Boeing expects losses in the fourth quarter due to strikes, according to the Investing.com program

The company’s preliminary financial results are based on management’s estimates and are subject to finalization after the completion of financial and accounting procedures at the end of the quarter. The information published in this article is based on a Boeing press release, and actual results may differ when finalized and publicly released. Boeing’s fourth quarter results will be officially announced on January 28. Based on the current InvestingPro analysis, the stock appears to be overvalued, with analysts setting price targets in the range of $85 to $250. Investors looking for deeper insights can access the comprehensive Pro Research Report, which provides a detailed analysis of Boeing’s financial health, valuation metrics and growth outlook, along with 7 additional exclusive ProTips. Based on current InvestingPro analysis, the stock appears to be overvalued, with analysts setting price targets in the range of $85 to $250. Investors looking for deeper insights can access the comprehensive Pro Research Report, which provides a detailed analysis of Boeing’s financial health, valuation metrics and growth outlook, along with 7 additional exclusive ProTips.

Financial impacts stem from the International Association of Machinists (IAM) work stoppage and subsequent agreement, as well as compensation related to certain defense, space and security programs and workforce reduction costs announced the previous year. Boeing’s Commercial Airplanes segment is expected to post revenue of $4.8 billion with an operating margin of (43.9) percent, impacted by lower deliveries and pretax earnings costs of $1.1 billion on the 777X and 767 programs.

The 777X program in particular faces pre-tax costs of $0.9 billion due to increased labor costs associated with the finalization of the IAM agreement, which will occur over the coming years. Despite these setbacks, Boeing still anticipates first delivery of the 777-9 in 2026.

Boeing’s Defense, Space and Security division is also expected to recognize pre-tax earnings charges totaling $1.7 billion for several programs, including the KC-46A tanker and T-7A trainer aircraft, with only the KC-46A program accounted for $0.8 billion of the charge due to higher production costs and the impact of the IAM shutdown. The division expects revenue of $5.4 billion in the fourth quarter and an operating margin of (41.9) percent.

Kelly Ortberg, Boeing’s chairman and CEO, acknowledged near-term challenges but highlighted steps taken to stabilize the business, such as reaching an agreement with workers represented by the IAM and successfully raising capital to improve the company’s balance sheet. Boeing also continued production of its 737, 767 and 777/777X aircraft models.

The company’s preliminary financial results are based on management’s estimates and are subject to finalization after the completion of financial and accounting procedures at the end of the quarter. The information published in this article is based on a Boeing press release, and actual results may differ when finalized and publicly released. Boeing’s fourth quarter results will be officially announced on January 28.

In other recent news, Boeing Co (NYSE:). faced a significant reduction in annual shipments in 2024, reaching the lowest level since the COVID-19 pandemic. The company delivered a total of 348 commercial jets, a sharp drop from 528 the previous year. Boeing’s new jet orders in 2024 were less than half of what was recorded in 2023. Despite these challenges, Ryanair Holdings (NASDAQ: ) Plc, Europe’s largest operator of Boeing’s 737 Max, expects the company to regain its competitive edge with the expected return of Donald Trump to the White House.

Furthermore, Boeing’s Q4 2024 delivery data reveals a total of 57 commercial aircraft delivered, contributing to the annual total of 348 aircraft. The 737 led deliveries with 36 units in the fourth quarter, ending the year with 265 deliveries. Amid these developments, Boeing is currently negotiating a new deal with US prosecutors in connection with the two fatal crashes of the 737 MAX.

In addition, AerCap, the world’s largest aircraft leasing company, expressed concern about potential trade tariffs proposed by US President-elect Donald Trump that could disrupt Boeing’s cash generation. Positively, Barclays (LON:) upgraded Boeing stock from Equalweight to Overweight, expecting sustained positive momentum in production and deliveries through 2025. These are the recent developments regarding Boeing Co.

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