Boeing On Wednesday, it said it will continue to burn cash this quarter and reported a wider quarterly loss and weaker revenue than analysts had expected as its commercial aircraft and defense programs continued to struggle.
Boeing also said it has hired Robert “Kelly” Ortberg, a veteran of more than three decades in the aerospace industry, to become its next CEO as the manufacturer tries to regain its footing.
Here's how Boeing performed in the second quarter compared to estimates compiled by LSEG:
- Loss per share: $2.90 per adjusted share vs. $1.97 per adjusted share
- Revenue: $16.87 billion vs. $17.23 billion
“Despite a challenging quarter, we are making substantial progress in strengthening our quality management system and positioning our company for the future,” Chief Executive Dave Calhoun said in an earnings release Wednesday. Calhoun said in March that he would step down at the end of the year.
Boeing burned through $4.3 billion in cash in the second quarter and Chief Financial Officer Brian West said on the earnings call that due to “near-term working capital pressures, the third quarter is expected to be another use of cash.”
Boeing reported a second-quarter net loss of $1.44 billion, or $2.33 per share, compared with a loss of $149 million, or 25 cents per share, during the same period a year earlier. On an adjusted basis, the company reported a loss of $2.90 per share, nearly $1 per share below analysts' expectations, according to LSEG.
Revenue for the three months ended June 30 fell 15% to $16.87 billion.
Boeing is trying to stabilize its operations after the explosion of a door stopper on a nearly new 737 Max earlier this year reignited additional scrutiny from regulators and further slowed deliveries of new, more fuel-efficient planes to airlines.
On Wednesday, Boeing said it still plans to increase production of its Max jets to 38 a month. Analysts said it was producing about 25 a month in the latest quarter.
The company's major commercial aircraft unit reported a 32% year-over-year drop in revenue to $6 billion.
Low deliveries and production have delayed some of Boeing's financial targets.
West warned in May that the company would continue to burn cash in the second quarter, similar to the first, largely due to lower-than-expected production and delivery rates.
The automaker said it burned $4.3 billion in cash in the second quarter.
Other Boeing business units have also faced cost overruns and delays, such as its defense unit, which is building the two Boeing 747 jets that will serve as Air Force One, which are behind schedule.
The company's defense unit reported a 2% decline in second-quarter revenue to $6.02 billion. The segment had a loss of $913 million during the period, nearly double the $527 million it lost during the same quarter in 2023. Some of the losses “reflect higher estimated engineering and manufacturing costs, as well as technical challenges,” Boeing said.
The company's shares rose more than 3% in midday trading.
