Boeing Q4 2022 Results Reveal Quarterly Loss Brought About by Labor & Supply Headwinds

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by Tolu Ajiboye · 3 min read
Boeing Q4 2022 Results Reveal Quarterly Loss Brought About by Labor & Supply Headwinds
Photo: Unsplash

Despite seeing a surge in product demand for Q4 2022, Boeing sustained a gigantic $663 million loss due to macroeconomic constraints. 

Boeing (NYSE: BA) recently posted its Q4 2022 financial report, which showed a losing effort characterized by labor and supply strains. The American aeronautics manufacturing giant posted a loss of $663 million in the fourth quarter amid supply chain constraints. These unsavory operational elements overshadowed the increased revenue the company realized from higher demand in aircraft sales and deliveries.

Nonetheless, Boeing chief executive officer Dave Calhoun optimistically viewed the latest quarterly outing. Calhoun stated:

“We had a solid fourth quarter, and 2022 proved to be an important year in our recovery. Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond.”

In addition, the company’s CEO also said Boeing continues to invest in its business while innovating and prioritizing safety. Furthermore, he explained that Boeing would strive for quality and transparency in all its operational deeds.

Boeing Q4 2022 Revenue Intake

For the fourth quarter of 2022, Boeing reported a revenue haul of $19.98 billion compared to the higher $20.38 billion analysts expected. Furthermore, the company’s adjusted loss per share came in at $1.75 versus the much lower expected earnings per share of 26 cents.

Amid the rise in demand for Boeing’s products, the Chicago-based company’s top executives refrain from ramping up production. In a memo to staff, Calhoun said:

“We’re proud of how we closed out 2022, and despite the hurdles in front of us, we’re confident in our path ahead. We have a robust pipeline of development programs; we’re innovating for the future, and we’re increasing investments to prepare for our next generation of products.”

Despite the labor and supply drawbacks, Boeing also generated positive free cash flow in 2022 for the first time since 2018. Since the easing of pandemic restrictions, aircraft operators and manufacturers have benefited from a sharp rebound in air travel. During the height of Covid, the airline space ranked high among the most affected industries across the globe.

For Q4 2022, Boeing generated $3.1 billion in cash flow. This sum came in much higher than the consensus estimates of $2.3 billion for the year and represented the most since 2018. In the ensuing time, the aeronautics corporation endured a years-long crisis sparked by the second of two fatal 737 Max crashes.

Calhoun admitted that despite glaring challenges, Boeing remains well-positioned to restore its operational and financial strength.

Boeing’s BA shares were trading 1% lower in premarket trading following its latest quarterly results.

$13.5B Delta Air Lines Deal

Last July, Boeing received a substantial order from Delta Air Lines Inc (NYSE: DAL) for 100 737 Max 10 planes. According to reports, the delivery of said aircraft would commence in 2025 in a deal worth around $13.5 billion. Furthermore, the deal is Delta’s first with Boeing in over 10 years and includes an option for 30 more Boeing planes.

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