114 annotations
Yes, I'm sure Brian is going to answer this one, but let me start.
We have a rate increase plan. And as everyone knows, it gets us up to 50 here as we get into that '25, '26 window.
So our job now, given the slowdown here in these 6 months and then sort of the push out of those rate increases is to make sure we have all the inventory we need to satisfy that 50 number and have the buffers where they need to be to make sure that the supply chain can demonstrate the capacity to meet those numbers.
So this slowdown, in my view, is an opportunity for us to shore up whatever supply chain issues were out there sort of one supplier at a time and to get there.
slowdown will help iron out supply chain issues
Transcript
2024 Q1
30 Apr 24
But Brian, just kind of curious, are there some -- any significant milestones or risk retirements that you're -- that you could point to here over the next 12, 18 months that kind of give us a little bit of an idea of when those things completely go away and we begin to start seeing that financial model that you've talked about start to lock in for that '25, '26 time frame?
bds milestonrs?
Transcript
2024 Q1
30 Apr 24
With respect to IAM, as you know, through the summer, there's a lot of discussions going on between our team and their teams. It feels productive.
While we're doing that, we have huge engagement with a relatively new workforce across our factories in light of what we've just experienced. That engagement helps. It doesn't hurt.
I am -- I can't ever tell you I'm perfectly confident that we rush to an agreement. But we're all going to try to solve for continuous production. And I think we -- I think our chances are good.
So -- but we're not going to know until we get really close to the deadline. And that's just real life and labor negotiation.
IAM could be an issue -- see UPS
Transcript
2024 Q1
30 Apr 24
When you look at production on the 737, when you talk about going to $10 billion in free cash flow maybe by late -- by the end of 2026 or even 2027, this seems to be very much contingent on getting to this 50 a month rate. But when you look at that process, if I go back even pre-grounding for the MAX, Spirit had never successfully done a rate break to 50 a month before.
And given the restart mode that they're in right now, how do you see the pathway to getting up from where they are today, getting through the quality issues and getting to 50 a month there within 2 years?
David Calhoun
We do. Spirit's committed to it.
I think the acquisition of Spirit will factor in significantly into that prospect. Clean fuselages in Spirit and in Wichita and fix on all those nonconformances will reduce their cycle and improve their output.
So there's a lot of things that contribute to it, Doug. If we get ourselves to 38, which is our first objective, and we do it in a steady fashion moving up another 12 in my view, is doable in the window that we're talking about.
So that's the bet we're making, and I'm confident we can get there. But job 1 is the 6 months that commenced post Alaska and the inspection protocols and the nonconformance fixes that are then embedded into the Wichita facility.
nedd to get to 50, how will you get there?
Transcript
2024 Q1
30 Apr 24
Longer term, we remain confident in our ability to achieve $10 billion of free cash flow.
However, given our continued focus on safety, quality, stability, we continue to expect that this goal will take us longer than we originally planned and later in the '25, '26 window primarily tied to the 737 and 787 production delivery ramps of 50 per month and 10 per month, respectively.
10bn in FCF but later in the 25/26 timeframe
Transcript
2024 Q1
30 Apr 24
he 2024 free cash flow outlook I shared last month is still expected to be a generation in the low single-digit billions. Cash flow should improve as we move through the year and be back-end loaded driven by BCA deliveries and receipt timing, including an expected Lot 11 award on the Tanker.
Second quarter free cash flow is expected to improve sequentially but be another sizable use of cash
cash flow outlook
Transcript
2024 Q1
30 Apr 24
Boeing Global Services.
BGS
Transcript
2024 Q1
30 Apr 24
Our core business, representing about 60% of our revenue, is seeing solid consistent performance in the mid- to high single-digit margin range with strong demand across the board.
On the 25% of the portfolio, primarily comprised of fighter and satellite programs, operational performance further stabilized in the quarter, which drove improved margin trends. We still expect to return to the strong historical performance levels as we roll into new contracts with tighter underwriting disciplines as we move into the '25, '26 time frame.
Lastly, we have our fixed price development programs that represent the remaining 15% of revenue. Despite the relatively modest updates in the quarter, we continue to retire risks and remain focused on maturing these programs quarter in and quarter out
colour on programs
Transcript
2024 Q1
30 Apr 24
First quarter results were impacted by losses on 2 fixed price development programs totaling $222 million, $128 million on the Tanker and $94 million on the T-7A.
Our game plan to get BDS back to high single-digit margins by the '25, '26 time frame remains intact. We've made important progress in 1Q.
Yet mote losses on fixed oricde prograns
Transcript
2024 Q1
30 Apr 24
Boeing Defense & Space.
BDS
Transcript
2024 Q1
30 Apr 24
inally, on 777X, we continue to progress along the program timeline and still expect first delivery in 2025. We'll follow the lead of the FAA as we progress through the process, including working to obtain approval from the FAA to begin certification flight testing.
777x on track
Transcript
2024 Q1
30 Apr 24
As it pertains to the certification of the -7 and the -10, we coordinated with our customers and added more 8s and 9s into the skyline in the near term to mitigate impacts to their fleet needs and stabilize our production plans. And the program margin has been updated to reflect these impacts as well as the slower production ramp.
7/10 certifification
Transcript
2024 Q1
30 Apr 24
On the 737, we delivered 67 airplanes in the first quarter as we deliberately slowed production below 38 per month to incorporate improvements to our quality and safety management systems, including reducing traveled work and addressing supplier nonconformances. These continued efforts will cause April deliveries to be more in line with February levels as we complete our work.
Production [indiscernible] below 38 per month for the first half of the year and will be higher in the second half as we move back to 38 per month with the timing of rates beyond 38 predicated on the work we're doing with the FAA. We've recently made adjustments to the master schedule, and we'll continue to manage supplier by supplier based on inventory levels and rate ramp readiness.
737 deliveries (67 in Q1)
Transcript
2024 Q1
30 Apr 24
Boeing Commercial Airplanes
BCA
Transcript
2024 Q1
30 Apr 24
For the year, we delivered 73 airplanes, within the guidance range we originally outlined for 2023.
73 787 deliveries i 2023
Transcript
2023 Q4
12 Feb 24
We're still confident in the goals we laid out for '25, '26 although it may take longer in that window than originally anticipated, and we won't rush the system.
With that, I'll turn it back to Dave for closing comments.
kept to 2025/2026 goals
Transcript
2023 Q4
1 Feb 24
We always knew 2024 was going to be an important year in our recovery. Based on what we know today, we expect another steady year of free cash flow driven by the 737 production at 38 per month, ongoing execution of the 787 toward our long-term objectives, continued liquidation of our 737 and 787 inventory and continued focus to wind down both shadow factories.
postponing 2024 guidance
Transcript
2023 Q4
1 Feb 24
15% of revenue. Despite the relatively modest cost [indiscernible] in the quarter, we continue to focus on maturing these programs and retiring risks quarter in, quarter out. And we made some good progress in the fourth quarter.
bds 15 "good progress"
Transcript
2023 Q4
1 Feb 24
On the 25% of the portfolio primarily comprised of fighter and satellite programs, operational performance stabilized as we exit the year.
bds 25 still neg mgn but oimprove
Transcript
2023 Q4
1 Feb 24
Our core business remains solid, representing 60% of our revenue and performing in the mid- to high single-digit margin range.
bds-60% mid to hsd margin
Transcript
2023 Q4
1 Feb 24