The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industry included in sector is aerospace and defense.

Fortune Sector Leaders: Aerospace and Defense

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

World's Most Admired Companies

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The 300 companies on this list are transforming industries from the inside out.

America's Most Innovative Companies

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-058-Boeing

One of the country’s largest aerospace and defense manufacturers saw a 7% increase in revenue in 2022, a steady gain as it looks to recover from a drop in revenue in 2019 and 2020 due to the pandemic and widespread groundings of Boeing 737 MAXs. 
<ul> 
 	<li>Order backlog for the company’s commercial airplanes grew in 2022 to $330 billion, from $297 billion a year earlier, partially reflecting increased demand as domestic and international travel rebounded.</li> 
 	<li>Supply-chain and quality-control issues in 2022 and 2023 have bedeviled Boeing, including the recent halt of some 737 MAX deliveries due to fuselage deficiencies.</li> 
 	<li>The aerospace and defense manufacturer is reconfiguring its workforce of 156,000 in 2023, planning to cut 2,000 jobs in its finance and human resources departments while intending to hire 10,000 new employees with a focus on tech and manufacturing.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

F500-2022-Boeing

Aerospace and defense manufacturer Boeing had a strong 2021 overall, with revenue for the year growing by 7% amid a surge in sales. Boeing delivered 340 jetliners in 2021, more than double its sales numbers from 2020, spearheaded by the long-awaited return of the 737 Max airplane that was grounded in 2019, along with the revival of air travel as the pandemic eased. But the company has faced further challenges in 2022 in the wake of the Russian invasion of Ukraine, as the war raised costs and delayed shipments for key manufacturing parts. Investors have also reacted poorly to ongoing delays in the development of Boeing’s 777-9 civilian wide-body jet, and to cost overruns in its contract to build new Air Force One aircraft for the White House.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-173-Boeing

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Boeing investors’ modest hope is that nothing terrible happens for a while. Crashes of 737 Max aircraft in 2018 and 2019, killing 346, exposed design flaws and grounded the model worldwide for more than a year. Then, as the plane gradually reentered service in early 2020, the pandemic virtually halted global air travel. With travel resuming in the spring of 2021, electrical problems with the 737 Max grounded about 100 of the planes, and Boeing “paused” deliveries. In the midst of it all—late 2019—the board of directors ousted CEO Dennis Muilenburg and gave the job to nonexecutive board chairman Dave Calhoun, who’s focused on stabilizing the company and getting it back on a growth trajectory. With his 65th birthday approaching in 2022, the board extended his retirement age to 70.&quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:11}">Boeing investors’ modest hope is that nothing terrible happens for a while. Crashes of 737 Max aircraft in 2018 and 2019, killing 346, exposed design flaws and grounded the model worldwide for more than a year. Then, as the plane gradually reentered service in early 2020, the pandemic virtually halted global air travel. With travel resuming in the spring of 2021, electrical problems with the 737 Max grounded about 100 of the planes, and Boeing “paused” deliveries. In the midst of it all—late 2019—the board of directors ousted CEO Dennis Muilenburg and gave the job to nonexecutive board chairman Dave Calhoun, who’s focused on stabilizing the company and getting it back on a growth trajectory. With his 65th birthday approaching in 2022, the board extended his retirement age to 70.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-54-Boeing

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-121-Boeing

Boeing spent 2019 trying, to little avail, to recover from two disastrous crashes of its 737 MAX jet, which killed 346 people. Airlines canceled orders, Congressional committees called hearings, projected dates for the plane’s return to service kept getting pushed back, and the company lost $1 billion. The board lost patience with CEO Dennis Muilenberg and fired him at the end of the year. Board chairman David Calhoun took over as CEO in early January, just in time to face the coronavirus pandemic, which virtually halted travel worldwide and will be an even bigger challenge for Boeing long-term than the grounding of the 737 MAX.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-040-Boeing

