Boeing Reports First Quarter Results
ARLINGTON,
Va.,
First Quarter 2025
-- 737 production gradually increased in the quarter; still expected to
reach 38 per month this year
-- Revenue increased to $19.5 billion primarily reflecting 130 commercial
deliveries
-- GAAP loss per share of ($0.16 ) and core (non-GAAP)* loss per share of
($0.49 )
-- Operating cash flow of ($1.6) billion and free cash flow of ($2.3)
billion (non-GAAP)*
-- Total company backlog grew to $545 billion , including over 5,600
commercial airplanes
Table 1. Summary Financial Results First Quarter (Dollars in Millions, except per share 2025 2024 Change data) Revenues$19,496 $16,569 18% GAAP Earnings/(loss) from operations$461 ($86 ) NM Operating margins 2.4 % (0.5) % NM Net loss ($31 ) ($355 ) NM Basic loss per share ($0.16 ) ($0.56 ) NM Operating cash flow ($1,616 ) ($3,362 ) NM Non-GAAP* Core operating earnings/(loss)$199 ($388 ) NM Core operating margins 1.0 % (2.3) % NM Core loss per share ($0.49 ) ($1.13 ) NM
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
"Our company is moving in the right direction as we start to see improved operational performance across our businesses from our ongoing focus on safety and quality," said
Table 2. Cash Flow First Quarter (Millions) 2025 2024 Operating cash flow ($1,616 ) ($3,362 ) Less additions to property, plant & ($674 ) ($567 ) equipment Free cash flow* ($2,290 ) ($3,929 )
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
Operating cash flow was
Table 3. Cash, Marketable Securities Quarter End and Debt Balances (Billions) 1Q 2025 4Q 2024 Cash and investments in marketable$23.7 $26.3 securities1 Consolidated debt$53.6 $53.9
1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities totaled
Total company backlog at quarter end was
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes First Quarter (Dollars in Millions) 2025 2024 Change Deliveries 130 83 57% Revenues$8,147 $4,653 75% Loss from operations ($537 ) ($1,143 ) NM Operating margins (6.6) % (24.6) % NM
Commercial Airplanes first quarter revenue of
The 737 program gradually increased production in the quarter and maintains plans to reach 38 per month this year. The 787 program continued to stabilize production at five per month in the quarter and still expects to increase to seven per month this year. The 777X program began expanded
Commercial Airplanes booked 221 net orders in the quarter, including 20 777-9 and 20 787-10 airplanes for
Defense, Space & Security
Table 5. Defense, Space & Security First Quarter (Dollars in Millions) 2025 2024 Change Revenues$6,298 $6,950 (9)% Earnings from operations$155 $151 3% Operating margins 2.5 % 2.2 % 0.3 pts
Defense, Space & Security first quarter revenue was
During the quarter, Defense, Space & Security was selected by the
Table 6. Global Services First Quarter (Dollars in Millions) 2025 2024 Change Revenues$5,063 $5,045 —% Earnings from operations$943 $916 3% Operating margins 18.6 % 18.2 % 0.4 pts
In the quarter,
Additional Financial Information
Table 7. Additional Financial Information First Quarter (Dollars in Millions) 2025 2024 Revenues Unallocated items, eliminations and other ($12 ) ($79 ) Loss from operations Unallocated items, eliminations and other ($362 ) ($312 ) FAS/CAS service cost adjustment$262 $302 Other income, net$323 $277 Interest and debt expense ($708 ) ($569 ) Effective tax rate 140.8 % 6.1 %
Unallocated items, eliminations and other primarily reflects timing of allocations. The first quarter effective tax rate primarily reflects an increase in the valuation allowance.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in
Core Operating Earnings/(Loss), Core Operating Margins and Core Earnings/(Loss) Per Share
Core operating earnings/(loss) is defined as GAAP
Earnings/(
l
oss) from operations
excluding the
FAS/CAS service cost adjustment.
The
FAS/CAS service cost adjustment
represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margins is defined as Core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP
Diluted earnings/(loss) per share
excluding the net earnings/(loss) per share impact of the
FAS/CAS service cost adjustment
and
Non-operating pension and postretirement expenses
. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment . Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 for a reconciliation of free cash flow to the most directly comparable GAAP measure, operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, industry projections and outlooks, plans, objectives and goals, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate.
