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Results impacted by the International Association of Machinists and Aerospace Workers (IAM) work stoppage and agreement, as well as charges in the defense segment.
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Boeing's Q4 Earnings Report
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Boeing has stated that its forthcoming financial results will incorporate the effects of the IAM work stoppage and agreement, certain charges concerning its Defence, Space & Security programs, and costs associated with workforce reductions announced last year. The company anticipates fourth-quarter revenue of $15.2 billion, a GAAP loss per share of ($5.46), and an operating cash flow of ($3.5) billion. By the end of the quarter, cash and investments in marketable securities totalled $26.3 billion.
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Kelly Ortberg, Boeing's President and CEO, stated, "Despite facing immediate challenges, we made crucial moves to stabilize our business in the quarter. These included reaching an agreement with our IAM-represented teammates and successfully raising capital to bolster our balance sheet." He added, "We also resumed production for the 737, 767, and 777/777X, and our team remains committed to securing a new future for Boeing."
The results from Commercial Airplanes will show the effects of the IAM work stoppage and agreement, which include reduced deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs. The $0.9 billion pre-tax charge for the 777X program reflects increased estimated labour costs linked to finalizing the IAM agreement and will be recorded over the next few years. Boeing still expects the first delivery of the 777-9 to take place in 2026. Commercial Airplanes anticipates fourth-quarter revenue of $4.8 billion and an operating margin of (43.9) percent.
Defence, Space & Security foresees pre-tax earnings charges totalling $1.7 billion on the KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25 programs. The $0.8 billion pre-tax charge associated with the KC-46A program is due to increased estimated manufacturing costs, which include effects from the IAM work stoppage and agreement. The $0.5 billion pre-tax charge on the T-7A program is mainly a result of higher anticipated costs for production lots scheduled for 2026 and beyond. Defence, Space & Security expects to report fourth-quarter revenue of $5.4 billion and an operating margin of (41.9) per cent.
