Earnings call transcript Q2 2023

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Operator

Thank you for standing by. Good day, everyone and welcome to The Boeing Company’s Second Quarter 2023 Earnings Conference Call. Today’s call is being recorded. [Operator Instructions] At this time, for opening remarks and introductions, I am turning the call over to Mr. Matt Welch, Vice President of Investor Relations for The Boeing Company. Mr. ahead. go please Welch,

Matt Welch

Executive good call. Welcome And I Dave Chief and today and Executive West, quarter President Vice with Boeing’s XXXX are and Chief President Boeing’s earnings am Officer. Calhoun, and morning, you Brian to Boeing’s everyone. Financial second me Officer Thank Matt Welch.

can reminder, And broadcast slide as you a presentation and today’s follow at boeing.com.

included our including information release. the disclaimer Furthermore, filings and presentation. goals As those in press projections, risks, involve in today’s always, in included detailed forward-looking discussion in at SEC of financial and the described today’s the estimates statement end web

addition, presentation our for to earnings non-GAAP refer reconciliation and and – certain of presentation In disclosures we measures. release you for

Now, I will the over turn call to Calhoun. Dave

Dave Calhoun

everyone. Thank you, Welcome Matt.

am upfront of all going few The a quarter. the I with to businesses. was make solid, solid comments quarter to usual, very respect our for As

most challenges. free getting set that do ‘XX chain our as We and notably timeframe. our XXXX recovery. good the feel financial continue We operational ranges that the delivery for but flow for steady well on about and to XXXX outlook, The supply progress as Overall, we significant, including have cash and it’s make is we better. steadily

against target we quarter generating to billion for recovery. are is second the progress in quarter. have We billion free the we strong $X.X Cash had confident very and best encouraged We this the particularly cash the by measure $X to flow in a billion flow in are metric year. $X that

Air We announce key we and up solid second Commercial we with our of quarter. to for the are orders in And XXX for very the Airplanes secured India orders, say, a highlight proud booked to I’d net Ryanair. a businesses. couple around XXX should firm-up to XXX like Demand commitment I our remains high. quarter. had updates

the is next industry And with over beginning settle resilient. side demand demand need Broadly, to is airplanes supply years is strong, is for us. The XX system XX,XXX the what down. the strong and the telling of

and Our XXX making delivered steady on production the and in and including quarter, XX and execution We focus in XXX remains XXX. driving the commercial the we XXXs chain supply airplanes are progress. stability

through every are of guidance the year, rates reach steadily progress our our first right program on and the delivery the step path the way. increasing the the Given year. with are of half XXX we And we on on XXX for stability focus each to

have be Spirit third With escapes, the all remedied stoppage contained or respect impairment, we work the will exit as the to been quality the bridge and quarter.

So quarter it a deliveries the few will us cost in itself.

are the development XXX-XX, across and our the key XXX-X, the progressing programs: XXX-XF. also XXXX the We

proof that the right on quarter results for we and This themselves. and is speak point solid path to are operations the are our stabilize a beginning financial

to our like team service. the and to recognize I’d customers our on return XXX MAX

the As fleet to has is than this with The of market than in us. MAX well recent for XXX progress. More are largely complete all flights the since million to flight in of we back reliability. service exceptional important by service, month, an XX% hours broadly, X now and as signs with It’s of X more million service. China, return China aircraft over in returning flown encouraged more

deliver there that when are to We we’ll ready our comes. committed customers to be time and

time prioritize are but the and have the T-XA by positioned three continuing is Crew, have still is quarter. Boeing taking safety we Defense. our MQ-XX Starliner, the required. the operating hit Commercial us well lockstep whatever we to On Results and with in In programs, We price we in defense development are more and customer. performance, losses and fixed are impacted making progress. portfolio work on improve space, we

that team in confident are We committed it right. and getting to

have recent right we but program, in successes confidence the we give direction. to us that the cost added had that heading pressure some schedule MQ-XX, are On

within first of static more with facing. industry cost static supply are production the many our any testing test higher not similar the And the through on milestones some was build this in way chain estimates growth, challenge quarter. on with with for article performance key MQ-XX. quarter of and The the hitting fuselage for in the was the XX% approximately preparation and of underway the are the costs what T-XA, future, program. start We due the impact our is to we the are associated to complete Even

