Boeing's Q3 revenues showed an increase.

Boeing's Third Quarter Success

Boeing (BA) has announced its third quarter earnings, which have caught the attention of investors. The company reported revenues of $23.27 billion, surpassing the $22.29 billion forecast by Bloomberg consensus. This represents a 30% increase compared to $21.68 billion in the previous quarter.

Boeing recorded an adjusted loss per share of $7.47, which was anticipated to be $4.92. The bulk of this loss was attributed to a one-time expense related to the 777X program.

The company’s adjusted free cash flow was reported at -238 million dollars, compared to the expected -884.1 million dollars. Last year, Boeing had reported a massive net loss of $6.17 billion and $1.34 billion in negative free cash flow.

Operating cash flow improved to $1.12 billion in the third quarter, whereas estimates had projected -197 million dollars. In pre-market trading, Boeing's shares showed an increase.

Boeing's latest large-body aircraft, the 777X, continues to cause delays in contracts and has yet to receive regulatory approval. Due to this delay, Boeing recorded a $4.9 billion expense.

Boeing CEO Kelly Ortberg stated, "Thanks to our continued focus on safety and quality, we achieved positive free cash flow this quarter and reached important milestones. We also reached an agreement with the FAA to increase 737 production to 42 aircraft," said Ortberg, expressing disappointment over the delays in the 777X program but noted that the aircraft tests have been successful.

Earlier this month, Boeing announced that third quarter commercial deliveries totaled 160 jets, up from 150 jets in the previous quarter. Of the third quarter deliveries, 121 were 737 Max, 24 were 787, 9 were 777, and 6 were 767 aircraft.

The FAA approved Boeing's plan to increase 737 Max production speed from 38 to 42 aircraft. However, production has not yet reached this level. Ortberg's long-term goal is to ramp up 737 Max production to 47 aircraft.

Boeing's future in the defense sector remains uncertain. The company's defense workers in St. Louis rejected the latest contract offer on Saturday, extending their strike into its 13th week. The International Association of Machinists and Aerospace Workers (IAM) emphasized that Boeing has not met the demands of its approximately 3,200 striking members.

Boeing signed significant deals with major companies such as Norwegian Group, Turkish Airlines, WestJet, and Korean Air in the third quarter.

Boeing's main rival, Airbus, surpassed Boeing in global deliveries before the pandemic in 2019 and has maintained its leadership since then. The company has revised its targets to align with its goals, but engine supply issues pose challenges for the French company.