Boeing late Thursday released preliminary Q4 results well below analyst expectations. BA stock climbed after the opening bell.
Boeing expects to report a fourth-quarter loss of $5.46 per share, widening from a loss of 4 cents last year. The company forecasts revenue of $15.2 billion, down from $22 billion last year. FactSet analysts had expected a loss of $1.52 per share, but lowered their estimates to a $1.81 per share loss following the release. Analysts expect the company to report $16.47 billion in revenue.
Boeing attributed the disappointing forecast to impacts from its machinist union strike and new contract conditions from the fall, as well as charges for certain defense, space and security programs and costs associated with workforce reductions announced last year.
"Although we face near-term challenges, we took important steps to stabilize our businesses during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet," said CEO Kelly Ortberg. "We also restarted 737, 767 and 777/777X production and our team remains focused on the hard work ahead to build a new future for Boeing."
For its commercial airplanes division, Boeing predicts Q4 revenue of $4.8 billion with an operating margin of -43.9%. The Dow Jones manufacturer expects pretax earnings charges of $1.1 billion on its 777X and 767 programs due to higher labor costs from the IAM deal, which will be incurred over the next several years. The company also anticipates the first delivery for its 777-9 in 2026.
Meanwhile, Boeing expects to recognize $1.7 billion in pretax charges on its KC-46A, T-7A, Commercial Crew, VC-25B and MQ-25 programs, due to higher estimated costs for manufacturing and production costs.
Boeing forecasts it defense, space and security business to report Q4 revenue of $5.4 billion with an operating margin of -41.9%.
The Dow Jones company releases official results on Jan. 28.
Boeing Stock Performance
BA stock rose 2% early Friday. Shares slid 1.2% in premarket trade.
The weekly chart on MarketSurge shows Boeing working on a 182.57 buy point for a 25-week cup-with-handle base. It is the stock's first base to ride firm support at its 40-week moving average since 2023.
Boeing stock has rallied nearly 29% from its 2024 low in mid-November.
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