Boeing posts Q3 revenue beat, improving cash flow burn rate as CEO Ortberg's turnaround plan takes off

Boeing (BA) reported a third quarter revenue beat, and an improving cash flow burn rate before the bell on Wednesday, as CEO Kelly Ortberg's turnaround of the troubled aviation giant rolled on.

Boeing reported Q3 revenue of $23.27 vs $22.29 billion, per Bloomberg consensus, higher than last quarter's $21.68 billion and a 30% jump compared to a year ago. Boeing posted an adjusted loss per share (core loss per share) of $7.47 vs. $4.92 estimated, but that was due to a one-time charge related to the 777X program

Boeing's adjusted free cash flow came in at negatve $238 million vs. negative $884.1 million estimated, a major improvement for the planemaker. A year ago, Boeing reported a staggering net loss of $6.17 billion, and negative free cash flow of $1.34 billion.

Operating cash flow also improved to $1.12 billion in Q3 vs. estimates of negative $197 million.

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Boeing shares were higher in pre-market trading.

Boeing's latest wide-body jet, the 777X, remains behind schedule and has not yet been certified by regulators, leading to Boeing taking a $4.9 billion charge due to the delay. Boeing said this contributed to its core loss per share this quarter.

"With a sustained focus on safety and quality, we achieved important milestones in our recovery as we generated positive free cash flow in the quarter and jointly agreed with the FAA in October to increase 737 production to 42 per month," Boeing CEO Kelly Ortberg said in a statement. "While we are disappointed in the 777X schedule delay, the airplane continues to perform well in flight testing, and we remain focused on the work ahead to complete our development programs and stabilize our operations in order to fully recover our company's performance and restore trust with all of our stakeholders."

Earlier this month, Boeing announced Q3 commercial deliveries hit 160 jets versus the 150 delivered last quarter and 116 delivered in the same quarter a year ago. Of Q3 deliveries, 121 were 737 Max jets (compared to 92 delivered a year ago), 24 were 787 jets (14 last year), nine 777s (four last year), and six 767s (six last year).Selling like hotcakes? A Boeing 737 MAX aircraft is assembled at the company's plant in Renton, Wash., on June 25, 2024. (Jennifer Buchanan/Pool via Reuters/File Photo)·via REUTERS / Reuters

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As for cranking up sales of its bestselling 737 Max, the FAA recently approved Boeing to raise its 737 MAX production rate from 38 to 42 aircraft per month after the plane maker met certain milestones for manufacturing and safety.

Boeing noted in its Q3 release that 737 Max production stabilized at 38 planes per month, but has not reached the 42 per month rate yet. Ortberg's longer term goal for 737 Max production is 47 planes per month.

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One hiccup in Boeing's future performance could be its defense business. Boeing defense workers at its plant in St. Louis rejected the company's latest contract proposal on Sunday, sending the strike into its 13th week.

International Association of Machinists and Aerospace Workers (IAM) District 837 said Boeing failed to meet the demands of the nearly 3,200 union members on strike.

As for future commercial deliveries, Boeing snagged a number of big deals in Q3 with Norwegian Group, Turkish Airlines, WestJet, and Korean Air, among others.

Boeing's main rival, Airbus, surpassed Boeing in global deliveries in 2019, right before the pandemic, and has kept its crown ever since. Though the company did reaffirm its forecast for the year, engine supply issues are headwinds for the France-based company.StockStory aims to help individual investors beat the market.

Pras Subramanian is the Lead Transportation Reporter for Yahoo Finance. You can follow him on X and on Instagram.

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