Boeing Co losses widened for 2022 on weakness in its defense unit but the U.S. planemaker reported its first yearly positive cash flow since 2018 on stronger commercial airplane deliveries.
The U.S. planemaker missed Wall Street expectations on revenue and earnings per share in the final quarter of the year. Boeing shares, which have risen by more than 70% since September, fell 2.6% in premarket trading Wednesday.
Boeing said net losses rose to $5 billion for all of 2022 from $4.3 billion in 2021, while losses from operations rose to $3.5 billion in 2022 from $2.9 billion.
Boeing generated $3.1 billion in free cash flow in the final quarter of 2022. Boeing had forecast about $2.5 billion in free cash flow for the fourth quarter. Boeing reported $2.3 billion for all of 2022.
Boeing reported fourth-quarter revenue of $20 billion, up from $14.79 billion in the same quarter in 2022, and a loss per share of $1.75. Boeing had been expected to report $20.38 billion in revenue in the quarter and a gain of $0.26 a share, according to Refinitiv data.
“While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength,” Boeing CEO Dave Calhoun said.
Boeing affirmed it plans to deliver up to 450 737 MAX narrowbody aircraft and 70 to 80 widebody 787 Dreamliners in 2023. The company reiterated it expects to generate $3 billion to $5 billion in free cash flow in 2023.
Earlier this month, Boeing reported a sharp jump in airplane orders and deliveries in 2022. Boeing delivered 480 airplanes and won 774 net new orders after allowing for cancellations in 2022. Boeing in 2021 had delivered 340 planes and reported 479 net new orders.
The company still faces supply-chain issues as it works to ramp up 737 MAX and 787 production and is working to improve results at its Boeing Defense unit, which posted a $3.5 billion loss in 2022.
“While we have made meaningful progress, challenges remain and we have more work ahead to drive stability in our operations and within the supply chain,” Calhoun said in an email to employees.
Boeing recorded $4.4 billion in charges on loss-making defense programs over the first three quarters of the year, announcing $2.8 billion in overruns for the third quarter alone.
The company attributed the losses primarily to labor and supply issues that disproportionately impacted the KC-46 tanker and Air Force One replacement program.
Last month, Boeing won approval from Congress to lift a deadline imposing a new safety standard for modern cockpit alerts for two new versions of 737 MAX aircraft. Without a waiver, the planemaker had said the MAX 7 and MAX 10 airplanes were at risk.