The Boeing Company has recorded third-quarter revenue of US$18.1 billion and a net loss of US$1.6 billion. GAAP loss per share was (US$2.70) and core loss per share (non-GAAP) was (US$3.26). Third quarter results were impacted by unfavourable defence performance and lower 737 deliveries.
Commercial Airplanes third quarter revenue increased to US$7.9 billion driven by higher 787 deliveries. Operating margin of (8.6%) also reflects lower 737 deliveries as well as abnormal costs and period expenses, including research and development.
On the 737 programme, during the quarter a supplier non-conformance was identified on the aft pressure bulkhead section of certain 737 airplanes. This is not an immediate safety of flight issue and the in-service fleet can continue operating safely. Near-term deliveries and production will be impacted as the programme performs necessary inspections and rework and the company now expects to deliver 375-400 airplanes this year. On production, suppliers are continuing with planned rate increases and the company expects to complete the final assembly transition to 38 per-month by year-end, with plans to increase to 50 per-month in the 2025/2026 timeframe. The estimated cost associated with performing the rework is immaterial and included in third-quarter results.
The 787 programme is now transitioning production to five per-month and plans to increase to ten per-month in the 2025/2026 timeframe. The programme still expects to deliver 70-80 airplanes this year.
During the quarter, Commercial Airplanes booked 398 net orders, including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes for United Airlines, and 39 787 airplanes for Saudi Arabian Airlines. Commercial Airplanes delivered 105 airplanes during the quarter and backlog included over 5,100 airplanes valued at US$392 billion.
Defense, Space & Security third quarter revenue was US$5.5 billion. Third-quarter operating margin was (16.9%), due to a US$482 million loss on the VC-25B programme driven by higher estimated manufacturing cost related to engineering changes and labour instability, as well as resolution of supplier negotiations. Results were also impacted by US$315 million of losses on a satellite contract due to estimated customer considerations and increased costs to enhance the constellation and meet lifecycle commitments.
During the quarter, Defense, Space & Security delivered the first T-7A Red Hawk to the U.S. Air Force and captured an award from the U.S. Army for 21 AH-64E Apaches. Backlog at Defense, Space & Security was US$58 billion, of which 29% represents orders from customers outside the U.S. (£1.00 = US$1.22 at time of publication).
