Boeing is set to announce its quarterly results this Wednesday, and Wall Street analysts are cautiously optimistic about the company’s performance. Despite facing challenges such as ongoing trade tensions and supply chain issues, expectations are that Boeing will showcase some improvements.
Kelly Ortberg, the CEO who took the reins last year, is expected to highlight advancements in production rates of the 737 Max, Boeing’s most popular aircraft. Investors will be keen to hear his outlook for the remainder of the year, hoping for signals of recovery from recent difficulties.
During the upcoming earnings call, executives will likely answer questions regarding tariffs. The aerospace giant is currently navigating the complexities stemming from trade policies initiated by President Trump, which have the potential to increase aircraft and parts prices. These tariff-related challenges contribute to the financial pressures the company is currently experiencing.
In a strategic move, Boeing recently announced the sale of its digital aviation branch, including the Jeppesen navigation unit, to Thoma Bravo for $10.55 billion in a cash deal. This decision aligns with Boeing’s renewed focus on its core business operations.
According to analysts surveyed, here are the anticipated financial figures for Boeing’s first quarter:
- Adjusted loss per share: $1.29
- Expected revenue: $19.45 billion
In parallel, GE Aerospace’s CEO Larry Culp indicated in a recent meeting with Trump that reinstating duty-free status for the aerospace sector could benefit the U.S. economy, as it is a significant exporter and could help to alleviate the current trade deficit. GE, known for producing aircraft engines, has projected that tariff implications could result in an expense exceeding $1 billion collectively between them and RTX this year.
Ortberg has emphasized improvements in Boeing’s safety and manufacturing protocols, particularly in light of recent incidents, including a notable incident in January 2024 when an emergency door plug blew out during a flight, attributed to the omission of crucial bolts during assembly. Fortunately, the incident did not result in any casualties.
Following that incident, Boeing is now required to secure approval from the Federal Aviation Administration (FAA) before it can raise its production rate of the 737 Max beyond 38 aircraft monthly. This is a significant decrease compared to the production levels they were aiming for prior to the January incident and a two-month strike that also impacted their operations.
Moreover, recent employee survey results from Boeing reveal concerns about morale within the company. Only 27% of surveyed employees expressed that they would highly recommend working there, a stark contrast to 91% who felt that way in 2013. Additionally, a significant dip in pride among staff was noted, with 67% currently feeling proud to work at Boeing. Trust in the leadership’s ability to make sound decisions and address employee issues has also dwindled, as less than half of respondents reported confidence in senior leaders.
As Boeing continues to navigate these multifaceted issues, stakeholders will be closely monitoring the company’s performance in the forthcoming earnings call for indications of improvement and a strategic path forward amidst external pressures.
