good Thanks, Dave, morning, and everyone.
quarter, Dave go-forward Let’s are timing. billion a are up where earnings performance and think future cost cash price by to mentioned higher certain our go de-risk some our trajectory. metric our for environment move flow $X.X prior quarter. And primary which jump period to as of was Dave and flow make a adjustments business, it more described forecasts. prior took about and to billion year three five pretty we still macro across Revenue, required I’ll our the charges fixed momentum that challenges we cash hit and right parts and by essentially driven positioning The in into. ourselves important development both was significantly $X.X $X.X positive is was Operating as both impacted performance. versus free portfolio defense including in receipt in. improving Cash deliveries billion, an our flow, we These both us financial programs, in adjustments, reassessment predictable and defense
reached commercial in and skyline Also, the service XXX the for made the to important the is complete, China. across MAX largely August. progress derisking have the we delivery milestones resumption near-term on business deliveries return we’re and of XXX First, with
This us finally, free operational performance on full track as year to to half Next, we and the financial started improvement our the XXXX, we look third to positive improve. should in puts cash of to primary XXXX. our quarter continue both and second flow. financial for And of be metric performance see
environment. expected significant Longer be macro path taking to return our previously recovery the as growth. company a by to acceleration will the our anticipated, and is significant as not sustainable than opportunity to term, Now, a bit there for challenging longer driven is
XX de-risked XX look the BDS certification portfolio at achieve As a inventory, we We execution investor XXXX we liquidate -X, and week. programs. plans to MAX, forward and the sharing our on the improve conference next our development on the and the -XX
I to X. Slide Before environment. want business current getting the points make on into financials, the a few
to market recovery is strong bit playing domestic than the time is by While XXXX proven although the has demand for this and passenger that overall XXXX returning In the frame. at as levels, out a was XXXX to America. traffic XX% commercial better turnaround is indicators And of challenges see led remains still taking Latin traffic one thing the Europe We demand in economic airplanes, expected. point XXXX to U.S., resilient. ahead, levels August, longer, the
recovery which the international remain forward, XX%, commercial levels below China XXXX was be traffic respectively. traffic, and will Going driven XX% levels. and passenger by of domestic XXXX In XX% at aggregate, at
increasing business our Congress support increased to are positioned the to its and hard and So, well And will both with internationally. spending historic increased allies defense offerings U.S., markets, In to from we driving In a Space, benefit is as their meet set economic tensions the in defense, global Defense there’s needs. see long-term for additional commercial we recovers partners for for and air budgets. we’re and strength ongoing even with fleet, market and robust of solid to and internationally, cargo spending continuing In of current traffic see challenges. domestically broad headwinds, plans demand national the to our support growing announce services, working a and continue our broad capabilities defense levels.
and continue production commercial defense both to to impact in supply Turning our chain. the businesses. Constraints
production the commercial with primary namely a key is counting to to the deliveries, XXX our areas, on will. the Customers rate on side, increases. constraint are stabilization we’re engine and partners, and subsequent On resolve supply focused few chain us which we situation
and well support and confident we’ve impacts And protect and to that and to these risk. lineup customer to suited first are diverse and and industry-wide managing on to necessary where to Dave sub-tier our utilizing work the finished that as X. needs. at our backlog, inventory tier fabrication suppliers healthy shortages. presence goods on-site for slide environment described, current let’s overall support movement mitigate financials to With stock own actions capacity increasing chain. and feel address we navigate meet the well taking internal With we’re product a supply the demand, is And our positioned backdrop, safety increased surge We’re turn inventory levels our
billion significant due same Also, $X.X receipt deliveries We period of billion Third timing. negative to generated loss year, we share in improvement quarter primarily to Core from a and revenue driven cash by $X.X of same last $X.X commercial favorable of billion, the resulting operating increased in per were billion the largely period tax last $XX earnings benefited from of a refund airplane similar of the quarter. billion a year, $X.X higher X%. defense operating charges. $X.XX, flow,
X. Airplanes Commercial to move Let’s on slide
rate of margin $X.X by reflect the Third costs the and quarter resumption and of and XXX resulting losses expenses. deliveries. period higher abnormal the primarily revenue XX% was negative Operating billion XXX $X.X billion, driven up
On airplanes forward inventory. The as deliveries from X well quarter of the delivered airplanes we finishing have planning be rework based in fleet program, as going inventory in the XX requirements. pace XXX customer on and will
We these expect most years. airplanes to the next delivered two over be of
to deliveries. market a key anticipate in than to month We low and term, produce airplanes will continue item with to for over remains airplanes higher recovery. the five rate chain production more Near watch time. supply XX due per wide-body gradually XXX rates we backlog, and return the expected at Longer term, production
expectations, still end quarter, $XXX five line medium-term below are $X production the by to a the incurred with with of about of anticipate and by of costs driven our on and abnormal have XXXX. most billion, in we return These the We positive XX. we in total costs be customers XX the planning, rework per recorded As customers discussions to continue rates fleet million month.
