Boeing Endures Another Tough Quarter

Mounting losses and delays create big challenges for the company through the first part of 2022.

Michael Wildes

Wednesday, April 27, 2022 at 04:50 PM ET

Verified

Boeing CEO Dave Calhoun remains optimistic about his company's future. [File photo: Shutterstock]

Key Takeaways:

Boeing reported a significant miss on Q1 earnings, revenue, and free cash flow expectations, incurring a $1.24 billion loss and an 8.1% year-over-year revenue drop.
The company announced a costly delay in 777-9 jetliner production until 2025, estimating an additional $1.5 billion in expenses.
While its Global Services segment saw a 15% revenue increase, both Commercial and Defense, Space & Security segments experienced revenue declines and significant charges on programs like the VC-25B and T-7A Red Hawk.
Despite CEO optimism, analysts questioned the company's repeated program issues, leading to an 8% drop in share price and a 17-month low.

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Boeing (NYSE: BA) announced in its first-quarter earnings call Wednesday that it missed earnings expectations on multiple levels. Losses were more significant than expected and the company failed to achieve revenue projections and free cash flow expectations due to lower defense and commercial volumes, though the company said those challenges were partially offset by global services.

For the quarter, the company lost $1.24 billion, twice as much as the company lost during the first quarter of 2021. Revenue also decreased to $13.9 billion, an 8.1 percent year-over-year drop, despite analysts’ expectation of $16.02 billion.