- Generated $3.5 billion of operating cash flow and $3.1 billion of free cash flow (non-GAAP); cash and marketable securities of $17.2 billion
- Certification efforts continue on 737-7 and 737-10
- Delivered 152 commercial airplanes and recorded 376 net orders
Full Year 2022
- Generated $3.5 billion of operating cash flow and $2.3 billion of free cash flow (non-GAAP)
- Delivered 480 commercial airplanes and recorded 808 net orders
- Total company backlog grew to $404 billion; including over 4,500 commercial airplanes
Outlook for 2023
- Reaffirming guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion free cash flow (non-GAAP)
Table 1. Summary Financial Results | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
(Dollars in Millions, except per share data) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||
Revenues | $19,980 | $14,793 | 35 % | $66,608 | $62,286 | 7 % | ||||||||||||||||||||||||||||||||
GAAP | ||||||||||||||||||||||||||||||||||||||
Loss From Operations | ($353) | ($4,171) | NM | ($3,547) | ($2,902) | NM | ||||||||||||||||||||||||||||||||
Operating Margin | (1.8) | % | (28.2) | % | NM | (5.3) | % | (4.7) | % | NM | ||||||||||||||||||||||||||||
Net Loss | ($663) | ($4,164) | NM | ($5,053) | ($4,290) | NM | ||||||||||||||||||||||||||||||||
Loss Per Share | ($1.06) | ($7.02) | NM | ($8.30) | ($7.15) | NM | ||||||||||||||||||||||||||||||||
Operating Cash Flow | $3,457 | $716 | 383 % | $3,512 | ($3,416) | NM | ||||||||||||||||||||||||||||||||
Non-GAAP* | ||||||||||||||||||||||||||||||||||||||
Core Operating Loss | ($650) | ($4,536) | NM | ($4,690) | ($4,075) | NM | ||||||||||||||||||||||||||||||||
Core Operating Margin | (3.3) | % | (30.7) | % | NM | (7.0) | % | (6.5) | % | NM | ||||||||||||||||||||||||||||
Core Loss Per Share | ($1.75) | ($7.69) | NM | ($11.06) | ($9.44) | NM | ||||||||||||||||||||||||||||||||
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures." |
The Boeing Company [NYSE: BA] recorded fourth-quarter revenue of $20.0 billion, GAAP loss per share of ($1.06), and core loss per share (non-GAAP)* of ($1.75)(Table 1). Boeing also generated $3.5 billion of operating cash flow and $3.1 billion of free cash flow (non-GAAP). Results improved on commercial volume and performance.
"We had a solid fourth quarter, and 2022 proved to be an important year in our recovery," said Dave Calhoun, Boeing President and Chief Executive Officer. "Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond. We are investing in our business, innovating and prioritizing safety, quality and transparency in all that we do. While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength."
Table 2. Cash Flow | Fourth Quarter | Full Year | ||||||||||||||||||||||||
(Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Operating Cash Flow | $3,457 | $716 | $3,512 | ($3,416) | ||||||||||||||||||||||
Less Additions to Property, Plant & Equipment | ($326) | ($222) | ($1,222) | ($980) | ||||||||||||||||||||||
Free Cash Flow* | $3,131 | $494 | $2,290 | ($4,396) | ||||||||||||||||||||||
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures." |
Operating cash flow improved to $3.5 billion in the quarter, reflecting higher commercial deliveries and timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances | Quarter-End | |||||||||||||
(Billions) | Q4 22 | Q3 22 | ||||||||||||
Cash | $14.6 | $13.5 | ||||||||||||
Marketable Securities1 | $2.6 | $0.8 | ||||||||||||
Total | $17.2 | $14.3 | ||||||||||||
Consolidated Debt | $57.0 | $57.2 | ||||||||||||
1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments." |
Cash and investments in marketable securities increased to $17.2 billion, compared to $14.3 billion at the beginning of the quarter, primarily driven by cash from operations (Table 3). The company has access to credit facilities of $12.0 billion, which remain undrawn.
Total company backlog at quarter-end was $404 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||
Commercial Airplanes Deliveries | 152 | 99 | 54 % | 480 | 340 | 41 % | ||||||||||||||||||||||||||||||||
Revenues | $9,224 | $4,750 | 94 % | $25,867 | $19,493 | 33 % | ||||||||||||||||||||||||||||||||
Loss from Operations | ($626) | ($4,454) | NM | ($2,370) | ($6,475) | NM | ||||||||||||||||||||||||||||||||
Operating Margin | (6.8) | % | (93.8) | % | NM | (9.2) | % | (33.2) | % | NM | ||||||||||||||||||||||||||||
Commercial Airplanes fourth-quarter revenue increased to $9.2 billion driven by higher 737 and 787 deliveries, partially offset by 787 customer considerations (Table 4). Operating margin of (6.8) percent also reflects abnormal costs and period expenses, including research and development.
The 737 program is stabilizing production rate at 31 per month with plans to ramp production to approximately 50 per month in the 2025/2026 timeframe. Additionally, the 787 program continues at a low production rate with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe.
During the quarter, the company secured net orders for 376 aircraft, including an order from United Airlines for 100 737 MAX and 100 787 airplanes. Commercial Airplanes delivered 152 airplanes during the quarter and backlog included over 4,500 airplanes valued at $330 billion.
Tags: Boeing