These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, production quality issues, commercial airplane production rates, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the
Additional information concerning these and other factors can be found in our filings with the
Contact: Investor Relations:Matt Welch orDavid Dufault BoeingInvestorRelations@boeing.com Communications:Wilson Chow media@boeing.com
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three months ended
March 31
(Dollars in millions, except per share data) 2025 2024
Sales of products $16,147 $13,268
Sales of services 3,349 3,301
Total revenues 19,496 16,569
Cost of products (14,379) (12,064)
Cost of services (2,700) (2,629)
Total costs and expenses (17,079) (14,693)
2,417 1,876
Income from operating investments, net 3 67
General and administrative expense (1,112) (1,161)
Research and development expense, net (844) (868)
Loss on dispositions, net (3)
Earnings/(loss) from operations 461 (86)
Other income, net 323 277
Interest and debt expense (708) (569)
Earnings/(loss) before income taxes 76 (378)
Income tax (expense)/benefit (107) 23
Net loss (31) (355)
Less: net earnings/(loss) attributable to noncontrolling 6 (12)
interest
Net loss attributable to Boeing shareholders ($37 ) ($343 )
Less: Mandatory convertible preferred stock dividends 86
accumulated during the period
Net loss attributable to Boeing common shareholders ($123 ) ($343 )
Basic loss per share ($0.16 ) ($0.56 )
Diluted loss per share ($0.16 ) ($0.56 )
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) March 31 December 31
2025 2024
Assets
Cash and cash equivalents $10,142 $13,801
Short-term and other investments 13,532 12,481
Accounts receivable, net 3,204 2,631
Unbilled receivables, net 9,031 8,363
Current portion of financing receivables, net 202 207
Inventories 89,077 87,550
Other current assets, net 2,474 2,965
Total current assets 127,662 127,998
Financing receivables and operating lease equipment, 308 314
net
Property, plant and equipment, net of accumulated 11,459 11,412
depreciation of $23,193 and $22,925
Goodwill 8,091 8,084
Acquired intangible assets, net 1,904 1,957
Deferred income taxes 137 185
Investments 1,001 999
Other assets, net of accumulated amortization of 5,932 5,414
$1,160 and $1,085
Total assets $156,494 $156,363
Liabilities and equity
Accounts payable $11,034 $11,364
Accrued liabilities 23,576 24,103
Advances and progress billings 61,114 60,333
Short-term debt and current portion of long-term debt 7,930 1,278
Total current liabilities 103,654 97,078
Deferred income taxes 162 122
Accrued retiree health care 2,146 2,176
Accrued pension plan liability, net 5,909 5,997
Other long-term liabilities 2,260 2,318
Long-term debt 45,688 52,586
Total liabilities 159,819 160,277
Shareholders' equity:
Mandatory convertible preferred stock, 6.00% Series A,
par value $1.00 -
20,000,000 shares authorized; 5,750,000 shares issued; 6 6
aggregate
liquidation preference $5,750
Common stock, par value $5.00 – 1,200,000,000
shares authorized; 5,061 5,061
1,012,261,159 shares issued
Additional paid-in capital 19,008 18,964
Treasury stock, at cost - 258,889,678 and (31,879) (32,386)
263,044,840 shares
Retained earnings 15,239 15,362
Accumulated other comprehensive loss (10,760) (10,915)
Total shareholders' deficit (3,325) (3,908)
Noncontrolling interests (6)
Total equity (3,325) (3,914)
Total liabilities and equity $156,494 $156,363
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Three months ended
March 31
(Dollars in millions) 2025 2024
Cash flows–operating activities:
Net loss ($31 ) ($355 )
Adjustments to reconcile net loss to net cash used by
operating activities:
Non-cash items –
Share-based plans expense 135 119
Treasury shares issued for 401(k) contribution 418 606
Depreciation and amortization 466 442
Investment/asset impairment charges, net 7 21
Loss on dispositions, net 3
Other charges and credits, net 99 10
Changes in assets and liabilities –
Accounts receivable (570) (328)
Unbilled receivables (671) (1,357)
Advances and progress billings 781 2,718
Inventories (1,521) (3,778)
Other current assets (29) (249)
Accounts payable (95) (264)
Accrued liabilities (386) (666)
Income taxes receivable, payable and deferred 26 (59)
Other long-term liabilities (151) (83)
Pension and other postretirement plans (150) (261)
Financing receivables and operating lease equipment, net 12 79
Other 41 43
Net cash used by operating activities (1,616) (3,362)
Cash flows – investing activities:
Payments to acquire property, plant and equipment (674) (567)
Proceeds from disposals of property, plant and equipment 3 11
Contributions to investments (8,797) (243)
Proceeds from investments 7,750 2,907
Other 1 (34)