which our We due airplanes factory below XX flow Moving on previous impacted quarter, to in XX expectations, supply to primarily delivered the disruptions, the time. program. chain
to continue We towards stabilizing deliveries. work
for XX year. with were storage, in However, about quarter in the with the began airplanes, are last XX largely XXX for The XXX remain trend in inventory, XXX estimate MAX given of out deliveries the positioning MAX expected this airplanes our we plan, quarter. delivery year. in next also we built deliveries There inventoried but XX now to ended into low-XXs delivery our quarter. Of airplanes to X is line date, and down XXX China. monthly customers the in airplanes versus We
airplanes we explore our the continue XXXX. as XXXX assessment with and remarket in airplanes to time -X, near-term -XX deliver delivery options XXXX expect Based inventoried We of derisk we these moving to plan. some our some lines, most of latest on now into the and of China to certification
quarter, of We and is efforts FAA XXX-X line and delivery expectations, Moving of and the are in costs prioritize billion with still XXX-X the third these shared development production program. expect the on anticipate still resources while to $X.X unchanged ongoing program abnormal what paused. XXXX from to to Development million to XXXX, remains with $XXX line coordinate we We time last in across costs quarter. the about XXXX in booked record our the through of we airplane XXX-X first continue programs. our
quarter, During XXX commercial booked orders. the airplane we
end MAX, at of airplanes in we As the including we at XXX $XXX each serve. are we Dave quarter, programs, of had And the the for XXX, proud the mentioned, orders over XXX, customers XXXX. alone, XXX, valued billion. In to the X,XXX third September received backlog our
and to now Security Let’s on slide move Defense, X. Space
charges $X.X negative driven and respectively. programs. revenue at XX.X%. down of losses $X.X was price and up $XXX VC-XXB and the of billion fixed billion, $X.X bulk certain were margin XX%, million, by billion was these quarter made KC-XXA Third development operating on approximately Results
crude MQ-XX and other These losses recorded on of commercial comprehensive also saw We a program review reflect pressures T-XA, across and programs estimates. programs. losses financial
higher weighted primarily in near of resulted XXXX. well from the during recent our the changes Adjustments technical than XXXX anticipated. of in are were we result supply flow challenges, or year-to-date at both The performance. estimated resulting continue some due While to longer quarter, as of BDS term, were as the future and to now developments and cash usage chain are the information heavily expected for most costs recorded which new cash a losses manufacturing assessment impact estimated others
like performance execution While driving outsized we’re on margins current focused to we’d and future stability. be, where programs margin doesn’t sure, reflect will have key in an on be BDS for periods. These recovery to impact
awards billion including $X the and received $XX we side, quarter, U.S. demand tanker billion. the both, during Israel, backlog in the On orders resulting BDS from of in
selected has the by Polish the military. been helicopter Additionally, Apache
Services on quarter, parts Now, strong slide Global our distribution results The by had X. and let’s turn Services business. Global another driven business primarily to
Third contract. was for offset BGS on valued defense XX.X%. top continued was expansion including up anticipate positioned this during we growth healthy government commercial $X.X $XX billion. by XXXX by Results see depot support and similar year, service highly and partially to and volume. We Air lower is growth. total F/A-XX we’ve commercial Italian portfolio, billion contract were a billion, line X%, received the orders quarter and is growth what capabilities for backlog and With volume our Force driven mix, The in $X favorable an quarter, business revenue XXXX. support so tanker margin seen higher operating in services Based for our far the
ended cover since sheet, marketable turn cash of balance generation. and let’s second and on flow by the cash strong the debt. quarter driven Now, quarter third the free, of with billion of X liquidity billion and We improvement the end with an cash to slide $XX.X securities $X.X
to revolving $XX facility billion, chose undrawn. we flow the and was million. $XX from a $XX.X cash generation of remains reduce due our the million, cash cash quarter, operating which capacity year-to-date and was outlook, of free to During Year-to-date usage flow credit to $XXX improving our billion flow business size
fourth We expect year, flow, full driven primary commercial deliveries. be metric, quarter cash and financial by to for the the our free positive
Our debt balance quarter the at $XX.X is last consistent with billion. the end of
Our turnaround, the performance debt remain to over time. In a drive a our growth investment-grade strong the levels years. focused the taking way and actions to committed credit conclusion, right we generation last remain reducing long come and we’re stability three for and over we and on have rating own through to cash flow on executing we’ve do, priority, work our while quite future. is more We
We the future. Dave lay that demonstrating in it for With through is also for we’re And will our and that, to we’re the over invest resilience to ahead, key More that foundation exceptional but right capabilities confident comments. path. continue on the all, closing team work dedication.