The the T-X. Air its successfully flight of Force first completed

flight of towards are We a start heading test earnest. in the

the to testing reduced in increased on combination from award important months this just moved firm at design We program. flight early by you program. of at quality manufacturing are to if assembly look this have moment, had we successes. We XX% concept model and from our a engineering, And looking XD very the advanced by program and some XX%. based XX And first-time our hours

progress key on programs. also making We other are BDS

the the we On have resumed aircraft rework we the acquiring completed deliveries for on Force. have production Air to and now it example, tanker,

our move programs meet quarter, or to Most of standards beat hitting in putting important importantly, and we progressing rearview them challenges, the through will confidence. are each closer fighter. the we war some we mirror. Despite are high-performance getting As contracts these through that the milestones the these increase

transparent activity. orders In to of levels. including are and in them have mature to solid improve nature charges are we Demand We confident Germany is the over we the Chinooks these development. through price side purchase stabilize, XX normalized months. XX of Chinooks. at about business. the derisk some and to from defense will and is of XX to remain for valued We also Demand shared U.S. operational continue key contracts Army working we plans fixed its more our very strong and significantly declined $X billion, performance our see booked Quarterly impacts contracts, order BDS financial to last the we strong. Given quarter,

government revenue and BGS, healthy side commercial and strong expanding Following another quarter margin. Global on earnings very Services, of both the and

We to time. through customers keep commercial are this have solid, of very flying have dynamic And really had enabled they and steady fleets team. military They proud performance. both a

of our include Japan with the predictive highlights in adopting Insight fleet. for site, Airlines our new Poland maintenance Some Boeing solution expansion quarter digital XXX the distribution parts Accelerator, this a

To that my comments, shortage have case. wrap up this pop to we be up had and of no knew start the the of we challenges year would

have even This or complex have items routes, business. chain, challenges had within supply bridges. conformance the we is We identified washed logistic including out that external a

We we what expect We items come like. transparent. are take and we move looks to when they This do, is action And progress up. forward.

of team. We the are proud

for long-term. the remain the foreseeable to demand, well positioned the year world We in strong supply-constrained for and the future. are a for Relative will we

turn to Brian. it will with And that, over I

Brian West

Thanks, Dave everyone. morning and good

with performance. the company start total Let’s financial

and margin revenue by XXX share quarter billion, will volume, EPS operating expenses three were period deliveries. that’s later. Core losses by driven was commercial per and was the up higher and minus abnormal as primarily I programs driven defense including on cover as Second Margins XX% loss X% the increased costs was $XX.X business, fixed quarter well expected The year-over-year. growth in was in core development which $X.XX. our price

timing. strong better and Dave as significantly flow, versus Relative $X drove the of Free last payment commercial activity our quarter incur most earnings quarter year mind, $X.X favorable billion in driven order quarter, in last was last in timing. shared the call, in over of expected at mentioned, the third the this quarter. advanced to to was billion the favorable higher deliveries cash by expectations positive receipt and Keep

including was Turning with the expected R&D billion. next valued Revenue MAX-XXs. with airplane Ryanair the anticipated, Operating billion, now XXX with by as have XXX to impacted the $X.X sequential to minus abnormal X,XXX period we the deliveries remains program. page, in versus higher as by improvement Riyadh Air booked costs driven on $XXX and in first will XX expenses, year-over-year XXX X.X%, India, We over Commercial cover continue quarter for up airplanes to a signed spending. including Air purchase and XXX quarter, but Airplanes. negative be I BCA up XX a backlog at was net orders margin XXX agreement XX%

a As operational we Dave far year. through this number worked of so noted, challenges

steady we key programs. look continue on increase making will are We production we stability to and as on to focus progress

see production. Overall, to work On were resolution quick change we expected delivery this through impacts Spirit the to and outlook. our pleased a is to and we stoppage, limited not will any work production

programs. the to On

and production the XXX, had point discussed in that On In timeframe. progress, In still last we began per we regards stabilizing. newly deliveries producing built airplanes month resumed meeting we including fitting of in in is June, XX per quarter, system positive issue the to to XX the rework month transitioning to also ‘XX-XX to our light May, increase Spirit a the now production in the are that we this quarter, XX of and XXX plan proof specifications. deliveries airplanes

move XXX previously XX the we now airplane time We XXX the expect We have the line. XXX part MAX to approximately and project to at of by be year take inventory remarketed This will with discussed. consistently ended in higher been plan still delivered we rate, for the sequential China airplanes improvement XXX deliveries of continue We some prioritize includes in off inventory. half. XXXX. have that quarter and to the the MAX we XX will per with stability end of XX as still most it month second As deliver in full to customers to

