Boeing reported a first quarter loss of $1.27 per share on Wednesday, marking the company’s seventh straight quarter in the red, though this quarter was better than last.
Boeing attributed this to 737 MAX production issues, but still announced a plan to increase production from 31 to 38 planes per month. The company did see a jump in revenue from higher commercial and military sales.
The overall numbers:
- Operating cash flow = $300M
- Revenue = $17.9B, a 28% increase YoY
- Total backlog = $411B
Breaking out defense & space:
- Revenue = $6.5B, a ~19% increase YoY
- Total backlog = $58B
Boeing’s Defense, Space, and Security revenue leaned heavily on military orders including 15 KC-46A tankers, an Air Force E-7 development contract, and an award for 184 Apaches from the US Army.
Pros and cons: Executives didn’t mention Boeing’s space activities in the earnings release or presentation, but the company suffered at least one setback in the quarter: a further delay of the first crewed launch of the CST-100 Starliner spacecraft until at least late July due to lengthy certification paperwork. On the plus side, Boeing opened a new production facility in New Orleans where it will build a new upper stage for SLS.
Market reaction: Boeing avoided a negative market reaction with cash flow reassurances that kept investor fears at bay despite the larger-than-expected losses.