Boeing’s Q2 2025 Cash Flow Challenges and Delivery Delays Continue Amid $4B Loss

Essential Insights

• Boeing faces continued cash flow and production challenges in Q2 2024, CFO Brian West confirms.
• In Q1 2024, Boeing experienced a $4 billion cash burn following a midair door plug detachment incident, triggering multiple regulatory probes.
• The company anticipates returning to positive free cash flow in the latter half of 2024.

Boeing's financial and operational difficulties are set to persist into the second quarter, as highlighted by CFO Brian West during a recent industry conference. The firm’s cash outflows remain significant due to slowed production and delivery disruptions driven by supply chain constraints and safety investigations.

Following a $4 billion cash depletion in Q1, Boeing expects Q2 cash flow challenges to be similar or slightly worse, with analysts projecting a $2.12 billion cash burn. However, positive free cash flow is forecasted for the second half of 2024, balancing the year's overall financial performance.

Q2 Free Cash Flow Forecast: Slightly Worse Than Q1

According to estimates from Visible Alpha, Boeing’s second-quarter cash burn will likely align with or exceed Q1's performance, but improvements are anticipated in the second half of the year. CFO West emphasized a patient approach prioritizing safety and gradual operational improvements, despite potential short-term dissatisfaction among customers and shareholders.

"We acknowledge the frustration caused by production and supply chain hurdles," West stated, "but our focus remains on implementing corrective actions to ensure long-term reliability and safety for our clients and the aviation industry."

Delivery Volumes Face Continued Pressure

Delivery numbers are expected to remain subdued in Q2 after the lowest quarterly deliveries since 2021, impacted by the January incident involving a Boeing plane's door plug detachment mid-flight. This event led to intense scrutiny, multiple investigations, and grounding of the 737 Max fleet, necessitating a production slowdown.

These operational challenges have prompted leadership changes, including the announcement that CEO Dave Calhoun will step down by the end of 2024, alongside shifts in the board chair and commercial airplanes division leadership.

Despite the setbacks, Boeing reported a narrower loss than expected in Q1 2024. Supply chain difficulties beyond safety-related production halts continue to affect delivery schedules.

As of mid-Thursday trading, Boeing’s shares declined 7% to $173.30, marking a 33% drop year-to-date.

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