XX XX to quarter we quarter Moving rework with We and to year quarter per no and XX year of is total $X.X production by still plan which and XX $XXX end delivered to is X by deliveries inventory XXXX. of change We billion, and reach booked on nicely. to still program, abnormal month progressing costs line deliveries in expect is in expect We per month the the end. airplanes quarter the estimate in done by ended be end. between this year. of the there the And during XX the to increased the expectations largely most with million in and X we had still

program, the the $X on plans were billion is we from are as and our ongoing costs estimate this XXXX. total $X.X timeline to than reflects which production XXXX to expected and rather billion, million have later program unchanged. resume year Finally, $XXX Abnormal early efforts lowered

and we is and three quarter. booked in now orders space. $X.X and flat Revenue next the delivered minus was the quarter, at by the from BDS at and to XX in the price driven primarily defense CH-XX fixed $X backlog on was aircraft programs. development X.X% award XX billion. margin Army the billion $XX for in billion including U.S. page Operating an Moving Chinooks

weeks These continue to programs Similar quarter. an the out in million. operational to a previously to to the see in production tied generating delays impact impacts with mostly that several disruption margins. from lastly, of is to drove long-term last labor timeframe, $XXX on occur supply the we levels The that XX% million on the the years a determinations revised shift crew line made lower starting and historical second XXXX instability we production as scheduled to T-XA related of drove other on schedule first million $XXX had margins. of cost portfolio we closed over was commercial the the and solid related contributed and have estimates roughly over impact; performance, that that MQ-XX we impact; $XX last were chain few will quarter, a shared But which contract,

to BDS in at to performance. aggregate, normalized take time Looking will levels it return of

single-digit and and in we are The customer confident are are the strong is the across to focused high portfolio on margins focused on We the well path demand XXXX-XXXX. we positioned, execution. base,

let’s adopted which volume expected the due commercial distribution our in a site, $X.X and last businesses was services. page, fleet. $X delivering collaboration strong has quarter, very both points Accelerator the another had levels. and the were with expansion expansion Moving favorable Boeing on was driven BGS the Airlines in mix, and in next backlog $XX higher government quarter cover margin we at new announced In Poland Operating continue to to billion. received billion quarter versus these Operating quarter. with both government Insight of with is up for don’t XX% BGS year-over-year during services. BGS than margins. expect the billion, an to CAE. and orders their favorable XXX double-digit basis year margins by XX%, commercial a in Revenue an And primarily parts Japan the the mix XXX

repaid billion. And Turning our cash and repaid In and next to cash I’ll previously to billion essentially maturing Year-to-date, the to the securities. the page, shared. is we’ve a as the of for $XX.X ended debt. all debt cash debt, million quarter decreased year. cover Spirit maturities quarter, We $XX.X marketable balance $X.X billion which billion and provided our of of with debt of $X.X $XXX advance we

We credit the at also revolving $XX the undrawn. billion quarter, end of which facilities all maintained of remain

Investment-grade deploying pay generation. we’re rating Our credit invest to capital and we’ve flow priorities with down the in important. continues line strong cash is strong. position liquidity business And the debt, be in shared:

the than the flipping last performance. $X cash And billion billion I’ll operating outlook remains international. demand for The market. cash will makeup the $X from XX% better different was likely XX% our in Stepping billion passenger at back expected XX% and healthy. outlook. of cash in generation. Net-net, free to across BDS overall to levels, to lower Global flow than The with our operating the domestic page, BCA Cargo the and the we and what of expected division be remains including lower to we pre-pandemic state unchanged Commercial flow cover financial year. XXX% shared, is of May is $X due previously BGS key have XXXX programs billion traffic to free $X and still of and services. strong confidence address by up

XX% in expectations. pass-through pre-pandemic FY to more with levels. than traffic robust, the our levels at and budget China also and demand up is in XXX% ‘XX pre-pandemic May with of Defense traffic progress was continues line year-on-year above domestic

find to and supply environment. our of factories our nation needs continues the positioned as support still to And steadily on in demand chain we allies. execution, our capabilities the portfolio Our With of we and are ourselves well a strong, the increase both be and within production. supply-constrained focus

half to half. and Relative we financial of the second to performance XXXX, continue in expect to the first improve operating

continue The to BCA rate XQ the sequentially of and allowance. positive tax included will BDS third cumulative XQ lower On terms XX% strong of likely to weigh still And margins negative, remain of we tax XQ and in expect the of improve valuation of not the cash year. profitability. much quarter we’re to dollars. the the results will the specifically, adjustments but hundreds in anticipating These related be adjustments in effective remainder on sequentially, rate millions for given flow, the projected

