Supply chain disruptions continue to affect production timelines.
- Labor stability is crucial for resuming full operational capacity.
- Market demand fluctuations due to geopolitical factors.
How The Boeing Company (BA) Works
Business Segments
The Boeing Company operates through three primary segments: Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). Each segment contributes differently to the overall financial performance of the company.
Commercial Airplanes (BCA)
BCA is responsible for designing, assembling, and selling commercial jetliners. In the nine months ended September 30, 2024, BCA reported revenues of $18,099 million, a decrease from $23,420 million in the same period of 2023. The loss from operations for BCA was $5,879 million for the nine months of 2024 compared to a loss of $1,676 million in 2023.
| Deliveries | 2024 | 2023 |
|---|---|---|
| 737 | 229 | 286 |
| 747 | (4) | (6) |
| 767 | 15 | 1 |
| 777 | (7) | 17 |
| 787 | 36 | 50 |
| Total | 291 | 371 |
Defense, Space & Security (BDS)
BDS encompasses military aircraft, space systems, and security solutions. Revenues for BDS in the nine months ended September 30, 2024, were $18,507 million, up from $18,187 million in 2023. However, the loss from operations was $3,146 million in 2024 compared to $1,663 million in the previous year.
| Loss from Operations | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| BDS | $3,146 million | $1,663 million |
Global Services (BGS)
BGS provides aftermarket services for commercial and military customers. In the nine months ended September 30, 2024, BGS revenues were $14,835 million, an increase from $14,278 million in 2023. The earnings from operations for BGS were $2,620 million in 2024, compared to $2,487 million in 2023.
| Global Services Performance | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Revenues | $14,835 million | $14,278 million |
| Earnings from Operations | $2,620 million | $2,487 million |
Financial Performance
As of September 30, 2024, Boeing reported a net loss attributable to shareholders of $7,952 million, compared to a loss of $2,199 million in 2023. The total revenues for the company for the nine months ended September 30, 2024, were $51,275 million, down from $55,776 million in the same period of 2023.
| Financial Summary | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Revenues | $51,275 million | $55,776 million |
| Net Loss | $7,952 million | $2,199 million |
Cash Flow and Liquidity
During the nine months ended September 30, 2024, Boeing reported net cash used by operating activities of $8,630 million, a significant decrease from net cash provided of $2,579 million in 2023. The company had cash and short-term investments totaling $10.5 billion at the end of September 2024.
| Cash Flow Summary | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash (Used)/Provided by Operating Activities | ($8,630 million) | $2,579 million |
| Cash and Short-term Investments | $10.5 billion | N/A |
Debt and Capital Structure
At September 30, 2024, Boeing's total debt balance was $57.7 billion, up from $52.3 billion at December 31, 2023. The company issued $10 billion of fixed-rate senior notes on May 1, 2024, to improve liquidity.
| Debt Summary | 2024 | 2023 |
|---|---|---|
| Total Debt | $57.7 billion | $52.3 billion |
| Fixed-rate Senior Notes Issued | $10 billion | N/A |
Operational Challenges
Ongoing operational challenges include supply chain disruptions and labor instability, which have significantly affected production rates and financial performance. As of September 30, 2024, the company faced a significant work stoppage due to labor disputes, impacting its ability to deliver aircraft and meet customer demands.
| Operational Metrics | 2024 | 2023 |
|---|---|---|
| Cash Used in Operations | $8.6 billion | N/A |
| Aircraft Deliveries | 291 | 371 |
How The Boeing Company (BA) Makes Money
Revenue Segments
The Boeing Company generates revenue through three primary segments:
- Commercial Airplanes (BCA)
- Defense, Space & Security (BDS)
- Global Services (BGS)
Commercial Airplanes (BCA)
For the nine months ended September 30, 2024, BCA reported revenues of $18,099 million, down from $23,420 million in the same period of 2023. The loss from operations for the segment was ($5,879 million) compared to ($1,676 million) in 2023.
Commercial airplane deliveries during the first nine months of 2024 included:
| Model | Deliveries 2024 | Deliveries 2023 |
|---|---|---|
| 737 | 229 | 286 |
| 747 | (4) | (6) |
| 767 | 15 | 1 |
| 777 | (7) | 17 |
| 787 | 11 | (6) |
| Total | 291 | 371 |
Defense, Space & Security (BDS)
BDS revenues for the nine months ended September 30, 2024, were $18,507 million, compared to $18,187 million in 2023. The loss from operations for this segment was ($3,146 million) versus ($1,663 million) the previous year.
Key revenue sources included:
- U.S. government contracts
- International sales
Global Services (BGS)
BGS generated revenues of $14,835 million for the nine months ended September 30, 2024, an increase from $14,278 million in 2023. Earnings from operations were $2,620 million, compared to $2,487 million in the prior year.
Revenue breakdown included:
| Revenue Source | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Commercial | 8,782 | 8,218 |
| Government | 5,764 | 5,793 |
| Total | 14,546 | 14,011 |
Financial Performance
Overall financial performance for Boeing as of September 30, 2024, includes:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenues (Millions) | $51,275 | $55,776 |
| Net Loss (Millions) | ($7,968) | ($2,212) |
| Loss per Share | ($12.91) | ($3.64) |
| Operating Cash Flow (Millions) | ($8,630) | $2,579 |
Backlog
The backlog as of September 30, 2024, was $510,509 million, down from $520,195 million at the end of 2023. The backlog consists of:
| Segment | Backlog (Millions) |
|---|---|
| Commercial Airplanes | 427,733 |
| Defense, Space & Security | 61,621 |
| Global Services | 20,449 |
| Unallocated Items | 706 |
Cost of Sales
Cost of sales for the nine months ended September 30, 2024, totaled $51,677 million, compared to $50,749 million in 2023.
Cost of sales for the three months ended September 30, 2024, was $21,347 million, an increase of $4,408 million from $16,939 million in the same quarter of 2023.
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, were $2,976 million, compared to $2,496 million in 2023. The breakdown is as follows:
| Segment | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Commercial Airplanes | 1,852 | 1,538 |
| Defense, Space & Security | 728 | 652 |
| Global Services | 103 | 84 |
| Other | 293 | 222 |
Conclusion
Boeing's financial performance as of 2024 reflects significant challenges across its commercial and defense segments, with notable losses and revenue declines driven by supply chain disruptions and production delays.
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Article updated on 8 Nov 2024
Resources:
- The Boeing Company (BA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Boeing Company (BA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Boeing Company (BA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.