Problematic projects drag down Boeing, with a huge loss of $6 billion in Q3, the largest since 2020 | Financial Report Insights

Boeing announced its largest quarterly loss since 2020. In the third quarter, Boeing reported a net loss of $6.17 billion, with both revenue and free cash flow falling short of expectations.

On Wednesday the 23rd, Boeing of the United States released its Q3 financial report. The data shows:

• Revenue in the third quarter was $17.84 billion, estimated at $17.89 billion.
• Adjusted free cash flow in the third quarter was -$1.96 billion, estimated at -$1.87 billion.
• Net loss in the third quarter was $6.17 billion.
• Net loss per share was $9.97.

To increase cash reserves, the company has applied to sell up to $25 billion in stocks or debt. After the data was released, Boeing's US stocks fell by 0.63% in pre-market trading.

Boeing Deep in Crisis

In recent years, Boeing has been struggling due to two fatal crashes, a criminal conviction, an in-flight explosion, production delays, and a recent strike.

On Wednesday, in a memo to employees, CEO Kelly Ortberg emphasized the need to improve Boeing's defense business, as well as the performance of the 737 MAX and 777 projects, while stabilizing Boeing as a whole. He stated:

"We must better understand and actively manage the risks of these projects. This includes rigorous planning and risk management at all stages of the projects, including the bidding stage."

He mentioned that the company needs to downsize and improve the execution of new aircraft models, all of which have been delayed for several years.

"This is a big ship that takes time to turn around, but once it does, it has the ability to become great again."

Ortberg also stated that the company needs to reach an agreement with the striking mechanics and restart the factories that have been idle since September 13.

The union representing 33,000 workers will vote on the company's latest proposal on Wednesday, hoping to increase wages by 35% over four years, provide a $7,000 ratification bonus, and increase retirement benefits.

"A lot of work to do before developing new aircraft," says Boeing

Ortberg also mentioned in his speech a recent meeting with company executives to discuss cultural reform.

"We need to prevent problems from worsening, collaborate better to identify, fix, and understand the root causes. I have introduced a more detailed business rhythm to drive the entire organization, and this transformation process is underway."

In recent years, executives including the former CEO, former HR chief, and current CFO have all lived outside Boeing's headquarters in Arlington, Virginia.

He also pointed out that "there is a lot of work to do before developing new aircraft." Ortberg stated:

> "This includes stabilizing our business, enhancing project execution, streamlining our investment portfolio in areas where we excel, and restoring our balance sheet, so that we can pave the way for the next generation of commercial aircraft."

He did not mention potential financing, according to Reuters, financing could be around $15 billion.