focused challenges good Ultimately, progress feel now, revenue, Right we’re XXXX. at deliveries, All performance while XXXX. and on last confident flow, expect remain, flow the road on we’re XXXX, accelerate, improvement, the improve recovery. operating which meaningful in things to all considered, cash aligned through with margins of including are the we where direction. out we financial headed billion And about the to will we’re at squarely in IR right November. of cash laid we our and in we as And continue to our Day free plan operational $XX we performance

some With to with remarks. that, Dave I’ll it over turn final

Dave Calhoun

quarter. solid a Again,

BDS fixed have. that we the way our price contract, wrestling through are exposures We contract

importantly, before, expected. or confident them products will will see as through. said better I’ve deliver, that we the perform than warfighter most we as And We’re

with up it I’ll questions. So that, to open

Operator

Kahyaoglu Instructions] from will [Operator And question go come ahead. from Jefferies. first our Please Sheila

Sheila Kahyaoglu

Thank Dave, and you. morning, Brian Good Matt.

stabilizing talk into and operating margins? what production So Can about do loss maybe you this just how $XXX up in about Commercial the about just abnormal that you then turning mix? into drivers concessions playing Airplanes of rates cost the do and does biggest positive? thinking pricing the digging how think think we about to finalizing going million operating And quarter,

Brian West

say, better, I’ll Sheila, they and we quarter, to quarter negative – X%, down did. got BCA were X%. start were that to negative sequentially and going off Last should margins get they They that. first knew Hi, with I

good it’s So progress.

better where will quarter as we’re year, of have will negativity, moving terms year we quarter. back In we in the of of think positive. headed, next exit sequentially as the margins then the first some And into about half we and third still those year, the over move the although

in that. confident We’re

the rate ramp. the which of mentioned, are you things some ones is And

pricing us You’ll course, have is mirror in will abnormal some done. pretty of the of this be behind and environment And rearview the good.

And of likely all these will us laser-like meeting the focused we confidence year, that team the early that towards expectations. So is will it positive. be of year. And those next on margins get end the give

Sheila Kahyaoglu

Great. Thank you.

Operator

The Arment from you. line Thank Peter of from is the next question Please go ahead. Baird.

Peter Arment

rate Yes, Good think profitability we us through on thanks. morning, MAX of before that you meaningful about once complete just rate with the can is the cash profitability. month like XXXX? about questioning more Thanks. improve will Dave Brian. staying Brian, Maybe are Or the there? breaks. a Do walk see same in and to line how scheduled XX we on it liquidations hit we higher a improvement need – of

Brian West

because Well, it’s you going liquidation the dual behind be the something And a both. is make get for rid we to focused out business to us substantially be to Certainly, on of good just us. going and those move on put benefit we’re we’re very will relief the XXXX. both when huge behind it’s XXX, And we’re that progress. tracking, that as of factories,

as that’s that look trajectory XXXX, time important So We very the normal. margin through that a doubt, to XX. that, we’ve area. that be announced that a a BCA double-digit will start said, all move, before to to rate on the get of there’ll going big play focused breaks we’re That’s timeframe, beyond look And like going rate breaks. lot lot no subsequent we is to into and margins that. a by low more coupled is deal, big and in going And with just ‘XX-XX a

got The do. go levers to have to we We what are execute. know just we So clear.

Peter Arment

Brian. Thanks,

Operator

Research. from next Myles go Please you. Walton ahead. is question from Wolfe Thank The

Myles Walton

question. Thanks. One one clarification,

expected forward implying going you second are the in intrigued that delivery Dave, And there improvement XX we’re resuming that’s the end by then for in so top So pull helping I regulatory you production XXXX point? front deliveries that this at there. was pull the you schedule the was on I that at forward Brian, terms think, of range to be half of you said the XXX? now of something progress

Dave Calhoun

changed. say No, wouldn’t anything I has

process. it. We’re There ahead we on our intact. production side. given And – of still still projections simply no in still think, we’ve yes, breaks no hopefully, is desire is the regulatory margin to can regulatory We I the the you, are beat the curve. confident This that. in have But all get

Brian West

Myles, in expectation. – to of high XXX the the and get in second the we the we answer higher forecast our quarter, XXX end, than that is XXX we did to will quarterly be rates course,

Of bit And see Spirit we range we of That’s we can from of in day the middle get in rate And And a question going we more the of and execute that the up end. middle better. will sequentially move will we course, squarely as be much higher the build to airplanes. to in as the and that is that prove itself, confidence. of there. had little impact why terms high range the how day the out out

feel degree reporting confidence right and that in we but we So now, range, front. of a keep see will the good as about the very we execution,

