The $10.6 billion sale of Jeppesen covered operating losses in Boeing’s commercial and defense divisions. At the same time, the company continued to increase production of its two most popular jets – the 737 MAX and 787 – and posted positive free cash flow, a metric that investors keep a close eye on.737 MAX. PRODUCT REACH REACHES 42 PER MONTH
Boeing ended the year with 737 MAX production of 42 aircraft per month and is in the process of increasing the number of 787 aircraft to eight per month. The company plans to increase MAX production to 47 per month and 787 production to 10 per month this year.
The aircraft maker posted a net profit of $8.22 billion, or $10.23 per share, for the quarter through December, compared with a loss of $3.86 billion, or $5.46 per share, a year earlier.
On an adjusted basis, including the sale of Jeppesen, Boeing posted a quarterly profit of 32 cents per share, compared with expectations for a loss of 39 cents per share. Analysts did not expect Boeing’s sales to be included in the results. Despite the production improvements, Boeing’s commercial aircraft unit posted a quarterly loss of $632 million. Boeing’s defense and aerospace unit lost $507 million. In a CNBC interview Tuesday, Boeing CEO Kelly Ortberg said he expects the KC-46 attack to be a one-time event.
The company’s shares fell about 2.5% in early trading, likely due in part to higher-than-expected losses in the two units, Deutsche Bank analyst Scott Deuschle wrote in a note. The quarterly results included the sale of Jeppesen, which was part of Boeing’s services division, to Thoma Bravo and the reacquisition of Spirit AeroSystems for $4.7 billion in stock. Boeing paid down Spirit’s debt by more than $3 billion, resulting in a net profit of about $7.6 billion.
Boeing’s services unit posted nearly $1 billion in profits after closing the Jeppesen sale, Jefferies aviation investment analyst Sheila Kahyaoglu wrote in a research note.
The company did not make any financial forecasts for 2026. In December, Chief Financial Officer Jay Malave said he expects positive free cash flow of more than $1 billion this year. Company executives have said their goal is $10 billion a year, but they have not given a timeline.
MOST DELIVERIES SINCE 2018 Across all jet programs, the company delivered 600 planes last year, the most since 2018. In the intervening years, Boeing has been buffeted by the 737 MAX scandal, the pandemic, supply chain bottlenecks, a mid-air accident that exposed systemic quality and safety problems, and labor issues.
The company expects to increase jet deliveries this year.
“With progress comes expectations, and our customers and stakeholders will expect more from us this year,” Ortberg said in a memo to employees on Tuesday. “And we can expect more from each other.”
He said the company must certify the 737-7, 737-10 and 777X and move forward on fixed-cost defense and aerospace programs that are behind schedule and have cost Boeing billions.
Boeing took in $375 million in cash in the fourth quarter but still burned $1.9 billion in cash this year, partly due to continued delays in certification of the 737 MAX and 777X programs.
Boeing’s fourth-quarter revenue rose 57% to $23.95 billion, compared with expectations of about $22.6 billion, according to data compiled by LSEG.
#Boeing #swings #quarterly #profit #asset #sales #shares #fall #unit #losses