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Sector

Culture rank

Process rank

Product rank

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Boeing, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, plus human spaceflight and launch systems worldwide. The company operates through its commercial airplanes; defense, space, and security; and global services segments. In recent years, safety concerns and labor disputes have plagued the company, which was once lauded for its engineering-first culture. Boeing was incorporated in 1916. After a long history outside Seattle, in 2001 it moved its headquarters to Chicago to be closer to customers. It ultimately moved again to Arlington, Va., where it’s presently headquartered.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Boeing (BA): Company Profile, Stock Price, News, Rankings

legacy

Boeing

boeing

Thank you for standing by. Good day, everyone, and welcome to the Boeing Company's Fourth Quarter twenty twenty four Earnings Conference Call. Today's call is being recorded. The management discussion in the slide presentation, plus the analyst question and answer session are being broadcast live over the Internet. To ask a question on today's conference, please press the digit 1 followed by the digit 0 on your touch tone telephone.

Again, it's 1 for questions. After pressing 10, you will hear that you have been placed in queue. At this time, for opening remarks and introductions, I'm turning the call over to Mr. Matt Welch, Vice President of Investor Relations for The Boeing Company. Mr.

Thank you, and good morning. Welcome to Boeing's quarterly earnings call. I am Matt Welch, and with me today are Kelly Ortberg, Boeing's President and Chief Executive Officer and Brian West, Boeing's Executive Vice President and Chief Financial Officer. And as a reminder, you can follow today's broadcast and slide presentation at boeing.com. Projections, estimates and goals included in today's discussion involve risks, including those described in our SEC filings and in the forward looking statement disclaimer at the beginning of the presentation.

We also refer you to the disclosures relating to non GAAP measures in our earnings release and presentation. Now, I will turn the call over to Kelly Ortberg.

Thanks, Matt, and thanks to everyone for joining today's call. Before I get into the earnings, let me first offer our thoughts and deepest condolences for the families and loved ones of those onboard Jeju Air Flight two thousand two hundred and sixteen. We continue to support the airline and the U. S. National Transportation Safety Board as they assist the South Korean authorities in the accident investigation.

Now turning to the earnings. During the last call, I highlighted 4 areas critical to our recovery. And as the new year begins, we're making steady progress in all 4 areas. The first area, stabilizing the business. Following the resolution of the I'm strike, our commercial team has been executing a methodical plan to restart our factories within the framework of our safety management system.

This included ensuring all manufacturing employees were current on their training and certifications prior to returning to work on the factory floor. We took time to rebalance the production line so that when we started up, we did so with a healthy production system. People are back to work and excited about the task ahead and you can see the energy when you're on the factory floor. For the seven thirty seven MAX, we have sufficient parts inventory to enable producing at 38 a month, including fuselages, which were a pacing item prior to the strike. And all 3 of the production lines in Renton are now cycling.

In the past quarter, we completed our safety management meeting with the FAA in which they reviewed our safety management system and our production status, including spending time on the factory floor. They reported that they saw significant improvements, and I'm pleased that we have an agreed upon path for rate increases beyond 38 per month. It's all about adhering to our safety management system and a stable factory as measured through agreed upon key performance indicators or KPIs. It's in early innings on the production ramp and we need to stay disciplined on maintaining a stable production system, but early signs are encouraging. The best news is that our customers are reporting that they are encouraged with what they're seeing as they monitor our production.

Progress on the seven eighty seven also continues and we finished last year at a production rate of 5 per month. Like the 737, we are working to ensure the 787 production system, including the supply chain, is stable prior to making the next rate increase. An important accomplishment to stabilize the business was to shore up our balance sheet. We are committed to recovering the business while maintaining an investment grade credit rating and delivering for our shareowners. I think the demand for our offering last year speaks volumes about the market's confidence in our recovery.

We're working across the supply chain, including the sub tiers, to ensure readiness and stability with our production rates. Notably, supplier part shortages across all of our commercial programs are within their established control limits. We have instituted dedicated sessions with suppliers to provide insights as well as to promote 2 way communication to stay aligned as we operate together as 1 extended production system. The second element of our recovery is to improve performance on our development programs. While the charges for the quarter in BDS are disappointing, I have had the opportunity to complete deep dive EAC reviews on all the troubled programs.

