ARLINGTON, Va. – The Boeing Company (NYSE:BA) [NYSE: BA] has announced its financial results for the fourth quarter and full year of 2023, showing a narrowed net loss and improved revenue. The aerospace giant reported a fourth-quarter revenue of $22 billion, a 10% increase from the previous year, and a net loss of $30 million, significantly less than the $663 million loss in the same period in 2022.
For the full year, Boeing delivered 528 commercial airplanes and logged 1,576 net orders, with the total company backlog growing to $520 billion, including over 5,600 commercial airplanes. The company generated $6 billion in operating cash flow and $4.4 billion in free cash flow, a non-GAAP measure.
Boeing's Commercial Airplanes segment saw a revenue increase to $10.5 billion in the fourth quarter, driven by higher deliveries and favorable mix. The segment's operating margin stood at 0.4%, reflecting improved performance and lower abnormal costs. The 737 program's production rate is now at 38 per month, while the 787 program is at five per month.
The Defense, Space & Security segment reported a fourth-quarter revenue of $6.7 billion, with an operating margin of (1.5) percent, mainly due to losses on fixed-price development programs and unfavorable performance on other programs.
Boeing's Global Services segment posted a revenue of $4.8 billion for the quarter, with an operating margin of 17.4%, indicative of higher commercial volume and mix.
The company's cash and investments in marketable securities totaled $16 billion at the end of the quarter, an increase from $13.4 billion at the beginning of the quarter. Boeing also has access to credit facilities of $10 billion, which remain undrawn.
Boeing President and CEO Dave Calhoun emphasized the company's commitment to quality, mentioning actions taken to strengthen the 737 program, including additional inspections and a one-day production pause to refocus on quality. An independent assessment of the Commercial Airplanes' quality management system is also underway.
InvestingPro Insights
As Boeing [NYSE: BA] charts its path to recovery, real-time data from InvestingPro provides a nuanced perspective on the company's financial health and stock performance. With a market capitalization of $121.26 billion, Boeing's presence in the aerospace sector is substantial, although it is currently trading at a high EBITDA valuation multiple, reflecting investor expectations for future growth. Despite the challenges, two InvestingPro Tips suggest that Boeing remains a prominent player in the Aerospace & Defense industry, with analysts revising their earnings upwards for the upcoming period, signaling potential confidence in the company's direction.
Boeing's revenue growth over the last twelve months has been impressive at 23.34%, indicating a strong demand for its products and services. However, with a negative P/E ratio of -42.63 and an adjusted P/E ratio for the last twelve months as of Q3 2023 of -94.01, the company's profitability is a concern for investors, as reflected in the tip that analysts do not anticipate the company will be profitable this year. Moreover, the stock has experienced significant volatility, including a price total return of -23.1% year-to-date as of the end of 2023.
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