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 significantly missed first-quarter earnings, revenue, and free cash flow expectations, reporting a $1.24 billion loss, double that of the previous year, primarily due to lower defense and commercial volumes.
The company announced a major setback by pausing 777-9 jetliner production until 2025, delaying it by two years and incurring an estimated $1.5 billion in additional costs.
While the global services segment saw a 15% revenue jump, both commercial and defense segments faced declines and substantial charges on fixed-price development programs, leading analysts to question the company's engineering and program management.

See a mistake? Contact us.

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.