We are very focused on creating stability within the EACs so we stop this quarterly drumbeat of cost growth. This means being more proactive and clear eyed on the risks and our estimates to complete the projects. While I know it doesn't show in this past quarter's performance, we're making progress in working with our customers to actively manage the contracts to achieve better outcomes for both parties. You've seen that we've entered into an MOA with the U. S.

Air Force on the T-7A program and we're in active discussions on a second MOA on that program, all focused on improving the performance of the program. We're also in active discussions with our customer on the BC-25B program to make the necessary changes to improve the program performance and delivery. The U. S. Air Force has turned this as an active management, which is a term I really like.

We're focused on actively managing all of our problematic programs to improve the performance for the company and our customers. While I said there's no silver bullet on these fixed price programs, I do feel better about our ability to better manage the performance in 2025. On the commercial side, we continue to focus on getting the seven thirty seven-seven and -ten as well as the 777X through certification. There are no updates to the timelines we previously communicated on these programs. On the -seven and -ten, we're still working through the testing phase focused on finalizing the icing design solution, which we plan to include in the certification program.

Working closely with the FAA, especially in light of their leadership changes, will be a key focus area for us this year. The 777X is back in flight test and we have a good handle on fixing the thrust link issue we uncovered. Now moving to the third area, culture change. This will be a multiyear journey, but we're already making progress. Our leaders are getting more engaged with their teams and customers.

We're having the frank discussions about what we need to change. In 2025, we'll be re baselining our core values and behaviors to make our expectations perfectly clear to all our Boeing teammates. These will be incorporated into our leadership development program and become fundamental elements of our performance management system. Leadership promotions will be grounded not only in what we get done, but how we get things done. We're going to help focus the teams on what it takes to make Boeing successful and promote a culture of unity and accountability by implementing a single enterprise score for all of our annual incentive plans.

As I talk with employees, there's a growing swell of excitement around restoring trust and getting their Boeing back, and they want to be a part of this turnaround. So the last area is building a new future for Boeing. While workforce reductions are always difficult, I'm pleased that we have been able to reduce layers of management and redundant overheads in our system. This will serve us well as we establish a less bureaucratic, more focused and agile operating environment for our future. We're preparing for the road ahead by continuing to make important investments in our core business while streamlining our portfolio in areas that aren't core to us.

So let me wrap up by saying that the markets we serve are robust and growing. Demand for our core commercial and defense products and services remains strong, our backlog of more than $50,000,000,000,0.0 clearly demonstrates the value of our portfolio, and we're focused on meeting our commitments and delivering safe, high quality products to our customers. I do want to acknowledge and thank the incredibly talented employees at Boeing. Your resiliency and commitment gives me confidence in our path forward. It's going to take all of us working together.

Next, let me turn it over to Brian to cover the operating results. And after that, we'll be happy to take your questions. So Brian, over to you.

Thanks, Kelly, and good morning, everyone. Let's start with the total company financial performance for the quarter. Revenue was $1,520,000,000,0.0 down 31%, primarily driven by lower commercial deliveries associated with the I'm works stoppage. The core loss per share was $5.9 primarily reflecting previously announced impacts of the I'm works stoppage and agreement, charges on certain defense programs as well as costs associated with workforce reductions announced last year. Free cash flow was a usage of $410,000,000,0.0 in the quarter, in line with the expectations shared at our last earnings call.

Results were impacted by lower commercial deliveries and unfavorable working capital timing, primarily driven by the I'm work stoppage. Turning to the next page, I'll cover Boeing commercial airplanes. BCA delivered 57 airplanes in the quarter. Revenue was $480,000,000,0.0 and operating margin was minus 43.9%, primarily reflecting previously announced impacts from the IAM work stoppage and agreement including pre tax charges of $110,000,000,0.0 on the 777X and seven sixty seven programs. Backlog in the quarter ended at $4.35,000,000,000 dollars and includes more than 5500 airplanes.

