Airplane manufacturer Boeing (BA) has dived to an annual loss of $11.83 billion – its sixth consecutive yearly plunge into the red – and its largest since 2020.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
The loss, wider than the $2.2 billion it reported this time last year, was blamed by chief executive Kelly Ortberg on problems in its commercial and defense units, and an almost two-month strike by machinists in the West Coast which cut production and lengthened delivery delays to customers.
Boeing Faces Cost Turbulence
Boeing lost $3.86 billion in the last three months of 2024, taking a $3 billion hit in charges in its commercial aircraft unit and its defense and space business. That was down to the costly strike, job cuts and issues with a number of government programs including a military refueling tanker and Air Force One replacement jets.
Its loss per share for the fourth quarter came in at $5.90, worse than the expected $3.00 and its revenue of $15.24 billion for the quarter was down on the expected $16.21 billion.
Its shares were flat in pre-market.
Boeing is no Stranger to Headwinds
The iconic Seattle-based manufacturer has had a turbulent last few years battered by the grounding of its best-selling plane, the 737 Max, after two fatal crashes, as well as the Covid-19 pandemic, manufacturing defects and cost overruns.
It is also trailing European rival Airbus in production numbers. Boeing recently revealed that it had received no 737 Max orders for around two months and was far behind Airbus (EADSY) in total net orders for commercial planes.
CEO Sees Sunnier Skies Ahead
Ortberg, who stepped into the CEO cockpit last July, however said the company had made progress returning to an output rate of five 787 jets per month at the end of 2024. Its commercial airplanes arm delivered 57 airplanes during the quarter with a backlog of over 5,500 airplanes valued at $435 billion.
In addition in January, the 777X program resumed FAA certification flight testing, and the company still anticipates first delivery of the 777-9 in 2026.
“We made progress on key areas to stabilize our operations during the quarter and continued to strengthen important aspects of our safety and quality plan,” said Ortberg. “My team and I are focused on making the fundamental changes needed to fully recover our company’s performance and restore trust with our customers, employees, suppliers, investors, regulators and all others who are counting on us.”
Is BA a Good Stock to Buy Now?
On TipRanks, BA has a Moderate Buy consensus, based on 12 Buy, 6 Hold and 1 Sell rating. Its highest price target is $240. BA’s stock consensus is $190.50 implying an 8.76% upside.