Myles Walton

thanks. Great,

Operator

ahead. Gursky is Thank Jason from you. The next Citi. Please question from go

Jason Gursky

one Good then on morning, defense question margins. question and just Brian, everybody. one bookkeeping

just assumptions and the pretty you XX%, about mix then some ‘XX-XX little wondering programs. margins you’ve three you’ve just doing of well, then some kind when talked good based in bit you timeframe if of one, is talk your you’re high development to defense, what’s what’s margins talked in on Can pretty XX% those XX% inventory XX% you’re normalized seeing about you historically And business. right That’s that a legacy of then mix is XX%, about mix. confirm in that single-digit based things? services buckets? On And the go business business back of in you noting and more posting back here, that in on XX% what in to your that kind there. getting when more – the or the margins I’m that rate programs these how the could on bookkeeping still –

Brian West

Sure.

view businesses had want it We take let’s the teens. commercial bit. come performing But So be keep Yes, margins where be. incredibly an the little XX? don’t long-term really we be will our pushing should it like of from still doing as the back come to that services. when it that it a feel just and back in just No, time, the But better will step And a Will that to they mid-teens. still them to be I to quarter. and excellent be business We we business, And expect and time little of dramatically. will can the we have business I that business say that well. bit, as good be expectations were government feel little positioned. are good they is both a about in back

Dave Calhoun

constrained. I to just still supply do they note that Everything It’s extremely just comment supply-constrained is world. important in are that. an they on

is that pricing That being little of are not out has So their changed. get they favorable. a can taken. Anything shops

prediction and while. long so the lift don’t is out any And need that let the quite part. there, with for see everybody going fighting I a lasts? is up respect to be to next it’s how My for

moment that’s think in. we’re the I just So

Brian West

we portfolio, is to the And delivering out it’s have those the The having there, lot next that better productivity over, other that’s XX% every And are very The we’re better it’s development and to keep them of there a we closer fixed pieces the with that little – and little left get plan programs not handful about and part of negative. of just it us a just we moving. they better. things, a correct. programs is and take to quarter, They we’ve positive, behind about, going and bit it’s But in stable. go regards and that’s stabilize they stable, products getting way to get products time. execute got keep and the the a those XX%, defense to And be. think know actually lean the the talked of piece to to where that in have there that’s efforts and business, very we need those to of of price over nice to us. you’ve stable are that, They could bit keep XX% need do and swing of but and programs, a XX%,

is In what We ‘XX-XX portfolio the be XX% mirror. in we going stronger. left including and performing programs, be done will more stable, And very believe trying that milestones, looks businesses terms bring then stabilizing the be of the margins of hard this attractive over the like at at timeframe, certain will so rearview in get be right? productivity lean to to can stuff the healthier of the because XX% these we’ve even will where and that’s manufacturing, in a lot work

is levers think team road on and motivated all got And the it, to focused. the we map So is execute but the us we’ve working. clear. very laser-like It’s

Jason Gursky

Great. you. Thank

Operator

from von is question Cowen. from ahead. next The you. Cai Rumohr Thank Please go

Cai von Rumohr

Yes. much the very Thank for call. taking you

So And be be basically, earning was they programs, the out we million. earning, XX% we BDS Jason’s if loss take still follow-up to that the $XXX should question, marginally if take should on red.

say million, involved in And don’t the is one bad third XX% the if to Thanks understand. what give to there. back? color I takes underperformance Maybe profits you have mean, if So modest the looks fairly the quarter, is get them losing going programs I on much. that’s that? it a again, $XXX so How you’re really more us it little and there significant like

Brian West

Sure, Yes. Cai.

going profitability not the So modest to we’re have quarter. in

to BDS to I think them with of near-term. to went in the spot. at things a to clear, Yes, complicated and hundreds these to we’ve And have It’s and back of right just a we some a be to then trained factories to that it’s gap. we the complicated takes one go going is swing during products knows and get had solve said execute that’s that do millions that because better handful because these all much the in pandemic. And them we’re they themselves that to of get from get to bring significant very programs dark expecting not aren’t life. and portfolio, of are time And situations how work. labor up complicated the also dollars almost moving

are and expected. them. we’ve just takes it So time these because work and it how we programs a while. know go way been programs It what longer to how know bit But for a little anyone of these through we and and make products bit our will make got to we we we little than the will because doing attack progress, a

Cai von Rumohr

disruption, Is basically there that better mostly going a this pricing that the their got and of so problem? forward? – get contracts is part you and if that’s can those reach are do stuck contracts, you inflation with those all contracts with the And problem price end fixed so, any of

Dave Calhoun

Yes.