Now I'll give more color on the key programs. The seven thirty seven program delivered 36 airplanes in including a step up to 18 in Dec. 0. And as of yesterday, we've delivered 33 airplanes in Jan. 0 with four days to go.

On production, we restarted the factory in Dec. 0 and plan to gradually increase rate. We expect to be in a position to go above 38 per month later in the year. All 3 lines in our rent and factory recycling and monthly production is already in the low to mid-20s for Jan. 0.

More broadly on the master schedule, we continue to make adjustments as needed and manage supplier by supplier based on inventory levels. Over the past year, our buffer inventory has grown to promote stability across our production system. As production stabilizes and rates increase over time, we plan to deliberately return buffer inventory to more normal levels. The quarter ended with 55730 seven-8s built prior to 2023. The majority for customers in China and India, down 5 from with about another 10 already delivered in Jan.

0. Given the impact of the strike, we now expect to shut down the Shadow factory mid year and deliver all of the remaining airplanes to customers within the year. On the -seven-ten inventory levels were stable at approximately 35 airplanes and testing on the anti icing design solution is ongoing with certification expected to follow later in the year. On the seven eighty seven program, we delivered 15 airplanes in the quarter as we made progress on working through production recovery plans for heat exchangers and delivery delays associated with seat certifications. The program exited the year at a production rate of 5 per month and we recently announced plans to expand South Carolina operations as we prepared for anticipated future need of the commercial market.

We are intent on ensuring the production system and the supply chain demonstrate stability prior to making the next increase on rates sometime this year. We ended the quarter with 25 airplanes in inventory built prior to 2023 that require rework, down 5 from last quarter. Our ability to finish the rework and shut down the Shadow factory was also impacted by the work stoppage and we expect to complete this work in Finally, on 777X, as previously announced, the $900,000,000 pre tax charge primarily reflects higher estimated labor costs associated with finalizing the I'm agreement and will be incurred over the next several years. Flight testing recently resumed and we still expect first delivery in 2026 and will continue to follow the lead of the FAA as we move through certification. 777x inventory spend in 2024 finished at $260,000,000,0.0 as 4Q spending levels moderated due to the work stoppage.

As noted previously, we expect the cash profile to look similar to prior development programs with first year prior to first delivery typically the largest use of cash driven by inventory build associated with the production ramp, which will unwind as deliveries accelerate. Moving on to the next page in Boeing Defense and Space. BDS booked $8,000,000,000 in orders during the quarter, including awards for 15 KC-46A tankers

S. Air Force and 7 P-8A aircraft for the U. S. Navy and the backlog ended at $64,000,000,000 Revenue was $540,000,000,0.0 down 20% year over year on volume and program charges and operating margin was minus 41.9% BDS delivered 34 aircraft and 2 satellites in the quarter, including the final T-7A EMD aircraft to the U. S.

Air Force. The 15% of the portfolio comprised of fixed price development programs recorded a $170,000,000,0.0 pre tax charge as previously announced. The fixed price development cost pressures were driven by the KC-46A and T7A programs with KC-forty 6 primarily reflecting higher estimated manufacturing costs including the impacts of the I'm work stoppage agreement and T7 driven by higher estimated production costs on contracts in 2026 and beyond. Roughly one third of these new charges will work through the cash flows in the next few years with remainder spread over the coming decade. Given the fixed price nature of these contracts, we'll continue to be transparent about impacts as we work to stabilize and mature these programs.

We acknowledge that these are disappointing results. These are complicated development programs and we remain focused on retiring risk each quarter and ultimately delivering these mission critical capabilities to our customers. As Kelly shared, we continue to make progress in including key order and delivery milestones already noted. Importantly, the updated acquisition approach for the T7A is a proof point for how we are working with our customers to find better overall outcomes for both parties. And those efforts will continue as we work through other parts of the portfolio.

