BA - Earnings call transcript Q2 2024

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Operator

Thank you for standing by. Good day, everyone, and welcome to the Boeing Company's Second Quarter 2024 Earnings Conference Call. Today's call is being recorded. The management discussion and the slide presentation plus the analyst question-and-answer session are being broadcast live on Internet. [Operator Instructions] At this time, for opening remarks and introductions, I'm turning the call over to Mr. of for President Boeing Vice Welch, Investor the Relations Company. Matt Mr. go ahead. please Welch,

Matt Welch

Thank Welcome and me morning, earnings good Boeing's Chief you, and Lois, Brian and everyone. Officer. Calhoun, President am West, Welch, Executive Officer; Dave Vice call. Matt to Financial and are with President today Executive Boeing's and Chief I quarterly Boeing's

broadcast boeing.com. at a As slide and reminder, you can presentation follow today's

the SEC forward-looking involves and disclaimer risks, today's including filings goals and in described estimates beginning in Projections, the discussion our statement at of included those presentation. in the

to We also of additional refer as non-GAAP and the to Spirit as our presentation transaction you the beginning the the in disclaimers relating to release measures related at disclosures well AeroSystems earnings the presentation.

call the Dave I will over turn Calhoun. to Now

David Calhoun

and morning for Good all, Matt. us. to joining thanks Thanks,

you year. that the [ of Ortberg company ] the August announced my news this Kelly has X appointment successor commencing of as calendar saw First, the

smooth an you was conducted As for in tremendously industry. in years process. as Kelly selection next [ it. He's transition. forward to the and the the look XX to conducted to incredibly which the I confident by extent ]. their more way he It extremely he it led a know, I had respected And him conducted than of leader ensure which grateful aerospace and of in the experience Boeing. is am in Board extensive with to search working I'm Steve

systems the in upfront move way the as my strengthen we making forward. possible financials recovery are will to position as we focus that company cover my management quality Brian on I on comments remarks. best we progress the want following the our our and

sharpened multiyear of the a transparency obviously stressed As quality our The we've focus, including major systems. elements take multiple to step management been safety improve chain. leading stability We've of steps our and additional January to every of -- accident a this way. us supply path to the our on strengthen operations, company,

travel down catch up things and First, chain among to forward. control our allowing deliveries actions to supply improve our stabilize need slow and buffer work, provide we the quality and going was to

recovery accident. safe reality committed Our second of to and ensure continuing doing financial We're reflect the the work to Alaska results all the predictable. that needed Boeing world company the post be, to of quarter necessary the is

provide performance key employee and These the last plan and we our factory the we are May, safety months, and meaningful indicators supplier quality shortages, delivery that of notice our system. At comprehensive of FAA, provided include X by toward goal. performance. the to The Over ticketing quality have the which planned travelers process. of end strong our oversight continues to notes regulators the the progress and proficiency, which rollout escapes, production we rework hours, monitor will at health measures of

key KPIs, across safety. are indicators, real-time operationalized BCA insight support and provide these of employee programs All performance they our and quality to stability, established and

meet these We of the expand as our remain to KPIs and in majority seeing metrics are confident across ability we performance production. the improved

our processes, An Furthermore, accountable. limits investments: safety hold team on training, four our own culture. plan and is which down important and quality defects of key we've of eliminating importantly, our and FAA plan and control simplification by this the ourselves plan the manufacturing element doubles more established Workforce elevating

employees, shareholders seek our others from customers, to regulators, forward. and our we our move feedback from many We as continue policymakers,

had number defects and are rent transfer Wichita. the January. increased actions caught of One inspection of by before to On-site the was we and initially the that now reworked -- almost reworked took our Wichita. fuselage process caught Spirit And important Boeing inspectors in in we most we at Xx

first few significantly have same improved flow the of number Spirit over since. seen improvements the quality improvement period. reduced ever steady dramatically and this months, times fuselages rent The have While we our in from that clean in coming

important focus aircraft. including we notably, XXX-X, board our to our remains making -- with our development TIA, FAA month, on on this inspection While our began XXX-X flight factories and progress the received meet and our the cert ensure -XX can programs, type personnel authorization, XXXX. also for are the testing we Most on we customer the

