Boeing reports mixed Q2 2022 results

• Operating cash flow of $0.1 billion; continue to expect positive free cash flow for 2022
• Increased B737 production to 31 per month; working with FAA on final actions to resume B787 deliveries
• Successfully completed CST-100 Starliner uncrewed Orbital Flight Test-2 (OFT-2)
• Revenue of $16.7 billion; GAAP earnings per share of $0.32 and core (non-GAAP) loss per share of ($0.37)
• Total backlog of $372 billion; including over 4,200 commercial aeroplanes

The Boeing Company reported second-quarter revenue of $16.7 billion, GAAP earnings per share of $0.32 and core loss per share (non-GAAP)* of ($0.37), driven by lower defence volume and unfavourable performance, partially offset by higher commercial volume.

Boeing recorded a positive operating cash flow of $0.1 billion.

“We made important progress across key programs in the second quarter and are building momentum in our turnaround,” said Dave Calhoun, Boeing President and Chief Executive Officer. “As we begin to hit key milestones, we were able to generate positive operating cash flow this quarter and remain on track to achieve positive free cash flow for 2022. While we are making meaningful progress, we have more work ahead. We will stay focused on safety, quality and transparency, as we drive stability, improve performance, and continue to invest in our future.”

Commercial Airplanes second-quarter revenue increased to $6.2 billion, driven by higher 737 deliveries, partially offset by lower 787 deliveries. The operating margin of (3.9)% also reflects abnormal costs and period expenses, including higher R&D expense.

Boeing has nearly completed the global safe return to service of the 737 MAX and the fleet has flown more than 1.5 million total flight hours since late 2020. The 737 production rate increased to 31 aeroplanes per month during the quarter.

On the 787 programme, the company continues to work with the FAA to finalize actions to resume deliveries and is readying aeroplanes for delivery. The programme is producing at a very low rate and will continue to do so until deliveries resume, with an expected gradual return to five per month over time. The company still anticipates 787 abnormal costs of approximately $2 billion, with most being incurred by the end of 2023, including $283 million recorded in the quarter.

Commercial Airplanes secured orders for 169 737 MAX aeroplanes and 13 freighters, including seven 777-8 Freighters from Lufthansa Group. Commercial Airplanes delivered 121 aeroplanes during the quarter and backlog included over 4,200 aeroplanes valued at $297 billion.

ARLINGTON, July 27, 2022