Not just me that. Let on comment really.

wouldn’t it as and because up to from of was to more get a said, and envelope pace. A less The started is to We have some couple here this. pricing and – that really call actually modifications in it answer new, this might zero, I these capabilities to get there, of here ups dark, Brian going the will a to is to the or there with answer they it product. and these products I say get same that’s embedded There we’re within contracts. products. respect So live line are old and but are lot not

the are. about with talk imagine I on You them can’t those what can call.

so getting there. going back are for but we everybody, to wouldn’t It progress. giving working seen It’s And through we are not progress learning take frustrating our just where haven’t those we be be see you we curves. learning the act we way do If We curves, guidance were. are time, we on an before. didn’t see does we that to

Cai von Rumohr

you. Thank

Operator

Thank next ahead. you. Spingarn question The Melius Robert Research. from from is Please go

Robert Spingarn

Good Hey. morning.

Dave Calhoun

Good morning.

Robert Spingarn

seems you maybe think take could Dave, it’s Transonic on same current the you well, aircraft, time, and in is service have I something it airplane do part has to about be this design this you large against actually But as second been right no the with that which and the then GTF later really LEAP a talked or while at engines pretty know to the on now. for new Truss-Braced And chance to market. the the a gen service Boeing CFM enter market question, have aircraft early working rise? narrow-body exciting as a clear like process, narrow-body XXX? And then a on the Wing

Dave Calhoun

I am Look, get Yes. glad to question. the

could We deliver of it like brand-new We a seeing level the used in this what are industry performance heavily to market potentially with to this. invested programs. is that

for me the plants choose to this to and So, not the this stage Suffice are at on we probably say, improving is power intent pick variations smart. now technology. and

We hopeful. exciting. see And we it matures service. I the then the think way NASA, it it will frankly, will and those thinks if And be power will, decisions plant do it will are think

right, You we have frankly fan someday. can use rotor diameter but and a even we maybe open are existing bigger ultimately to power, would prefer

the prove still It’s options out a the are that there. without considerations are don’t all in in I doubt. we behaved have and good it it all wind choice. make place. technology. a want too like early. If you tunnel, But to did are those just So, a talking those We to about pretty deploy are of

Robert Spingarn

so Thanks Great. much.

Dave Calhoun

Thank you. Yes.

Operator

you. Thank

Please from Liwag Your Stanley. next is question Morgan ahead. from go Kristine

Kristine Liwag

morning guys. good Hey,

Dave Calhoun

Kristine. Hi

Brian West

Kristine. Hi

Kristine Liwag

any per of timing in the can what’s month, this give particular production regarding rate? of And rate more that you their just chain? get to step-up any are monitoring insight supply other the to the with as color bottlenecks you that On be happening for increases health? And order What’s appreciated terms us in additional XXX would XX to well. you MAX

Brian West

chain we deliver Kristine, this. be we known to supply the we They confident have is move and to it are And forward. there. are Yes. able that about happy a to coordinated on while, are for

we So, feel confident. very

it the can been we at step subsequent is this those of time, schedule And and terms that’s look a like. clear move we first out we what there do on make happy to XX. are In a step-ups, master will

Dave Calhoun

on focused the effort applied readiness XX. for to the Most supply with is of respect our time chain and

Kristine Liwag

you next you That what it XX it Great. stability. I had seen you have And of would months you per mentioned to And move you do for? a see then to be have after looking the get it of six XX? over of stability, are after guys XX? step-up guys months Is some confident mean month? what that XX XX, to Is few to

Dave Calhoun

Yes. It is.

chain. for to As know But up a so in important more ready they month. you now for next than the has the XX, supply every are whether XX and maybe etcetera. has that XX, come and such we not suggest, that, have visibility form good come are We we down – to into stable XX,

will and So, pace. our think better you But steady of I combination just factories own just a assembling each much visibility step-ups it’s we of yes, see that delivering those all on do. the and at like

Kristine Liwag

Great. Thank you.

