BA Financial Analysis

Analysis Date: 1/29/2025

Business Model

Boeing generates revenue primarily through commercial aircraft sales, defense/space contracts, and aftermarket services

Revenue Sources

• Commercial Airplanes: $22.9B (34% of FY2024 revenue)
• Defense, Space & Security: $23.9B (36% of FY2024 revenue)
• Global Services: $20.0B (30% of FY2024 revenue)

Revenue Distribution by Channel

• Commercial aircraft deliveries: 348 aircraft in 2024

Income Statement Analysis

• Revenue declined 31% year-over-year due to lower commercial deliveries and IAM work stoppage
• Operating margin deteriorated to -24.7% from +1.3% due to charges and lower volume
• Net loss widened significantly due to operational challenges and special charges

Balance Sheet Analysis

• Cash position strengthened significantly due to $24B capital raise
• Total debt reduced to $53.9B from $57.7B in Q3 2024

Cash Flow Analysis

• Operating cash flow turned negative due to lower deliveries and working capital timing
• Free cash flow impacted by operational challenges and capital expenditures

Capital Allocation

Company focused on preserving liquidity with $24B capital raise including equity and convertible preferred stock. Debt reduced by $3.8B in Q4. Maintaining $10B undrawn credit facilities.

Management Commentary

Focused on stabilizing operations and improving execution

Making fundamental changes to culture and safety/quality processes

Operational challenges continue to impact financial performance

Overall Sentiment: Cautious but focused on operational improvement and cultural transformation

Recommendation

Rating: Hold

Reason for Rating: Significant operational challenges balanced against strong backlog and liquidity position

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/29/2025, 7:37:01 AM