Boeing said third-quarter revenue was $24.2 billion

Boeing said third-quarter revenue was $24.2 billion, against $23.3 billion a year earlier. The company’s release on Oct. 27 shows $24,188 million of revenue in its summary table, a 4% increase. The same table shows a GAAP net loss of $116 million, against a loss of $5,339 million a year earlier, and a diluted loss of $0.26 a share, against $7.14. Core loss per share, Boeing’s non-GAAP figure, was $0.34, against $7.47. GAAP earnings from operations were $354 million and the operating margin was 1.5%, against a loss and a margin of negative 20.5% a year earlier. Core operating earnings were $204 million and the core margin was 0.8%. Boeing says those core figures leave out a pension accounting adjustment. They are the company’s measures.

Operating cash flow was $1,496 million, which the release rounds to $1.5 billion, up 33%. Free cash flow, which Boeing defines as operating cash flow minus spending on property, plant and equipment, was $0.5 billion. Boeing said operating cash flow reflected working-capital timing partly offset by Department of Justice settlement payments of about $0.7 billion. That payment figure is the company’s. Cash and investments in marketable securities were $20.7 billion, against $20.0 billion at the start of the quarter. Boeing said $10.0 billion of credit facilities remained undrawn.

Total backlog was $745 billion, which the company called a record, including more than 6,300 commercial airplanes. Commercial Airplanes revenue was $10.7 billion and the operating margin was negative 6.5%, which Boeing tied to a less favorable delivery mix, higher projected costs for future production-rate changes, and higher estimated supply-chain costs. It said the unit booked 300 net orders, delivered 161 airplanes, and ended with a backlog of more than 6,300 airplanes valued at $612 billion, which it also called a record. It said the 737 program was still moving toward a stabilized rate of 47 a month, that the 737-7 received amended type certification from the Federal Aviation Administration in the quarter, and that the 737-10 received certification in October. It said 787 production was stable at 8 a month, and that 777-9 certification flight testing continued with first delivery still on track for 2027, in the company’s words.

Defense, Space & Security revenue was $7.9 billion and the operating margin was 6.2%. Boeing said the margin reflected a $252 million gain on the sale of HRL Laboratories and better operational performance. It said the unit was selected by the U.S. Navy to design, build and deliver the F/A-XX fighter, and that this order is not in backlog pending the source-selection review. It said defense backlog was $101 billion, which it called a record, with 23% from customers outside the United States. Global Services revenue was $5.6 billion, the margin was 18.3%, and backlog was $33 billion.

President and chief executive Kelly Ortberg said in the release that certification of the 737-7 and 737-10, and selection to design and build the Navy fighter, were important steps, and that the company was not done. The production rates, the 2027 delivery timing and the backlog descriptions are Boeing’s. Reuters reported that the shares fell 10.7% on Tuesday after the loss. A share move is a market result, not a judgment on whether the shares should be owned.