Operator

Thank you.

question next Our ahead. Please Barclays. is David from go Strauss from

David Strauss

to you. swirling address you XX. know you here that? on that looks XXX, XX. Thank just reiterated Can slow there encountering some you issue of around are like There the new start XX to I things Great. deliveries in off on July. are sort out it Dave, some are a

Brian West

Yes. There the new is no issue XX. on

ago, we might way Let’s few a up stringer and There five. then work our very in the a be getting to joint four but the then work on at tick both focused and verification on stable the clear. are weeks XX very have been

particularly feel deliveries this good And we we XX, to for XX in are very confident XX So, about. year. that

Dave Calhoun

good actually we will Brian I is me. line yes, pretty issue. the feeling are just new stability and jumped the about there reiterate, no Yes, But of

David Strauss

follow-up operating the an X.X cash Quick flow for got to you have arrow up BCA Brian, forecast, X.X there. this so Okay. year, Great. the probably

big that I surprising expected? you are from upside? upside is Is still terms the of just mean better losses. arrow signifies? in Is it working unit running sooner through what coming up or upside than to the advances than expected that So, capital, in what

Brian West

the and than orders just better The have advances, we that’s thought.

David Strauss

very Got it. Alright. Thank much. you

Brian West

welcome. You’re

Operator

you. Thank

ahead. go question Our Bernstein. Doug next from from Please is Harned

Doug Harned

you. Thank morning. Good

Dave Calhoun

Hi Doug.

Doug Harned

Hi.

can finished coming that got maintained with think you is the about where you how skyline and orders that new could to how on for of coming that. XXXX, to laid deal your should here order? have be talk have out probably like in of have ability kind excess in on new even an take demand have Can be some next And potential the it out XX likelihood It And the appears well you time. about the you in. you new talked in or orders you ‘XX you rate? guidance got And you line, MAX. You go to year line Everett of when a have about month that you potentially the so got pushes XXXX

Dave Calhoun

I Doug, take don’t why Yes. this.

to a our I I us having guess is to that quite it. the face is, market There would about doubt You orders competitors love take are there and out get of to the now for it. think circumstance XX, no and is I right. truth both ways there.

there to half of the and we me, time of wind respect in of we can is subject year moment our when really shadow of with important stability, rate execution factory apply next labor the is down those a and is increases. all For that that second that to all efforts

So, we get And that. that’s not attached simple ahead in-house, work get labor on thing to very ourselves economics and new to the to front. on of them us but And want to good airplanes. now know you any already do. just It’s have a I this the we don’t of a thing,

going are to we So, just stay focused.

on are stability. We work to going hard

if well, step for time Second that’s way. and to important myself one well the this team. half every in we I through much get because very a change be believe execute on But get don’t of either will talking in that is as I about And ‘XX BCA of pretty of moment all ahead we then a want we to and you XX.

Doug Harned

lines. XX rent principle, your do out you three But in current can the on of

be So, you there that would How how at use if you up presumably some thinking are about would aren’t even you in more one line XX complexity doing yet? logistical Everett.

Dave Calhoun

for stability. a are having now capacity to knock trying when – you little too down much right a us am is problem I not Again,

So, if we things. it’s run something going and delivery at of a stability suboptimal and level, it’s not going improve to all and cost those to us much,

don’t focused I on don’t that trades I So want are that again, to out be about want to and we I at just right moment. But talk careful. far – now, get increment. want We more have of the most to is And capacity so all are important of we than that for it. that stability. part need we probably that workforce next transition ready

Doug Harned

Okay. Great. Thank you.

Operator

Thank you.

from go Your is Please from next question ahead. Seifman JPMorgan. Seth

Seth Seifman

Good production kind confidence ramps the to there. pace and talked morning. much. of very I some ask Thanks the XXX of about you about the deliveries in wanted Brian, and

items for XX the supply you in you us hall pretty if bit little could it if or next And help remaining the chain? to suggests next deliver year. particular any year building deliveries First, and potential planes because delivery to supposed watch second, XX think a most of to big start about are inventory, are a you

So, to exuberant what what that for don’t we we it the both also get overly is in a, potential might terms make about sure of understand is what and that so be.

Brian West

time not numbers. be Well, to less it’s just because And I can’t than – do can’t about I right you talk that. delivery will the just satisfying really for year next I

to better. as then year, we get will the just of be always the confidence sequentially make second half improving. we And of Although half we sure still are we have first want out this will

of they their given escapes are as getting working of very we rates proud then As And share no path increases to the a consistent. the five expect as joint a fast work, steady. they the by to see over will it got they on production down is They the that category. to month been team, XX, And getting ‘XX, are the by are couple They back they be, of where obviously, that per are verification get there of that year there XX pertains the ‘XX. in they that to the have and knock And steady, them. longer They abnormal last they to big years. deal from are end are where towards have very them.

now more nothing it’s a feels And there And be to the little particular So, supply is little a worry that getting we coordinated. keep stable, XX. right better, is like major executing. a in more chain for still got

Seth Seifman

Thanks very Okay. much.