On the 25% of the portfolio primarily comprised of fighter satellite programs. Our fighter programs again recognized losses in due to disruptions associated with the F-15EX ramp up and the F-eighteen production wind down. We also recognize impacts across satellites and a few other legacy platforms tied to development realities as we work to refresh the capabilities of these platforms to support our customer needs. The remaining 60% of revenues of the portfolio are generally performing in the mid to high single digit margin range. Although the P8 commercial derivative program experienced margin compression in the due to the I'm work stoppage and agreement.

While still more work in front of us, we continue to be confident that BDS margins can improve to high single digit levels in the medium to longer term. The demand for our defense products remains very strong supported by the threat environment confronting our nation and our allies. We still expect the business to return to historical performance levels as we stabilize production, execute on development programs and transition to new contracts with tighter underwriting standards. Moving on to the next page, Boeing Global Services. BGS continued to perform well delivering record operating margins in the quarter.

The business received $6,000,000,000 in orders and the backlog ended at $21,000,000,000 Revenue was $510,000,000,0.0 up 6% primarily on higher commercial volume. Operating margin was a record 19.5% in the quarter, up two ten basis points compared to last year with both our commercial and government businesses delivering double digit margins. In the quarter, BGS secured awards for C-seventeen sustainment as well as a contract for F-fifteen Japan super interceptor upgrade and services from the U. S. Air Force.

BGS is a terrific long term franchise focused on profitable capital efficient service offerings and executing well with mid single digit revenue growth, mid teen margins and very high cash flow conversion. Turning to the next page, I'll cover cash and debt. On cash and marketable securities, we ended the quarter at $2,630,000,000,0.0 primarily reflecting the successful $24,000,000,000 capital raise in Oct. 0, partially offset by the free cash flow usage and debt repayment. The debt balance ended at $5,390,000,000,0.0 down $380,000,000,0.0 in the quarter driven by the early repayment of a $350,000,000,0.0 bond originally set to mature in 2025.

Importantly, this prepayment derisks our 2025 maturity profile resulting in $800,000,000 of debt maturities remaining in the year. The company maintains access to $10,000,000,000 of revolving credit facilities, all of which remain undrawn. We remain committed to managing the balance sheet in a prudent manner with 2 main objectives. First, continue to prioritize the investment grade rating and second, allow the factory and supply chain to reset. We will continue to evaluate opportunities to further supplement the balance sheet as we make certain portfolio decisions through the course of the year.

Turning to the next page, I'll cover the total financial company results for the full year. Full year revenue was $6,650,000,000,0.0 down 14% year over year driven by lower commercial deliveries including impacts of the IAM works stoppage. The core loss per share was $20,.38 down from prior year primarily on lower deliveries and commercial and defense program charges including impacts of the I'm work stoppage and agreement. Free cash flow was $1,430,000,000,0.0 used for the year, down versus prior year on commercial deliveries and unfavorable working capital timing including the impact of the work stoppage. Stepping back, let me provide some additional context on 2025 free cash flow.

2025 will be an important year in our recovery and while we still expect it to be a use of cash, we anticipate a significant improvement over 2024. Within 2025, we expect free cash flow will be a usage and similar to driven by continued working capital headwinds as we ramp production as well as normal seasonality. We still expect the first half to be a use of cash with the second half turning positive and accelerating as we exit 2025. Investments stepped up last year and could increase by approximately $500,000,000 in 2025 to support planned growth across both the commercial and defense businesses. Importantly, we expect to exit the year with real momentum in the business as we return to normal production rates.

This outlook will be underwritten by a few critical factors. Increasing seven thirty seven production rates through the year. Moving seven eighty seven steadily towards its long term production rates. Liquidating our legacy seven thirty seven and seven eighty seven inventory and shutting down both shadow factories strategically investing in the business, including the 777X production ramp and CapEx to support planned growth across the portfolio improving our defense business as we continue to mature the fixed price development programs and work to transition recently challenged programs with our renewed focus on disciplined program management and stabilizing the business And finally, continuing to demonstrate strong performance across our services business. Broadly, the markets we serve continue to be significant and our backlog of more than $50,000,000,000,0.0 demonstrates that our product portfolio is positioned to win.

Long term, these fundamentals underpin our confidence as we continue to manage the business with a long term view built on safety, quality and delivering for our customers. With that, let's open it up for questions.

