Key Points
- Boeing reported a $11.8 billion annual loss, its largest in four years. Shares rose 6% on production progress, delivering 33 737 jets in January.
- The FAA cap on 737 production is expected to lift in the second half of 2025. Quarterly revenue fell 31% to $15.24 billion, missing expectations.
- Boeing anticipates positive cash flow by late 2025 despite the current cash burn.
- CEO Kelly Ortberg is focused on stabilizing production and cultural transformation.
Boeing shares rose 6% on Tuesday, following reports of progress in boosting production despite the company recording its largest annual loss in four years—an $11.8 billion setback attributed to operational challenges, a major strike, and fixed-price defense program charges. CEO Kelly Ortberg, who assumed leadership in August, emphasized a multi-year effort to stabilize production and restore the company’s culture.
Chief Financial Officer Brian West revealed that Boeing delivered 33 737 jets in January and aims to surpass the current cap of 38 per month imposed by the Federal Aviation Administration (FAA) later this year. Ortberg expressed confidence in achieving FAA approval by the second half of 2025, enabling higher production rates.
Boeing’s 787 widebody jets have returned to a production rate of five per month, with plans to increase to seven once performance metrics indicate system stability, likely in the next quarter. However, the company expects continued cash burn in the first half of 2025 before turning cash flow positive later in the year.
The company reported a fourth-quarter loss of $3.86 billion, driven by “disappointing” charges in defense programs. Quarterly revenue fell 31% to $15.24 billion, missing analyst expectations of $16.21 billion. Free cash flow goals of $10 billion annually by 2025-2026 are now anticipated to face delays.
Despite challenges, Boeing remains focused on stabilizing production, certifying three models, and resolving a thrust link issue with the 777X widebody jet, which resumed flight tests this month. Ortberg also noted ongoing collaboration with Tesla CEO Elon Musk to expedite delivery of the Air Force One program. Boeing’s culture overhaul and operational stabilization remain central to its turnaround strategy as it navigates regulatory and market challenges.