Boeing reported an annual loss of $11.83 billion in 2024, marking its worst financial performance since 2020.
The US aerospace giant faced mounting challenges, including setbacks in its commercial and defense divisions, as well as the impact of a crippling strike by West Coast factory workers.
CEO Kelly Ortberg, who took charge in August, is under pressure to turn the company around as it continues to lose ground to Airbus in the delivery race.
Boeing also remains under intense scrutiny from regulators and customers due to a string of quality and safety concerns.
Despite the losses, Boeing’s stock saw a slight rise of 0.5% in pre-market trading.
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Cash Burn and Revenue Decline
Boeing reported a quarterly cash burn of $4.1 billion, slightly lower than analysts’ expectations of $4.26 billion, according to data from the London Stock Exchange Group (LSEG).
The company’s quarterly loss stood at $3.86 billion, largely due to overruns in fixed-price defense contracts.
Revenue for Q4 2024 fell by 31% to $15.24 billion, missing expectations of $16.21 billion.
Adjusted loss per share came in at $5.90, well above analysts’ projected $3 per share loss.
Boeing’s total cash burn for 2024 reached $14.3 billion, a stark contrast to the $4.43 billion positive cash flow in 2023.
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CEO’s Strategy for Recovery
Ortberg acknowledged the company’s ongoing struggles but emphasized that progress was being made in stabilizing production lines.
He pointed to a four-part recovery plan, with a key focus on revamping Boeing’s corporate culture, which he described as “perhaps the most important change we need to make.”
The company’s challenges escalated after a mid-air accident in early 2023, which reignited concerns over the safety of its aircraft.
Boeing has since been working to improve supply chain efficiency, reaching an output rate of five 787 jets per month by the end of 2024.
However, issues such as delays in seat production continue to disrupt operations.
Lingering Fallout from 737 Max Crashes
Boeing has struggled financially since 2019, following two fatal crashes of the 737 Max, its best-selling jet. The incidents led to allegations that Boeing misled regulators during the aircraft’s certification process, triggering regulatory probes and quality control issues.
The pandemic further strained the company, and the mid-air panel blowout on a newly delivered 737 Max in January 2024 worsened the crisis. The latest safety scare has added to concerns about Boeing’s manufacturing practices and quality standards.
Defense and Security Business Takes a Hit
Boeing’s defense, space, and security division suffered a $5.41 billion loss in 2024, mainly due to cost overruns on fixed-price contracts.
Ortberg assured employees in a company-wide letter that Boeing has conducted comprehensive reviews of its struggling defense programs. He also reiterated that the company is committed to resolving these issues and restoring stability.
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Can Boeing Bounce Back?
Boeing’s ongoing production and financial struggles highlight the steep road to recovery.
While Ortberg’s leadership aims to address long-standing issues, the company faces regulatory scrutiny, production challenges, and competitive pressure from Airbus.
Investors and industry experts will closely watch Boeing’s progress in 2025 as it attempts to regain stability and rebuild trust in the aerospace market.