Thank you. In order that your question be heard clearly heard, we ask that you not use a speakerphone, cell phone or phone headset. Please use your handset to ask a question. As a reminder, And our first question is from the line of David Strauss from Barclays. Please go ahead.

Kelly, I wanted to ask how you viewed the restart on Mac, how that's gone? You mentioned some of the you mentioned KPPs that you have with the or KPIs that you have with the FAA. Can you maybe elaborate on what exactly those are outflows you already hitting? What's necessary to get to go above 30 a month? And then Brian, can you just give us an idea of what to expect for all in MAX and seven eighty seven deliveries in 2025?

Yes, David. So let me talk about the production startup on MAX. So as you know, we came out of the strike and didn't actually jump right on building aircraft. We spent time training the workforce, getting them all up to speed, but also really as I said balancing the line which is really important, starting the line up in a stable manner.

And it already is paying dividends. We're seeing the production process come back very well and I feel pretty good about where we are right now with the production rate. Remember that we've got a significant amount of inventory both in airplanes and in supply parts. So I don't see any constraints right now from the supply chain for us in ramping up the $7.37 to the 38 a month rate. And notably the work at Spirit has during the strike has really paid off.

That team has done a great job of improving the overall performance and quality of the fuselages which are going to help flow through the factory. So as I said it's early days, but I feel really good and I think our deliberate plan is going to pay dividends for us going forward.

David, a little bit on how to think about seven thirty seven deliveries for the year. We're not putting out formal guidance, a little too early for that. But let's just talk about a framework for the year. So Jan. 0 is off to a very solid start and delivery should be in the high 30s for the month.

Now keep in mind, some of these airplanes are the benefit of clearing the delivery center ramp that had accumulated in the Nov. 0 and Dec. 0 timeframe. So there's an advantage of a nice tailwind entering the year. We expect Feb.

0 will be lighter because there's fewer manufacturing days and also the timing of the factory restart. And then March 0 is likely to be better than Feb. 0 as we begin to get more predictability. So as we've said, the first half is going to reflect our gradual steady restart of the factory and the second half is likely going to benefit from achieving higher production rates, which include the 38 per month target and possibly higher based on approval from the FAA as Kelly mentioned. So, as we sit here today, we've got a lot of work in front of us.

Hey, David, let me come back also and talk about the 6 KPIs that you asked about. So, these are KPIs that we've agreed with the FAA on what the threshold is and where the control limits we want to operate. And these are what we've collectively determined will measure the stability of our production system. I'll quickly tell you what the 6 are.

They are NOE, notice of escape hours, shortages, part shortages, employee proficiency, rework by line, travel to work at rollout and ticketing performance. And so I will say it's a little bit early because we have a lot of inventory yet of planes that we're in process that we're going through. But early indications is that all the KPIs are looking and trending in the right direction. So I feel so far so good, but it will be important to see and continue to measure these KPIs as we continue to ramp up. And remember, we need to get to 38 and show stability at 38 with these KPIs and we won't go to the FAA for a rate increase.

We won't request 1 if we don't see these KPIs performing the way that we want to. And so I think we've got a disciplined approach. As I said in my remarks, I'm pleased that it's pretty well grounded in facts and data. So there's no subjectivity here as far as what it's going to take, but we got to perform and Stephanie and the team are clearly focused on performing to these KPIs.

Thank you. And the next question is from Peter Hermet from Baird. Please go ahead.

Yes. Good morning, Kelly and Brian. Hey, Brian, maybe if you could walk us through a little bit on the free cash flow dynamics for 2025. I know you called out a few things, some of the moving parts, but just thinking about working capital headwinds or 777X spend or BDS losses, we've been estimating about a $5,000,000,000 outflow this year. I think it's a little above the consensus of $4,000,000,000.

Anything to highlight that you could help us maybe that potentially could be reduced that outflow or how are you thinking? I know you gave us the first half versus second half dynamics, but anything else that you could provide more color on? Thanks.

