Boeing Reports Fourth-Quarter Results

Cision

ARLINGTON, Va., Jan. 25, 2023 /PRNewswire/ --

Fourth Quarter 2022

• Generated $3.5 billion of operating cash flow and $3.1 billion of free cash flow (non-GAAP); cash and marketable securities of $17.2 billion

• Certification efforts continue on 737-7 and 737-10

• Delivered 152 commercial airplanes and recorded 376 net orders

Full Year 2022

• Generated $3.5 billion of operating cash flow and $2.3 billion of free cash flow (non-GAAP)

• Delivered 480 commercial airplanes and recorded 808 net orders

• Total company backlog grew to $404 billion; including over 4,500 commercial airplanes

Outlook for 2023

• Reaffirming guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion free cash flow (non-GAAP)

Table 1. Summary Financial Results						Fourth Quarter																		Full Year
(Dollars in Millions, except per share data)						2022						2021						Change						2022						2021						Change
Revenues						$19,980						$14,793						35 %						$66,608						$62,286						7 %
GAAP
Loss From Operations						($353)						($4,171)						NM						($3,547)						($2,902)						NM
Operating Margin						(1.8)		%				(28.2)		%				NM						(5.3)		%				(4.7)		%				NM
Net Loss						($663)						($4,164)						NM						($5,053)						($4,290)						NM
Loss Per Share						($1.06)						($7.02)						NM						($8.30)						($7.15)						NM
Operating Cash Flow						$3,457						$716						383 %						$3,512						($3,416)						NM
Non-GAAP*
Core Operating Loss						($650)						($4,536)						NM						($4,690)						($4,075)						NM
Core Operating Margin						(3.3)		%				(30.7)		%				NM						(7.0)		%				(6.5)		%				NM
Core Loss Per Share						($1.75)						($7.69)						NM						($11.06)						($9.44)						NM

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."

The Boeing Company [NYSE: BA] recorded fourth-quarter revenue of $20.0 billion, GAAP loss per share of ($1.06), and core loss per share (non-GAAP)* of ($1.75) (Table 1). Boeing also generated $3.5 billion of operating cash flow and $3.1 billion of free cash flow (non-GAAP). Results improved on commercial volume and performance.

"We had a solid fourth quarter, and 2022 proved to be an important year in our recovery," said Dave Calhoun, Boeing President and Chief Executive Officer. "Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond. We are investing in our business, innovating and prioritizing safety, quality and transparency in all that we do. While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength."

Table 2. Cash Flow						Fourth Quarter												Full Year
(Millions)						2022						2021						2022						2021
Operating Cash Flow						$3,457						$716						$3,512						($3,416)
Less Additions to Property, Plant & Equipment						($326)						($222)						($1,222)						($980)
Free Cash Flow*						$3,131						$494						$2,290						($4,396)

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."

Operating cash flow improved to $3.5 billion in the quarter, reflecting higher commercial deliveries and timing of receipts and expenditures (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances						Quarter-End
(Billions)						Q4 22						Q3 22
Cash						$14.6						$13.5
Marketable Securities1						$2.6						$0.8
Total						$17.2						$14.3
Consolidated Debt						$57.0						$57.2

1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."

Cash and investments in marketable securities increased to $17.2 billion, compared to $14.3 billion at the beginning of the quarter, primarily driven by cash from operations (Table 3). The company has access to credit facilities of $12.0 billion, which remain undrawn.

Total company backlog at quarter-end was $404 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes						Fourth Quarter																		Full Year
(Dollars in Millions)						2022						2021						Change						2022						2021						Change
Commercial Airplanes Deliveries						152						99						54 %						480						340						41 %
Revenues						$9,224						$4,750						94 %						$25,867						$19,493						33 %
Loss from Operations						($626)						($4,454)						NM						($2,370)						($6,475)						NM
Operating Margin						(6.8)		%				(93.8)		%				NM						(9.2)		%				(33.2)		%				NM

Commercial Airplanes fourth-quarter revenue increased to $9.2 billion driven by higher 737 and 787 deliveries, partially offset by 787 customer considerations (Table 4). Operating margin of (6.8) percent also reflects abnormal costs and period expenses, including research and development.

The 737 program is stabilizing production rate at 31 per month with plans to ramp production to approximately 50 per month in the 2025/2026 timeframe. Additionally, the 787 program continues at a low production rate with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe.

During the quarter, the company secured net orders for 376 aircraft, including an order from United Airlines for 100 737 MAX and 100 787 airplanes. Commercial Airplanes delivered 152 airplanes during the quarter and backlog included over 4,500 airplanes valued at $330 billion.

Defense, Space & Security

Table 5. Defense, Space & Security						Fourth Quarter																		Full Year
(Dollars in Millions)						2022						2021						Change						2022						2021						Change
Revenues						$6,181						$5,862						5 %						$23,162						$26,540						(13) %
Earnings/(loss) from Operations						$112						($255)						NM						($3,544)						$1,544						NM
Operating Margin						1.8		%				(4.4)		%				NM						(15.3)		%				5.8		%				NM

Defense, Space & Security fourth-quarter revenue was $6.2 billion. Fourth-quarter operating margin of 1.8 percent reflects the continued operational impact of labor instability and supply chain disruption.

Defense, Space & Security delivered 45 aircraft and three satellites, including the first P-8A Poseidon to New Zealand. Also in the quarter, the Boeing-built Space Launch System core stage powered the first Artemis I mission to the moon and the T-7A program completed engine testing.

During the quarter, Defense, Space & Security captured awards from Japan for two KC-46A Tankers and from the Egyptian Air Force for 12 CH-47F Chinook helicopters. Backlog at Defense, Space & Security was $54 billion, of which 28 percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services						Fourth Quarter																		Full Year
(Dollars in Millions)						2022						2021						Change						2022						2021						Change
Revenues						$4,567						$4,291						6 %						$17,611						$16,328						8 %
Earnings from Operations						$634						$401						58 %						$2,727						$2,017						35 %
Operating Margin						13.9		%				9.3		%				4.6 pts						15.5		%				12.4		%				3.1 pts

Global Services fourth-quarter revenue of $4.6 billion and operating margin of 13.9 percent reflect higher commercial volume, partially offset by lower government volume.

During the quarter, Global Services finalized the U.S. Air Force F-15 depot support order and opened the Germany Distribution Center to serve 6,000+ customers with chemicals and specialty materials.

Additional Financial Information

Table 7. Additional Financial Information

Fourth Quarter

Full Year

(Dollars in Millions)