Operator

America. of from from Thank ahead. Epstein is Ron you. next Bank go And your Please question

Ron Epstein

Good morning Yes. Hi. guys.

Dave Calhoun

Hi Ron.

Ron Epstein

China. China think helpful. topic we kind so that that’s on on Maybe can delivering haven’t update aircraft and your I new how One talked there? going? And going could just sense be you on us far what’s about much is of into pretty

Dave Calhoun

Ron. Yes,

finished with goods in our that exposure, saw you at So, inventory to disclosures reduced down we probably our least to XX. the respect

the in dialogue complete. customers we were with airplanes largely our with happy is course, is Of that Everybody and return-to-service already performance. China. did The China work with the constructed very to in that respect permission the there with

not has reliability they good been we are fleet fantastic. that the of the fact, going you. for will In to getting predict lot I resume of a delivery, signs that And but am

to keep We are the have way been. we it going just managing exactly

I would that We not delivery But trade want we respect I the we XX administration do in and am been. just we customers influences. has support our way And beacon know will are the the certainly dependent China. all be our to on. airplanes like it that going to to posture and political on want We to begin it. to leave it, we just have free it, with

signals. good can getting are happen. I it We hope

on not is it. dependent guidance Our

Ron Epstein

Got it. I follow-up, And quick may. one then if maybe

a product have We development. little talked bit about

not they to that’s sending wanted thoughts how may or least Just it, guys It AXXX just get seems the it? may Airbus on is think mean. signals about your do what like to XXX and stretch going are you at

Dave Calhoun

meaningful on a going The want meaningful be do in to airplane, it’s There just change, is to with hear, a XX% probably to I I that on Transonic view product development it. think world about difference. but are flies think why just respond my the our think portfolio. front the XX%, And I better we’re I on to touched we and competitions like that has my our be don’t meaningful don’t speculation what curt We focused the I have Honestly, the we don’t It’s to with a than all as it don’t curt view, all respect competitor. interested that too I That’s That’s plan. next been game wings. answer development not based to would we that and today. it. nothing in. maybe is, really

Ron Epstein

Got it.

very you much. Thank Okay.

Matt Welch

have Louise, we one time final for question.

Operator

ahead. Please Goldman Sachs. Poponak question that And come will you. from go Thank Noah from

Noah Poponak

Hey. Good everyone. morning

Dave Calhoun

Good morning.

Noah Poponak

is had saying few, Maybe just I things talking the going the defense since the then asked. are about a The in leadership double-digit what the show with laying see and getting the the you you And the on way the follow-ups cost next of percentage compared MAX haven’t company that that been out to air you progress loaded? am or a around are business some XX to you reasonable digit milestones back-end in XXXX you or been last that end maybe checks Pricing, that talk or more that can can I are plan margin to defense of the we month year new that margin plan, after, official have about the the access mean that year. pricing a to by maybe seeing? mid-single that? out year, the Is is is up next have pre-pandemic. aircraft the low

Brian West

I last take one. the So, will

of XX. at period. level, to what we on one, XX get focused mentioned, chain get for they all in we know go the and to There ‘XX, won’t they has supply no timeframe. timeframe. guess year margins I then will preparation get today about to is We when but talk ‘XX, to next move pertains in as rate rate as But talk there confusion that breaks the And entire to the the ‘XX number breaks. to of trajectory that be in to got next specifically and want where ‘XX to more is defense those about that as about a just better want it. that it and that Dave Our XX are. better terms number, talking XX we schedule to supply a we chain And to has, are the about master XX happy

as those get mentioned, to point get one the they excited All Dave breaks, from to another. we be As we is. where have that’s are. of focus them will where stability to they most interim And will

Dave Calhoun

is our that not news good we I surprised because all are I prep And the at is am not surprised in conveying team that all am mode. those messages.

Noah Poponak

on say aircraft could you current realized anything And pricing? Okay.

Dave Calhoun

going can’t I to not specific I you numbers. – Yes, am give any

you industry by are tell and one Let a because of every we reasonably me expect for market, get as that, the probably they things in important. airplanes constrained better. of that a I margin. compete, large just big will you do these short they is say are But Boy, orders might

Noah Poponak

Okay. Appreciate all the details. Thank you.

Matt Welch

our concludes that joining. Thank you And second for earnings call. quarter

Operator

for conference And gentlemen, and conference call. does Thank our earnings Boeing’s you. today. ladies second quarter for Thank conclude that you Company’s joining XXXX

disconnect. now may You

The Boeing Company (BA) 26 Jul 232023 Q2 Earnings call transcript