Executive Summary
In Q1 2025, Boeing reported total revenues of $19.5 billion, marking an 18% increase year-over-year driven by higher commercial delivery volumes amid various operational challenges. The company remains focused on stabilizing its production lines post-recovery and securing its competitive edge, notably with the successful bid for the sixth-generation fighter project, F-47. However, ongoing tariffs and supply chain adjustments present challenges, particularly concerning deliveries to China, which affect revenue projections. Management expressed cautious optimism regarding their recovery plans and efficiency improvements, yet profitability remains pressured with a net income loss of $37 million, yielding negative EPS of -$0.16 for the quarter.
Key Performance Indicators
QoQ: 252.11% | YoY:28.84%
QoQ: 112.23% | YoY:636.05%
Key Insights
**Revenue Performance**: $19.5 billion (+18% YoY, +27.91% QoQ)
**Gross Profit**: $2.417 billion (+28.84% YoY) with a gross profit margin of 12.4%
**Operating Income**: $461 million (+636.05% YoY) reflecting a margin of 2.3%
**Net Income**: -$37 million (compared to a loss of $3865 million in Q4 2024) `Indicating positive momentum despite ongoing challenges.`
**Free Cash Flow**: -$2.3 billion driven by high commercial deliveries and significant working capital needs.
**Balance Sheet He...
Financial Highlights
Revenue Performance: $19.5 billion (+18% YoY, +27.91% QoQ)
Gross Profit: $2.417 billion (+28.84% YoY) with a gross profit margin of 12.4%
Operating Income: $461 million (+636.05% YoY) reflecting a margin of 2.3%
Net Income: -$37 million (compared to a loss of $3865 million in Q4 2024) `Indicating positive momentum despite ongoing challenges.`
Free Cash Flow: -$2.3 billion driven by high commercial deliveries and significant working capital needs.
Balance Sheet Health: Total debt stood at $53.6 billion, with cash and short-term investments totaling $23.7 billion suggesting liquidity challenges against ongoing expenses.
Management highlighted improved performance across production lines, particularly in the BCA segment which embodies the strategic pivot towards stability and efficiency.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
19.50B |
17.67% |
27.91% |
| Gross Profit |
2.42B |
28.84% |
252.11% |
| Operating Income |
461.00M |
636.05% |
112.23% |
| Net Income |
-37.00M |
89.21% |
99.04% |
| EPS |
-0.16 |
70.85% |
97.00% |
Key Financial Ratios
operatingProfitMargin
2.36%
operatingCashFlowPerShare
$-2.14
freeCashFlowPerShare
$-3.04
dividendPayoutRatio
-194.6%
priceEarningsRatio
-868.19
Management Commentary
1. Recovery Strategy & Performance:
CEO Kelly Ortberg stated, "Our recovery plan is showing signs that itβs being effective, albeit early... We delivered 130 airplanes in the quarter, which was better than our internal plan."
2. Production Adjustments:
Ortberg emphasized, "We've seen about a 50% reduction in traveled work and a 25% reduction in rework hours on the 737 line," pointing towards improving factory efficiencies.
3. Market Position & Future Contracts:
Winning the F-47 program was highlighted as a critical milestone: "To be selected has secured our fighter franchise for decades."
4. Navigating Tariff Impacts:
"Input tariffs incurred in the first quarter were immaterial," said Ortberg, although impacts from Chinese tariffs on deliveries remain a key concern.
"Our recovery plan is showing signs that itβs being effective, albeit early, I do like what I'm seeing."
β Kelly Ortberg
"We are currently producing in the low 30s per month and expect that we'll get to the 38 per month cap over the next few months."
β Kelly Ortberg
Forward Guidance
Boeingβs management anticipates continued revenue growth as they ramp production to 38 737 MAX units per month and seek to stabilize the 787 production line at seven per month. The emphasis remains on establishing a secure supply chain while managing tariff implications effectively. Future cash flow guidance remains cautious, with free cash flow expected to turn positive in the second half of 2025, contingent on successful execution of rate increases and stabilization of market conditions. The expected divestiture of portions of the Digital Aviation Solutions business, providing $10.55 billion, is also anticipated to strengthen the balance sheet significantly and focus on core competencies.