Boeing reports $11.8bn annual loss – its largest since 2020

Core Insights - Boeing reported an annual loss of $11.83 billion, the largest since 2020, due to challenges in its commercial and defense units and the impact of a strike by US west coast factory workers [1] - The company is facing increased competition from Airbus and scrutiny from regulators and customers following a series of operational missteps [1] - Boeing's shares rose 0.5$4.1 billion, which was slightly better than analysts' expectations of $4.26 billion [2] - In the fourth quarter, Boeing reported a loss of$3.86 billion, attributed to disappointing charges in fixed-price defense programs, with revenue falling 31% to $15.24 billion, missing expectations of$16.21 billion [3] - The quarterly adjusted loss per share was $5.90, significantly higher than the expected loss of$3 per share [4] - Cash burn for 2024 was reported at $14.3 billion, compared to a cash flow of$4.43 billion in 2023 [4] Operational Challenges - Boeing has incurred over 30 billion in losses since 2019, primarily due to two fatal crashes of the 737 Max, which raised production quality and safety concerns [5] - The defense, space & security business reported a loss of 5.41 billion in 2024, impacted by overruns on fixed-price programs [6] - The company is working on improving its supply chain and has returned to an output rate of five 787 jets per month by the end of 2024, despite facing delays in certain areas [6] Strategic Initiatives - CEO Kelly Ortberg emphasized a four-part plan to turn the business around, which includes a multi-year effort to address Boeing's corporate culture [4] - Ortberg stated that the company is now more proactive in identifying risks associated with its defense programs [3]