No bad stock

The Boeing Company
CEO : Mr. David L. Calhoun

Quarterly earnings growth(YoY,%)

Period	Revenue	Operating Income	EPS	Release Date
2022 Q4	35.1% YoY	-91.2%	-84.9%	2023-01-25

Brian West says,

Revenue and Free Cash Flow

• Revenue for Q4 2022 was $20 billion, up 35% YoY, driven by higher commercial volume.
• Free cash flow for Q4 2022 was positive $3.1 billion, up significantly YoY on higher deliveries and strong order activity.
• Full-year revenue for 2022 was $66.6 billion, up 5% YoY, driven by higher commercial volume, offset by lower defense revenue.
• Free cash flow for FY 2022 was positive $2.3 billion, up significantly from the prior year driven by higher deliveries and order activity.

BCA Business Unit Highlights

• BCA revenue in Q4 2022 was $9.2 billion, up 94% YoY driven by higher 787 and 737 deliveries, partially offset by 787 customer considerations.
• 737 deliveries in Q4 2022 were 110 and 387 for the full year, slightly ahead of the estimate.
• Inventory of 250 MAX airplanes, 30 of which were -7 and -10 s, and 138 for customers in China.
• 77 orders were strong in Q4 2022, and the accounting quantity increased by 100 airplanes, which increases GAAP program margin.
• 376 orders were booked for BCA in Q4 2022, and backlog was over 4,500 airplanes valued at $330 billion.

787 Program and Abnormal Costs

• 22 deliveries in Q4 2022 and 31 for the full year, with 100 airplanes in inventory, most of which will be delivered by the end of 2024.
• $350 million of abnormal costs were booked for Q4 2022, taking the total to date to $1.7 billion.
• Abnormal accounting estimate increased by about $600 million to roughly $2.8 billion in total as the supplier constraint has temporarily slowed production.
• Still expect to hit five per month this year, and total year delivery guidance of 70 to 80 is unchanged, and there is no change to the 2023 cash flows.

BDS Business Unit Highlights

• BDS revenues in Q4 2022 were $6.2 billion, up 5% YoY, and operating margins were 1.8%.
• Received $7 billion in orders during Q4 2022, including a contract for 2 KC-46A tankers from Japan and an award for 12 Chinook helicopters from the Egyptian Air Force.
• The BDS backlog is at $54 billion.
• BDS is expected to be a usage of between $0.5 billion and $1 billion of cash in 2023.

Global Services Business Unit Highlights

• BGS revenue was $4.6 billion, up 6% YoY, and operating margin was 13.9%.
• Received $5 billion in orders during Q4 2022, including an F-15 depot support order for the U.S. Air Force, and opened the Germany distribution center.
• BGS is expected to generate between $2.5 billion and $3 billion of cash in 2023.

Financial Outlook for 2023

• Operating cash flow in total will be between $4.5 billion and $6.5 billion.
• Reinvest about $1.5 billion in CapEx for a net free cash flow of $3 billion to $5 billion in 2023.
• 737 deliveries are unchanged between 400 and 450 airplanes, 787 deliveries are unchanged between 70 and 80 airplanes.
• Expect R&D for 2023 to come in at about $3.2 billion versus $2.9 billion in 2022.

Dave Calhoun says,

Strong Q4 Performance

• Generated more than $3 billion in free cash flow in Q4 driven by progress in performance and continued strong demand.
• Positive full year cash flow for the first time since 2018.

BCA Deliveries

• 22 total deliveries were 480 with 69 deliveries in December.
• Exceeded target of 375, including 31 787s as we unwound inventory.

737 MAX Progress

• Fleet is performing exceptionally well, production is stabilizing, demand is strong, and more than 1,500 gross orders to date.
• Delivered 1,000-plus 737 MAXs in total, and since the return to service, the fleet has surpassed 3 million flight hours.
• 737 MAX 7 and 10 extension approved and attached to legislation at the end of the year, and no new certification is required.

SLS Launch and Space Travel

• Artemis 1 launch in November, which was powered by the SLS rocket, was inspiring.
• Boeing is capable of more in space travel.

Global Services

• Great quarter with continued growth and investment to support customers as they bring their airlines back.

Supply Chain and Reality

• Reality remains difficult supply chain and rate improvements are the focus.
• Stoppage coming down but still not where it needs to be for stable rates going forward.

Q & A sessions,

Impact of China’s aviation industry opening up

• The opening up of China’s aviation industry will have a significant impact on the aviation industry and is expected to be a major event.
• China needs the MAX to fly to satisfy the demands and the company will focus on the airplanes they have on the Tarmac today, which is close to 100 airplanes.

Stability of supply chain

• The company is focusing on achieving stability month-to-month and quarter-to-quarter, which is the more challenging part.
• The company needs to achieve stability to consider the rates that are being talked about.

New product development

• The company plans to develop a truly differentiated new product by focusing on three main elements: trust wing, digital thread, and propulsion technologies.
• The objective is to achieve a 25% to 30% improvement in the new airplane compared to existing airplanes.

Portfolio and development

• The company feels good about the portfolio and the development progress, despite difficulties with fixed-price development contracts.
• The F-15 new derivatives are very important to the customers and the company feels great about the future with its international demand as well as U.S. demand.

Financial performance

• The company generated more than $3 billion in free cash flow in the fourth quarter, driven by progress in performance and strong demand.
• The total BCA deliveries for 2022 were 480 with 69 deliveries in December.
• The company exceeded its target of 375 737 deliveries and had more than 800 net orders on the year, driven by the 737 MAX and 787.