Boeing Sees Wider Loss, Weak Revenues In Q4; Shares Hit

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(RTTNews) - Aerospace and defense major Boeing Co. said it projects a sharply wider loss and weak revenues in its fourth quarter, mainly impacted by the work stoppage and agreement by the International Association of Machinists and Aerospace Workers or IAM, as well as charges for certain Defense, Space & Security programs. Following the preliminary fourth-quarter results, the stock was down 1.8 percent in the extended trading on the NYSE. In pre-market activity, the shares are currently down 1.7%, at $175.56.

Boeing shares had closed Thursday's regular trading at $178.50, up 2.12%.

Kelly Ortberg, Boeing president and chief executive officer, said, "Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet. We also restarted 737, 767 and 777/777X production and our team remains focused on the hard work ahead to build a new future for Boeing."

For the fourth quarter, the company projects loss per share of $5.46 and revenue of $15.2 billion.

In the same quarter prior year, the Chicago-based company reported net loss of $0.04 per share, core loss of $0.47 per share and total revenues of $22.02 billion, primarily driven by higher commercial volume.

The Wall Street analysts expect the company to report a loss of $1.66 per share on revenues of $15.16 billion for the quarter. Analysts' estimates typically exclude special items.

In the quarter, Commercial Airplanes expects to report revenue of $4.8 billion and operating margin of negative 43.9 percent.

Defense, Space & Security expects to report revenue of $5.4 billion and operating margin of negative 41.9 percent.

The company noted that Commercial Airplanes results will reflect impacts associated with the IAM work stoppage and agreement including lower deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs.

The 777X program pre-tax charge would be $0.9 billion, reflecting higher estimated labor costs associated with finalizing the IAM agreement. The charge will be incurred over the next several years. The company said it still anticipates first delivery of the 777-9 in 2026.

Defense, Space & Security expects to recognize pre-tax earnings charges of $1.7 billion on the KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25 programs. The KC-46A program pre-tax charge of $0.8 billion reflects higher estimated manufacturing costs, including impacts of the IAM work stoppage and agreement. The T-7A program pre-tax charge of $0.5 billion was primarily driven by higher estimated costs on production lots in 2026 and beyond.

The company also projects operating cash flow of $3.5 billion for the latest quarter.

Cash and investments in marketable securities totaled $26.3 billion at the end of the quarter.

The company plans to report its fourth-quarter results on January 28.