Peter. So 2025 free cash flow is largely going to be consistent with what we'd said at our Oct. 0 earnings call with the 2 adjustments that I noted, which is CapEx, a little bit higher based on some growth programs that we're anxious to invest in and the impact of a few hundred million based on the updated BDS charges. So it's consistent with those 2 adjustments. Now in terms of profile as we've discussed and you mentioned, the first half will be negative, the second half will be positive.

It will be a net usage in the calendar year, but importantly positive momentum as we accelerate cash flows exiting the year that sets us up very nicely for 2026. Now in terms of levers, the first half of the year, BCA is going to be negative driven by the working capital usage and continued investment in the 777X program. BDS is going to be negative due to the prior period charges running through as well as normal seasonality as pertains to customer receipts. And BGS is going to be nice and steady contributing in the half. As we go to the second half, BCA is expected to flip positive because then it will get the benefit of the working capital as deliveries accelerate while we still invest in the 777X program.

Again, it's all going to be a function of our ability to work that, those higher deliveries in the back half. Now BDS is going to move positive despite a continued drag from the charges primarily from the benefit of favorable receipt timing that's natural and seasonal in that part of the business. And then BGS, we tend to better second half than first half, so it's going to be a nice steady, but growing profile for the second half. And as I mentioned, the CapEx is going to be a bit higher, but for good reason because that's all about growth. So in terms of the numbers that you described, that's a reasonable ballpark of what we're aiming at and we're managing all the levers and keep you updated as we move through the course of the year.

next question is from Sheila Kahyaoglu from Jefferies. Please go ahead. Hey, good morning.

So, Kelly, maybe on the fixed price development programs within BDS, it seems like the timing to stabilize those keeps getting pushed to the right. How are you actively managing those programs and what are you looking to change? And then, Brian related to that, how do you correlate those charges? I think you mentioned one third is now. Can you maybe size that cash outflow for $25,000,000,000 is it $3,000,000,000 related to BDS?

And then $1,000,000,000 in $26,000,000,000 does the business become breakeven in 2027 and when does it become positive?

Okay, Sheila, I'll go first and then ask Brian to follow-up. Yes, so obviously the quarter was disappointing here on the fixed price development programs. But as I said in my remarks, we're very actively now working all these programs with our customers. And we've got the U. S.

Air Force is clearly working with us to find a better path forward on these programs, both for us and for them. So de risking through this active management process is different and it's we still have to convert it these MOAs which are memorandum of agreements. We have to convert them to contract changes. So we're in early stages, but the customers are working with us in that regard. And then I think just as I said, taking a real clear look at the EACs and the estimates to complete and making sure that we're reflecting the realities of the risks that we have.

And so I'm very hopeful that we're going to see a much more stable performance here this next year. But again, we're not done with these till we're done with these and they are fixed price, so we got to continue to work at this. Our team is very, very focused on program management discipline, making sure we're managing the tasks at hand. But a lot of work yet to do, Sheila, on these. I think we're making progress, but I can't certainly can't claim victory yet.

And Sheila, in terms of the cash flow, you're correct. The new charge of $170,000,000,0.0 we characterize about a third of that is going to be over the next three years. So it's a little bit front end loaded. So a few million dollars a few hundred million dollars of pressure that we see in 2025 versus what we said back in Oct. 0.

Now in terms of the broader question on the full way the charges are going to tend to flow through, I think, BDS for 2025, the cash flow performance is going to look a little bit like 2023. And then once we get through 2025, it'll be in a much different spot because a lot of that headwind from the charge will be behind us. And when we get exactly the break even positive, won't be this year, but can't wait to have that discussion as we move out beyond exiting this year.

Got it. So breakeven could be possible in 2026 or maybe 2027?

Thank you. And our next question is from Ron Epstein from Bank of America. Please go ahead.

talk about how you're thinking about Boeing's portfolio? I mean, there's been a fair amount of press about maybe some things could be up for sale, maybe not. What's core? What isn't? So like the way I've been thinking about it, 1 of the things that's been talked about is maybe selling Jeppesen.

