Fourth Quarter 2023

• Delivered 157 commercial airplanes and recorded 611 net orders
• 787 production rate at five per month; 737 production rate at 38 per month
• Generated $3.4 billion of operating cash flow and $3.0 billion of free cash flow (non-GAAP)

Full Year 2023

• Delivered 528 commercial airplanes and recorded 1,576 net orders
• Total company backlog grew to $520 billion, including over 5,600 commercial airplanes
• Generated $6.0 billion of operating cash flow and $4.4 billion of free cash flow (non-GAAP)

Table 1. Summary Financial Results						Fourth Quarter																		Full Year
(Dollars in Millions, except per share data)						2023						2022						Change						2023						2022						Change
Revenues						$22,018						$19,980						10 %						$77,794						$66,608						17 %
GAAP
Earnings/(loss) from operations						$283						($345)						NM						($773)						($3,519)						NM
Operating margins						1.3		%				(1.7)		%				NM						(1.0)		%				(5.3)		%				NM
Net loss						($30)						($663)						NM						($2,242)						($5,053)						NM
Loss per share						($0.04)						($1.06)						NM						($3.67)						($8.30)						NM
Operating cash flow						$3,381						$3,457						(2) %						$5,960						$3,512						70 %
Non-GAAP*
Core operating earnings/(loss)						$90						($642)						NM						($1,829)						($4,662)						NM
Core operating margins						0.4		%				(3.2)		%				NM						(2.4)		%				(7.0)		%				NM
Core loss per share						($0.47)						($1.75)						NM						($5.81)						($11.06)						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 $22.0 billion, GAAP loss per share of ($0.04) and core loss per share (non-GAAP)* of ($0.47) (Table 1). Boeing reported operating cash flow of $3.4 billion and free cash flow of $3.0 billion (non-GAAP). Results improved on higher commercial volume and performance.

“While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day,” said Dave Calhoun, Boeing president and chief executive officer. “As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders.”

Table 2. Cash Flow						Fourth Quarter												Full Year
(Millions)						2023						2022						2023						2022
Operating cash flow						$3,381						$3,457						$5,960						$3,512
Less additions to property, plant & equipment						($431)						($326)						($1,527)						($1,222)
Free cash flow*						$2,950						$3,131						$4,433						$2,290

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”

Operating cash flow was $3.4 billion in the quarter reflecting higher volume and favorable receipt timing (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances						Quarter End
(Billions)						Q4 23						Q3 23
Cash						$12.7						$6.8
Marketable securities1						$3.3						$6.6
Total						$16.0						$13.4
Consolidated debt						$52.3						$52.3

1 Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.”

Cash and investments in marketable securities totaled $16.0 billion, compared to $13.4 billion at the beginning of the quarter (Table 3). The company has access to credit facilities of $10.0 billion, which remain undrawn.

Total company backlog at quarter end was $520 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes						Fourth Quarter																		Full Year
(Dollars in Millions)						2023						2022						Change						2023						2022						Change
Deliveries						157						152						3 %						528						480						10 %
Revenues						$10,481						$9,271						13 %						$33,901						$26,026						30 %
Earnings/(loss) from operations						$41						($603)						NM						($1,635)						($2,341)						NM
Operating margins						0.4		%				(6.5)		%				NM						(4.8)		%				(9.0)		%				NM

Commercial Airplanes fourth quarter revenue increased to $10.5 billion driven by higher deliveries and favorable mix (Table 4). Operating margin of 0.4 percent also reflects improved performance and lower abnormal costs.

The company continues to cooperate transparently with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9. Commercial Airplanes is taking immediate actions to strengthen quality on the 737 program, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality. The company has also appointed an outside expert to lead an in-depth independent assessment of Commercial Airplanes’ quality management system, with recommendations provided directly to Calhoun and the Aerospace Safety Committee of Boeing’s Board of Directors.

The 737 program continues to deliver airplanes and its production rate is now at 38 per month. The 787 program production rate is now at five per month.

During the quarter, Commercial Airplanes booked 611 net orders, including 411 737, 98 777X, and 83 787 airplanes, began certification flight testing on the 737-10, and resumed production on the 777X program. Commercial Airplanes delivered 157 airplanes during the quarter and backlog included over 5,600 airplanes valued at $441 billion.

Defense, Space & Security

Table 5. Defense, Space & Security						Fourth Quarter																		Full Year
(Dollars in Millions)						2023						2022						Change						2023						2022						Change
Revenues						$6,746						$6,181						9 %						$24,933						$23,162						8 %
(Loss)/earnings from operations						($101)						$112						NM						($1,764)						($3,544)						NM
Operating margins						(1.5)		%				1.8		%				NM						(7.1)		%				(15.3)		%				NM

Defense, Space & Security fourth quarter revenue was $6.7 billion. Fourth quarter operating margin was (1.5) percent, primarily driven by $139 million of losses on certain fixed-price development programs. Results were also impacted by unfavorable performance and mix on other programs.

During the quarter, Defense, Space & Security captured an award from the U.S. Air Force for 15 KC-46A Tankers, began the U.S. Air Force developmental flight test program for the T-7A Red Hawk, and Canada selected the P-8A Poseidon as its multi-mission aircraft. Backlog at Defense, Space & Security was $59 billion, of which 29 percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services						Fourth Quarter																		Full Year
(Dollars in Millions)						2023						2022						Change						2023						2022						Change
Revenues						$4,849						$4,567						6 %						$19,127						$17,611						9 %
Earnings from operations						$842						$634						33 %						$3,329						$2,727						22 %
Operating margins						17.4		%				13.9		%				3.5 pts						17.4		%				15.5		%				1.9 pts

Global Services fourth quarter revenue of $4.8 billion and operating margin of 17.4 percent reflect higher commercial volume and mix.

During the quarter, Global Services opened its first parts distribution center in India and received a follow-on contract option to provide sustainment for the C-17 Globemaster III.

Additional Financial Information

Table 7. Additional Financial Information						Fourth Quarter												Full Year
(Dollars in Millions)						2023						2022						2023						2022
Revenues
Unallocated items, eliminations and other						($58)						($39)						($167)						($191)
Earnings/(loss) from operations
FAS/CAS service cost adjustment						$193						$297						$1,056						$1,143
Other unallocated items and eliminations						($692)						($785)						($1,759)						($1,504)
Other income, net						$308						$336						$1,227						$1,058
Interest and debt expense						($600)						($640)						($2,459)						($2,561)
Effective tax rate						(233.3)		%				(2.2)		%				(11.8)		%				(0.6)		%

Other unallocated items and eliminations primarily reflects timing of allocations. The fourth quarter effective tax rate primarily reflects tax expense on pre-tax losses driven by an increase in the valuation allowance.