Boeing Reports $11.83 Billion Loss as CEO Ortberg Tackles Production and Safety Challenges - Today Financials

Boeing Reports $11.83 Billion Loss as CEO Ortberg Tackles Production and Safety Challenge

Boeing (BA) reported an annual loss of $11.83 billion on Tuesday, its largest since 2020, amid challenges in its commercial and defense units, and the impact of a West Coast workers' strike. CEO Kelly Ortberg is facing difficulties in turning the company around as Boeing falls behind rival Airbus and deals with regulatory scrutiny following missteps.

Boeing’s shares rose 0.5% in pre-market trading. The company had a quarterly cash burn of $4.1 billion, slightly better than the expected $4.26 billion. Ortberg emphasized progress on stabilizing production lines after safety concerns arose from a midair incident last year. For Q4, Boeing reported a $3.86 billion loss due to charges in defense programs. Revenue fell 31% to $15.24 billion, below analysts' expectations of $16.21 billion. Adjusted loss per share was $5.90, worse than the expected $3 loss.

In 2024, Boeing's cash burn totaled $14.3 billion, compared to a cash flow of $4.43 billion in 2023. Ortberg outlined a four-part plan to turn the company around, including cultural changes. Boeing has faced over $30 billion in losses since 2019, following 737 MAX crashes and the pandemic.The company’s defense business lost $5.41 billion in 2024 due to overruns in fixed-price programs. Despite delays, Boeing has ramped up production of 787 jets and is focused on resolving issues with its 777X and 737-7 and -10 models. Ortberg assured progress in core businesses while streamlining areas not central to Boeing’s future.