Boeing Reports $257 Million Q2 Loss on Starliner
Boeing revealed on Thursday (July 27) that the company has lost an additional quarter billion dollars on its troubled CST-100 Starliner program, raising total losses on the crew transport to nearly $1.5 billion.
Boeing reported a $257 million loss on Starliner in its second quarter earnings report. The spacecraft is designed to carry astronauts to the International Space Station (ISS) for NASA on a commercial basis. Boeing said the loss was “primarily due to the impacts of the previously announced launch delay.”
The latest charge brought total losses on the troubled Starliner program to program to $1.47 billion since 2016, according to Boeing’s earning statement, annual reports, and filings with the Securities and Exchange Commission (SEC).
NASA has awarded Boeing with firm-fixed contracts worth $4.75 billion since 2011 to develop Starliner to carry astronauts to the space station under the space agency’s Commercial Crew Program. The spacecraft has been delayed for years by a series of technical issues.
Last month, Boeing and NASA decided to indefinitely postpone a crewed flight test planned for July 2023 due to wiring and parachute issues. A successful crew flight is the final hurdle to approving Starliner for commercial flights.
Boeing has conducted two uncrewed flight tests. The first flight failed to reach ISS in December 2019 due to software and communications issues; the spacecraft flew a two-day orbital mission instead. A second Starliner spacecraft flew a successful six-day mission to the station in May 2022.
Rival SpaceX has been carrying the entire load for transporting crews for NASA to ISS. The Elon Musk-led company is set to launch the seventh operational Crew Dragon mission to the orbiting facility on August 17.
Second quarter results
While engineers work out the bugs in Starliner, let’s take a look at the second-quarter results that Boeing reported on Thursday.
The Boeing Company
Summary Financial Results
Second Quarter 2023
| Second Quarter | First Half | ||||||||||
| (Dollars in millions, except per share data) | 2023 | 2022 | Change | 2023 | 2022 | Change | |||||
| Revenues | $19,751 | $16,681 | 18% | $37,672 | $30,672 | 23% | |||||
| GAAP | |||||||||||
| (Loss)/earnings from operations | ($99) | $780 | NM | ($248) | ($382) | NM | |||||
| Operating margins | (0.5) | % | 4.7 | % | NM | (0.7) | % | (1.2) | % | NM | |
| Net (loss)/earnings | ($149) | $160 | NM | ($574) | ($1,082) | NM | |||||
| (Loss)/earnings per share | ($0.25) | $0.32 | NM | ($0.93) | ($1.73) | NM | |||||
| Operating cash flow | $2,875 | $81 | NM | $2,557 | ($3,135) | NM | |||||
| Non-GAAP* | |||||||||||
| Core operating (loss)/earnings | ($390) | $496 | NM | ($830) | ($949) | NM | |||||
| Core operating margins | (2.0) | % | 3.0 | % | NM | (2.2) | % | (3.1) | % | NM | |
| Core loss per share | ($0.82) | ($0.37) | NM | ($2.08) | ($3.11) | NM | |||||
Boeing reported second-quarter revenue of $19.8 billion, an increase of 18 percent over the same period in 2022. The company’s revenue was $37.7 billion for the first six months of 2023 for a year-over-year increase of $6 billion or 23 percent.
Boeing’s second-quarter net loss totaled $149 billion, a reduction from the $160 billion the company lost during the second quarter of last year. The company’s first-half loss fell from $1.1 billion in 2022 to $574 million this year.
Boeing generated an operating cash flow of $2.9 billion and a free cash flow of $2.6 billion (non-GAAP).
Boeing Defense, Space & Security
Second Quarter 2023
| Second Quarter | First Half | ||||||
| (Dollars in Millions) | 2023 | 2022 | Change | 2023 | 2022 | Change | |
| Revenues | $6,167 | $6,191 | — % | $12,706 | $11,674 | 9 % | |
| (Loss)/earnings from operations | ($527) | $71 | NM | ($739) | ($858) | NM | |
| Operating margins | (8.5)% | % | 1.1% | NM | (5.8)% | (7.3)% | NM |
Defense, Space & Security second-quarter revenue was $6.2 billion, with a loss from operations of $527 million and a negative operating margin.
“Second quarter operating margin was (8.5) percent, primarily driven by losses on certain fixed-price development programs, as well as continued operational impacts of labor instability and supply chain disruption on other programs,” the company said in its announcement.
Boeing said it recorded a $189 million loss on its T-7A supersonic jet trainer program largely due to higher estimated costs on production contracts. Boeing said it lost $68.5 million on its MQ-25 Stingray carrier-based aerial refueling program “program also recorded a $68 million loss “primarily due to schedule delays on the Engineering and Manufacturing Development contract.”
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