Boeing has released its Q4 2024 and full-year financial results, revealing a net loss of $3.8 billion in Q4 and a total loss of $11.8 billion for the year. The company’s revenue significantly declined year-over-year (YoY) due to multiple operational disruptions, including a major machinists’ strike.
Despite these setbacks, Boeing’s leadership remains focused on stabilizing operations and resuming production across key programs. Let’s break down the key highlights from Boeing’s financial performance in 2024.
Financial Performance: A Difficult Year for Boeing
Boeing experienced substantial financial struggles in 2024, with major declines in both revenue and cash flow.
Q4 2024 Financial Results
- Revenue: $15.2 billion (31% decrease YoY)
- Net Loss: $3.8 billion
- Operating Cash Outflow: $3.4 billion (compared to a positive $3.3 billion in Q4 2023)
Full-Year 2024 Results
- Total Revenue: $66.5 billion (14% lower than 2023)
- Net Loss: $11.8 billion (significantly worse than the $2.2 billion loss in 2023)
- Cash Outflow: $12 billion (compared to $5.9 billion positive cash flow in 2023)
These losses reflect the ongoing production challenges, particularly in the Boeing Commercial Aircraft (BCA) division, which was heavily impacted by the International Association of Machinists and Aerospace Workers (IAM) strike that lasted until November 2024.
Boeing’s Efforts to Stabilize Operations
Boeing’s President and CEO, Kelly Ortberg, acknowledged the financial setbacks but emphasized that the company is making progress in stabilizing operations.
“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.”
Impact of the Machinists’ Strike
- Over 33,000 IAM workers went on strike, significantly affecting aircraft production.
- Although the strike ended in November 2024, Boeing delayed restarting production in Washington, prioritizing training and completing work on already assembled aircraft.
- The result was a sharp drop in Q4 deliveries and a backlog of unfinished aircraft.
Commercial Aircraft Division: A Tough Year
Boeing’s Commercial Aircraft (BCA) division suffered the most in 2024, with massive reductions in deliveries and revenue.
Aircraft Deliveries
- Q4 2024: 57 aircraft delivered (compared to 157 in Q4 2023)
- Full-Year 2024: 348 aircraft delivered (down from 528 in 2023)
Revenue & Losses
- Q4 2024 Revenue: $4.7 billion (down from $10.4 billion in Q4 2023)
- Full-Year 2024 Revenue: $22.8 billion (down from $33.9 billion in 2023)
- Q4 2024 Operating Loss: $2 billion
- Full-Year 2024 Operating Loss: $7.9 billion
This contrasts sharply with Q4 2023, when the division was profitable, posting a $41 million operating profit.
Program-Specific Challenges: 737 MAX, 777X & 787
Boeing continued to face production issues across its major commercial programs.
737 MAX
- Production resumed after the strike but remains below pre-strike levels.
- Boeing plans to gradually increase production in 2025.
787 Dreamliner
- The 787 program exited 2024 with a production rate of five per month.
- Expansion plans for South Carolina operations have been announced.
777X Program
- Boeing resumed FAA certification flight testing for the 777X in January 2025.
- The first delivery of the 777-9 remains scheduled for 2026.
- Boeing recorded a $1.1 billion charge on the 777X and 767 programs in Q4, adding to a $3 billion charge in Q3 2024 due to higher labor costs.
Boeing’s Order Backlog: Declining for Commercial Aircraft
Despite some major aircraft orders, Boeing’s commercial aircraft backlog declined in 2024.
- Total Company Backlog (All Divisions):
- End of 2023: $520.1 billion
- End of 2024: $521.3 billion (slight increase)
- Boeing Commercial Aircraft (BCA) Backlog:
- End of 2023: $440.5 billion
- End of 2024: $435.1 billion (decrease)
Major Orders in Q4 2024:
- 204 net aircraft orders, including:
- 100 Boeing 737 MAX 10s for Pegasus Airlines and flydubai
- 30 Boeing 787-9s for flydubai (originally announced in November 2023)
These orders helped offset some losses, but they weren’t enough to prevent a decline in Boeing’s commercial backlog.
A Challenging but Critical Year for Boeing
Boeing’s $11.8 billion loss in 2024 reflects a turbulent year, dominated by:
- The IAM machinists’ strike, which significantly disrupted production.
- Lower-than-expected deliveries, particularly for the 737 MAX, 777X, and 787 programs.
- Rising operational costs, including labor expenses and program charges.
Looking Ahead: Boeing’s Recovery Plan
- 737 MAX production is expected to gradually ramp up in 2025.
- 787 production expansion is planned for South Carolina.
- 777X FAA certification resumed, keeping the first delivery on track for 2026.
- Boeing aims to rebuild customer trust and stabilize operations to improve financial performance.
Despite these efforts, Boeing faces significant challenges in restoring profitability. Investors and industry analysts will closely watch the company’s ability to increase aircraft production, manage costs, and secure new orders in 2025.
