Boeing's first-quarter loss shrinks but cash flow remains negative, shares fall 2.8%
Boeing's operating cash flow for the first quarter was negative $3.36 billion and free cash flow was negative $3.92 billion, both indicating financial pressure due to reduced commercial aircraft deliveries.
Due to the ongoing impact of the 737 Max crisis, Boeing's first quarter losses narrowed but its cash flow remained negative, leading to a decline in its stock price.
Financial report performance and market response
Boeing suffered a core loss of $1.13 per share in the first quarter, despite exceeding market expectations of a loss of $1.72. However, its revenue of $1.657 billion also showed an 8% decrease compared to last year. The company's operating cash flow was negative 3.36 billion US dollars, and its free cash flow was negative 3.92 billion US dollars, both indicating financial pressure due to reduced commercial aircraft deliveries.
Due to these results, Boeing's stock price briefly rose after the financial report was released, but then fell due to Moody's downgrade of its unsecured debt rating.
Production and safety challenges
In early 2024, the Boeing 737-9 MAX fleet was forced to ground after the Alaska Airlines 737-9 MAX aircraft experienced a door burst incident. This incident intensified the review of Boeing 737 production and safety processes, and reduced overall aircraft production. This also led to the emergence of new whistleblowers with issues in Boeing's 787 Dreamliner production, as well as the eventual resignation of CEO Dave Calhoun.
Order and delivery status
Despite facing challenges, Boeing still secured a total order of 131 aircraft in the first quarter, with a commercial backlog of 5591 aircraft worth approximately $448 billion. In the first quarter, a total of 83 aircraft were delivered, including 67 737 jets, a decrease of 47% compared to the same period last year with 130 aircraft.
Regulatory and market pressures
Last week, Boeing became the focus of attention in two Senate hearings. One hearing investigated Boeing's security practices, while another called on the Department of Justice to further investigate whether Boeing had violated the terms of the deferred prosecution agreement.
In addition, airlines such as United Airlines and Delta Air Lines are seeking to purchase new aircraft from other aircraft manufacturers such as Airbus due to recent issues with Boeing.
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