Net cash used by investing activities (1,717) 2,074
Cash flows – financing activities:
New borrowings 29 27
Debt repayments (295) (4,442)
Employee taxes on certain share-based payment arrangements (14) (65)
Dividends paid on mandatory convertible preferred stock (72)
Other 14 18
Net cash used by financing activities (338) (4,462)
Effect of exchange rate changes on cash and cash 12 (28)
equivalents
Net decrease in cash & cash equivalents, including (3,659) (5,778)
restricted
Cash & cash equivalents, including restricted, at beginning 13,822 12,713
of year
Cash & cash equivalents, including restricted, at end of 10,163 6,935
period
Less restricted cash & cash equivalents, included in 21 21
Investments
Cash & cash equivalents at end of period $10,142 $6,914
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Three months ended
March 31
(Dollars in millions) 2025 2024
Revenues:
Commercial Airplanes $8,147 $4,653
Defense, Space & Security 6,298 6,950
Global Services 5,063 5,045
Unallocated items, eliminations and other (12) (79)
Total revenues $19,496 $16,569
Earnings/(loss) from operations:
Commercial Airplanes ($537 ) ($1,143 )
Defense, Space & Security 155 151
Global Services 943 916
Segment operating earnings/(loss) 561 (76)
Unallocated items, eliminations and other (362) (312)
FAS/CAS service cost adjustment 262 302
Earnings/(loss) from operations 461 (86)
Other income, net 323 277
Interest and debt expense (708) (569)
Earnings/(loss) before income taxes 76 (378)
Income tax (expense)/benefit (107) 23
Net loss (31) (355)
Less: net earnings/(loss) attributable to noncontrolling 6 (12)
interest
Net loss attributable to Boeing shareholders ($37 ) ($343 )
Less: Mandatory convertible preferred stock dividends 86
accumulated during the period
Net loss attributable to Boeing common shareholders ($123 ) ($343 )
Research and development expense, net:
Commercial Airplanes $534 $518
Defense, Space & Security 199 235
Global Services 29 26
Other 82 89
Total research and development expense, net $844 $868
Unallocated items, eliminations and other:
Share-based plans ($30 ) $10
Deferred compensation 5 (30)
Amortization of previously capitalized interest (21) (23)
Research and development expense, net (82) (89)
Eliminations and other unallocated items (234) (180)
Sub-total (included in Core operating loss) (362) (312)
Pension FAS/CAS service cost adjustment 193 230
Postretirement FAS/CAS service cost adjustment 69 72
FAS/CAS service cost adjustment $262 $302
Total ($100 ) ($10 )
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Three months ended
Deliveries
March 31
Commercial Airplanes 2025 2024
737 105 67
767 5 3
777 7 —
787 13 13
Total 130 83
Defense, Space & Security
AH-64 Apache (New) 4 —
AH-64 Apache (Remanufactured) 11 6
CH-47 Chinook (New) 1 1
CH-47 Chinook (Renewed) 2 1
F-15 Models 1 1
F/A-18 Models 5 1
KC-46 Tanker — 3
MH-139 1 —
P-8 Models 1 1
Total1 26 14
1 Deliveries of new-build production units, including
remanufactures and modifications
Total backlog(Dollars in millions) March 31 December 31
2025 2024
Commercial Airplanes $460,447 $435,175
Defense, Space & Security 61,567 64,023
Global Services 22,036 21,403
Unallocated items, eliminations and other 686 735
Total backlog $544,736 $521,336
Contractual backlog $523,964 $498,802
Unobligated backlog 20,772 22,534
Total backlog $544,736 $521,336
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margins, and core loss per share with the most directly comparable GAAP financial measures of loss from operations, operating margins, and diluted loss per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, except per First Quarter 2025 First Quarter 2024
share data)
$ Per Share $ Per Share
millions millions
Revenues $19,496 $16,569
(Loss)/earnings from operations 461 (86)
(GAAP)
Operating margins (GAAP) 2.4 % (0.5) %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost (193) (230)
adjustment
Postretirement FAS/CAS service (69) (72)
cost adjustment
FAS/CAS service cost adjustment (262) (302)
Core operating (loss)/earnings $199 ($388 )
(non-GAAP)
Core operating margins 1.0 % (2.3) %
(non-GAAP)
Diluted loss per share (GAAP) ($0.16 ) ($0.56 )
Pension FAS/CAS service cost ($193 ) ($0.26 ) ($230 ) ($0.37 )
adjustment
Postretirement FAS/CAS service (69) (0.09) (72) (0.12)
cost adjustment
Non-operating pension income (43) (0.06) (123) (0.20)
Non-operating postretirement (5) (0.01) (18) (0.03)
income
Provision for deferred income 65 0.09 93 0.15
taxes on adjustments 1
Subtotal of adjustments ($245 ) ($0.33 ) ($350 ) ($0.57 )
Core loss per share (non-GAAP) ($0.49 ) ($1.13 )
Diluted weighted average common 753.4 612.9
shares outstanding (in millions)
1The income tax impact is calculated using theU.S. corporate statutory tax rate.
SOURCE Boeing
