Boeing on Wednesday said it will continue to burn cash this quarter and reported a wider quarterly loss and weaker revenue than analysts expected as both its commercial airplane and defense programs continued to struggle.
Boeing also said it hired more-than-three-decade aerospace industry veteran Robert “Kelly” Ortberg to become its next CEO as the manufacturer tries to regain its footing.
Here’s how Boeing performed in the second quarter compared with estimates compiled by LSEG:
- Loss per share: $2.90 per share adjusted versus $1.97 per share adjusted
- Revenue:Â $16.87 billion versus $17.23 billion
“Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future,” CEO Dave Calhoun said in an earnings release Wednesday. Calhoun said in March that he would step down by the end of the year.
Boeing burned $4.3 billion in cash in the second quarter and CFO Brian West said on the earnings call that because of “near-term working capital pressures, third quarter is expected to be another use of cash.”
Boeing reported a net loss for the second quarter of $1.44 billion, or $2.33 per share, compared with a loss of $149 million, or 25 cents per share, during the year-earlier period. On an adjusted basis, the company reported a loss of $2.90 per share, coming in nearly $1 per share under analyst expectations, according to LSEG.
Revenue for the three months ended June 30 was down 15% to $16.87 billion.
Boeing is trying to stabilize its operations after a door plug blowout from a nearly new 737 Max at the start of the year reignited additional scrutiny from regulators and further slowed deliveries of new, more fuel-efficient jets to airlines.
On Wednesday, Boeing said it still plans to increase output of its Max planes to 38 a month. Analysts said it was producing them in the mid-20s per month the last quarter.
The company’s all-important commercial airplanes unit reported a 32% year-over-year drop in revenue to $6 billion.
Low deliveries and production have pushed back some of Boeing’s financial targets.
West warned in May that the company would continue to burn cash in the second quarter, similar to the first, largely due to lower production and delivery rates than expected.
The manufacturer said it burned through $4.3 billion in cash in the second quarter.
Boeing’s other business units have also faced cost overruns and delays, like its defense unit which is building the two Boeing 747 aircraft that will serve as Air Force One, which are behind schedule.
The company’s defense unit reported a 2% decline in revenue for the second quarter to $6.02 billion. The segment had a loss of $913 million during the period, nearly double the $527 million it lost during the same quarter in 2023. Some of the losses “reflect higher estimated engineering and manufacturing costs, as well as technical challenges,” Boeing said.
The company’s shares were up more than 3% in midday trading.