But on 1 hand, maybe that's a good idea, but on the other hand, that puts Boeing's name in pretty much every cockpit of every airplane on the planet. And is that a bad thing? So, I mean, how are you thinking about it?

Well, so first of all, Ron, we've been through the detailed portfolio review, which was 1 of my early tasks and that's complete. Highlighted areas that are questionable to our core and we go through an analysis to look at each of those areas and we're in process in that. As I've looked at this, here's how I would think about it, Ron. This is not going to be a major restructuring of the Boeing company. The core business that you see us in and we're going to continue to be in those core areas.

But there are some areas, you named 1, there are some areas where we can streamline the organization or we may be better off focusing our energy elsewhere. And we'll be actioning those over the coming months and year. The only thing I would say is that as you look at those part of that decision process is what do you do with something. In some cases, you have potential that you could sell it and there are buyers. In some cases, that may not be a viable approach.

We may want to just not continue with the next phase of the project or something like that. So we're going through that. But I think if I give you any guidance, think of it as more pruning the portfolio, not cutting down the tree.

Got it. Got it. And you'd expect maybe we'll know more about this in the next twelve to eighteen months, something like that?

Yes. Look, I can't really speak about individual portfolio decision areas. But as they come along, obviously, you'll see what we're doing there.

Thank you. The next question is from Myles Walton from Wolfe Research. Please go ahead.

Thanks. Good morning. So on the supply chain and maybe the Spirit integration, how key is that to your ability to get to 38 and then get above 38? And then if you could just quickly touch on the seven eighty seven and the supply chain constraints you're observing there specifically on interiors and if heat exchangers are still the issue and how quickly you expect those to release within the context of 2025? Thanks.

Yes, Miles. So look on Spirit, I don't view Spirit fuselages as a constraint right now for us to get to rate 38. As I mentioned in the remarks, they've done a really, really nice job of improving the quality of the fuselage and the flow of the fuselages. So we're in really, really good shape on fuselages with Spirit, which sets up a very successful integration. We've got a team of Boeing folks at Spirit working hand in glove with them as they improve their production processes.

And I think that sets us up well for the upcoming integration, which will happen sometime still we're projecting middle of the year. Relating to seven eighty seven inventory or I mean supply chain, as Brian said in his remarks, I think we're working through the heat exchangers. We still need some additional improvement there, but all the improvements look good. Seats remain a challenge for us and it's not the seat. We call it seats, but it's the monuments really that go around the seats and the integration of the IFE and the certification associated with that.

And we're still challenged in getting through cert on some new of type seats on 07/87. We got a plan on that. It's really a customer by customer basis. 1 of the things we're looking at for the future is we've got to spread these seat new seat configurations. We call them code 1s.

We've got to spread these code 1s out to allow ourselves and the regulators more time to get through the certification. These things are complex. They're not a seat. They're a complex monument. And particularly as we move to doors, doors are a real challenge in the certification process.

And so we've got to work through some of that. We've got a team really focused on that, but I think it's going to continue to be a challenge for those seven eighty seven deliveries where we have a new seat configuration that needs to be certified. So for example, Lufthansa, we've got a lot of completed airplanes that are held up still on seats and we're working through that. Hopefully, we'll get through that this year and we'll have more successful seat integration program as we ramp seven eighty seven up.

And Brian, the delivery number for seven eighty seven for this year, 7580, is that a doable number?

Yes. So as we've said, we're at 5 per month. We want to get to 7 sometime this year. And we've got, call it, high teens coming out of inventory. So when you add all that together, for sure, maybe a little bit better.

Thank you. And our next question is from Scott Duisso from Deutsche Bank. Please go ahead.

Hey, thanks for taking my question. Kelly, could you characterize the pace at which you think the business can liquidate 777X aircrafts from inventory once EIS hits? And then are you expecting the first class cabin seats to be certified for the 777X launch customers by the time 777X itself is type certified? Or is there any risk of delay there on seating as well? Thank you.

Boeing (BA) Q4 2024 Earnings Call Transcript

Company Participants