The company’s preliminary financial results are based on management estimates and are subject to finalization upon completion of quarter-end financial and accounting procedures. The information disclosed in this article is based on a press release statement from Boeing, and the actual results may differ when they are completed and publicly disclosed. Boeing’s fourth-quarter results will be officially reported on January 28. Based on current InvestingPro analysis, the stock appears overvalued, with analysts setting price targets ranging from $85 to $250. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of Boeing’s financial health, valuation metrics, and growth prospects, along with 7 additional exclusive ProTips. Based on current InvestingPro analysis, the stock appears overvalued, with analysts setting price targets ranging from $85 to $250. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of Boeing’s financial health, valuation metrics, and growth prospects, along with 7 additional exclusive ProTips.
The financial impacts stem from a work stoppage by the International Association of Machinists (IAM) and subsequent agreement, as well as charges related to certain Defense, Space & Security programs and costs from workforce reductions announced in the previous year. Boeing’s Commercial Airplanes segment is expected to report a revenue of $4.8 billion with an operating margin of (43.9) percent, influenced by lower deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs.
The 777X program specifically faces a pre-tax charge of $0.9 billion due to increased labor costs associated with finalizing the IAM agreement, which will be incurred over the coming years. Despite these setbacks, Boeing still projects the first delivery of the 777-9 aircraft in 2026.
Boeing’s Defense, Space & Security division is also expected to recognize pre-tax earnings charges totaling $1.7 billion on several programs, including the KC-46A tanker and T-7A trainer aircraft, with the KC-46A program alone accounting for $0.8 billion of the charges due to higher manufacturing costs and the impact of the IAM work stoppage. The division forecasts a fourth-quarter revenue of $5.4 billion and an operating margin of (41.9) percent.
Kelly Ortberg, Boeing’s president and CEO, acknowledged the near-term challenges but emphasized steps taken to stabilize the business, such as reaching an agreement with IAM-represented employees and a successful capital raise to improve the company’s balance sheet. Boeing has also resumed production of its 737, 767, and 777/777X aircraft models.
The company’s preliminary financial results are based on management estimates and are subject to finalization upon completion of quarter-end financial and accounting procedures. The information disclosed in this article is based on a press release statement from Boeing, and the actual results may differ when they are completed and publicly disclosed. Boeing’s fourth-quarter results will be officially reported on January 28.
In other recent news, Boeing Co (NYSE:BA). faced a significant decrease in annual deliveries in 2024, reaching a low since the COVID-19 pandemic. The company delivered a total of 348 commercial jets, a sharp drop from the previous year’s 528. Boeing’s new jet orders in 2024 were less than half of what was recorded in 2023. Despite these challenges, Ryanair Holdings (NASDAQ:RYAAY) Plc, the largest European operator of Boeing’s 737 Max, expects the company to regain its competitive edge with the anticipated return of Donald Trump to the White House.
Furthermore, Boeing’s Q4 delivery figures for 2024 revealed a total of 57 commercial airplanes delivered, contributing to the yearly total of 348 aircraft. The 737 model led the deliveries with 36 units in the fourth quarter, rounding up the year with 265 deliveries. Amid these developments, Boeing is currently negotiating a new deal with US prosecutors related to two fatal 737 MAX crashes.
Additionally, AerCap, the world’s largest aircraft leasing company, expressed concerns about potential trade tariffs proposed by U.S. President-elect Donald Trump, which could disrupt Boeing’s cash generation. On a positive note, Barclays (LON:BARC) upgraded Boeing stock from Equalweight to Overweight, expecting sustained positive momentum in production and deliveries throughout 2025. These are the recent developments concerning Boeing Co.
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