Boeing posts Q3 revenue beat, improving cash flow burn rate as CEO Ortberg's turnaround plan takes off
Boeing (BA) posted a third quarter revenue beat and an improving cash-flow burn rate before the bell on Wednesday, as CEO Kelly Ortberg's turnaround of the troubled aviation giant rolled on.
The planemaker reported Q3 revenue of $23.27 billion compared with the $22.29 billion expected, per Bloomberg consensus — higher than last quarter's $21.68 billion and a 30% jump compared with a year ago.
It posted an adjusted loss per share (core loss per share) of $7.47 versus the $4.92 estimated, but that was attributed to a one-time charge related to the program for Boeing's latest wide-body jet, the 777X.
Boeing's adjusted free cash flow came in at negative $238 million, compared to the negative $884.1 million estimated, a major improvement for the company. A year ago, Boeing reported a staggering net loss of $6.17 billion and negative free cash flow of $1.34 billion.
Operating cash flow also improved, coming in at $1.12 billion in Q3 vs. estimates of negative $197 million.
Boeing stock wavered in premarket trading and opened down around 2% in early trade.
"With a sustained focus on safety and quality, we achieved important milestones in our recovery as we generated positive free cash flow in the quarter," Boeing CEO Kelly Ortberg said in a statement.
Boeing's 777X remains behind schedule and has not yet been certified by regulators, leading to the company taking a $4.9 billion charge due to the delay. That contributed to its core loss per share this quarter, it said.
"It's obviously a disappointment, but we just need more time to complete the certification," Ortberg said during the earnings call.
Earlier this month, Boeing announced Q3 commercial deliveries hit 160 jets versus the 150 delivered last quarter and 116 delivered in the same quarter a year ago. Of Q3 deliveries, 121 were 737 Max jets (compared to 92 delivered a year ago), 24 were 787 jets (14 last year), nine were 777s (four last year), and six were 767s (six last year).
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As for cranking up sales of its bestselling 737 Max, the FAA recently approved Boeing to raise its 737 Max production rate from 38 to 42 aircraft per month after the plane maker met certain milestones for manufacturing and safety.
Boeing noted in its Q3 release that 737 Max production has stabilized at 38 planes per month but has not yet reached the 42 planes per month rate. Ortberg's longer-term goal for 737 Max production is 47 planes per month.
Ortberg said on the call that he sees certification of the 737 Max 7 and Max 9 derivatives occuring sometime in 2026.
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