Summary
- Boeing's quarterly results show increased production of its popular 737 program and 787 Dreamliners, with deliveries of 136 commercial aircraft and a backlog of over 4,800 airplanes.
- Revenue for the Commercial Airplanes department increased to $8.8 billion, driven by higher 787 deliveries.
- Boeing signed significant purchase agreements for 460 net orders.
Boeing has released its quarterly results as it ramps up production of its most popular aircraft. The manufacturer is increasing production of its popular 737 program by up to 38 aircraft per month. Meanwhile, it will increase 787 Dreamliner production to four per month.
Revenue increased to $19.8 billion based on the delivery of 136 commercial aircraft. Decreased defense income, however, resulted in a loss of $527 million for the department over the quarter.
What about airplane deliveries?
Boeing delivered 136 commercial airplanes over the quarter, leaving a backlog of over 4,800 airplanes worth a combined $363 billion. Revenue for the Commercial Airplanes department increased to $8.8 billion, driven by higher 787 deliveries. The company also invested heavily in research and development over the second quarter, leading to a lower operating margin.
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Boeing increased the production rate of its 787 Dreamliners to four per month, intending to produce five per month by late 2023 and 10 per month within the next three years. The manufacturer still expects to deliver 70-80 airplanes from its current backlog this year. Dave Calhoun, Boeing's President and Chief Executive Officer, sounded optimistic when delivering the results:
"We had a solid second quarter with improved deliveries and strong free cash flow generation. We are well positioned to meet the operational and financial goals we set for this year and for the long term.
"While we have more work ahead, we are making progress in our recovery and driving stability in our factories and the supply chain to meet our customer commitments. With demand strong, we're steadily increasing our production rates across key programs and growing investments in our people, products, and technologies."
Boeing is also ramping up production on its narrowbodies. The Boeing 737 program aims to produce 38 aircraft per month and expects to deliver another 400-450 airplanes this year as more become available. The target production rate is 50 aircraft a month by 2026.
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Boeing's operating cash flow stood at $2.9 billion for the quarter, which it credits to higher commercial deliveries and favorable receipt timing.
Orders are up
Boeing also signed several significant purchase agreements this past quarter for a grand total of 460 net orders. Last month, Air India finalized its order for 290 new aircraft, including 190 737 MAXs, 20 787 Dreamliners, and 10 of the upcoming Boeing 777X aircraft.
New entrant Riyadh Air ordered 39 aircraft as it plans a commercial debut. In Europe, Ryanair announced a significant order for up to 300 Boeing 737 MAX 10 aircraft worth $40 billion. The carrier is also a significant operator of 737s, and the MAX 10 will fit 228 seats each, up 21% from its current Boeing 737-800s.