Boeing (BA) released a mixed Q1 earnings report, beating on top-line revenue but missing on profit. The company also said it would be boosting output of its 737 Max planes despite a recent production issue.
For the quarter, Boeing reported revenue of $17.92 billion, up 28% compared to a year ago and topping estimates of $17.43 billion, as the planemaker said demand for its planes pushed higher. Boeing’s adjusted EPS loss for the quarter of $1.27 was wider than Street estimates of $0.97.
“We delivered a solid first quarter and are focused on driving stability for our customers,” Boeing CEO Dave Calhoun said in a statement. “We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term. Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future.”
The company reaffirmed its prior guidance of $4.5 billion-$6.5 billion of operating cash flow and $3.0-$5.0 billion of free cash flow (non-GAAP) for the year.
Boeing also reaffirmed its prior guidance for the 737 Max this year, seeing 400-450 deliveries this year, and said it will boost production the 737 to 38 planes a month. This comes after the plane maker suffered a setback with its 737 Max production in mid-April, warning that a problem with several brackets in the fuselage would affect deliveries.
“We will work diligently through rework of affected airplanes in production and storage to ensure each meets our standards of prior delivery,” Calhoun said in a memo to employees today. “This effort will impact the timing of deliveries over the next several months.”
Calhoun had previously said the issue would delay production by only weeks. Boeing’s current backlog of 737 planes stands at 4,219 planes, per Boeing’s website.
Boeing also said today the 787 Dreamliner program is producing three planes per month with plans to ramp production to five per month in late 2023, and to 10 per month in the 2025/2026 timeframe. Boeing’s 787 Dreamliner faced a delivery delay of its own back in February, as the company had to halt deliveries due to an issue with a fuselage component. The issue was resolved in early March after the plane maker addressed concerns raised by the FAA about Dreamliner’s forward pressure bulkhead.
Speaking of the Dreamliner, in March, Boeing landed a huge deal with Saudi Arabia, as first reported by Yahoo Finance’s Brian Sozzi. Boeing secured an order for up to 121 787s from two Saudi Arabian airlines — state-owned Saudi Arabian Airlines and new national player Riyadh Air. A total of 78 planes are considered firm orders, while 43 are options to purchase more. Of the 121 orders, 72 are from Riyadh Air.
Based on the list price for the 787 of about $338 million, the deal could be worth up to an estimated $40 billion.
“It is significant,” Calhoun said to Yahoo Finance about the deal.
Boeing previously announced Q1 deliveries earlier this month rose to 130 up from 95 a year ago, with 113 737 Maxes, 11 787s, four 777s, and one 767 and 747.