put climate flight XXX-X flights, wide hours X,XXX airplane Our through fleet team the the and the X,XXX range of continue of validating flight certification safety, across and performance. testing condition. more than a has And test will regions reliability

anti-ice support for the an solution be in the MAX of family. -XX first the in will that implemented engineering aircraft for and and system certified our delivery In identified in-production addition, to engine we've XXXX -X

mature A Boeing results fixed long-term in Based quarter taking long-term Security before these development performance. until to progress we transition Space have that and future have historical for over can defense are the and contracting cautiously the learned time. remain to we've this remain Clearly, Brian on that on disappointing. our of optimistic toward comment a programs. on development more and lessons business the the performance we fixed-price prospects expected & believe We price about complete maintained phase programs bumpy all franchise Defense, discipline programs, level opportunities. of I mentioned the development we we we

solid results. remains to deliver and Global Services a Finally, continues bright spot

to have our team remains We and supporting and franchise dedicated strong the defense a commercial customers.

reshape to take of to additional made invest planned and actions it agreement is This it needed Brian, would Spirit recently an over the decades announced heavily in let our quality touch ago. correct direction, in and very to course demonstration strategic company. the AeroSystems. as to Before me on This acquire acquisition resolve a to shift is significant safety -- important and our turning

the As we have Spirit airline of customers Boeing more interest and the country and this said, the of we the employees in proposed deal best is and interest in believe flying public, broadly. the best our of

and we systems can our unify mechanics day in working and team four critical quality day and are one management our together as engineers walls, bringing ensure in manufacturing within out. By our work safety back and

I'll day. to for do you every a our comment single close employees. all with you Thank that

and our about mission, about other. our company about deeply care You each

and Your us. passion, no thank I've maybe challenging is of but over than been and it There time our commitment am future you, your of more period doubt, confident a in inspiring. are of Brian, And ever confident, is This I for to you. turn resilience I'll you. because all

Brian West

and Dave, good morning, Thanks, everyone.

of approximately value billion. let $X.X to approximately a with On transaction take $X.X the into definitive moment AeroSystems. worth acquire on planned an Spirit jumping X, results, our we all-stock July acquisition announced Before billion agreement a me in financial Spirit of total enterprise a

of expect Tulsa, of us subject mid-XXXX, augment commercial, including contemplates as satisfaction commercial well the Oklahoma facilities indicated, Airbus customary operations As to certain we Texas and transaction Wichita, would the shareholder This the portfolio. the sale of regulatory and our Spirit consisting our offerings Boeing close defense to work other packages. as Kansas, related Spirit across as materials and capabilities acquiring primarily Dallas, approvals as to aftermarket substantially operations conditions, the closing related further and . commercial all well that operations agreement

committed Spirit, in order critical the working we're continuity to programs, support defense missions. with and the to these customers ensure its Regarding to DoD

of supply critical that believe support this chain safety to allows quality and integrates and engineering capabilities, stability, manufacturing on systems. continue and reintegration builds our ultimate that for We workforces management leverages unification the

incentives is and priorities, the to of -- flying industry the safety aviation best in public. and the stakeholders, our aligning same centered quality and including Fully on all interest the customers,

All stability. of ongoing commitment safety, to demonstrates aviation this our quality and

commercial loss quarter. share Revenue per for $X.XX, the next $X on cover a of reflecting which total billion company the which volume cash the was was with $X.X losses delivery billion capital page, flow timing. I'll I'll primarily in performance billion, later. and financial deliveries working May. to unfavorable lower in the was Turning The Results development fixed expectations defense commercial delivery generally usage reflecting quarter, in and into price by quarter programs, commercial lower impacted shared line volume. Free get $XX.X the of was lower

includes in was Boeing XX.X% and reflecting minus XX Airplanes. quarter. R&D. in and product to as next X,XXX Revenue deliveries The including and primarily page, costs, billion demand our [ lineup BCA commitments highlight XXX I'll than robust the the for and Airshow for backlog was widebodies. Farnborough ], Commercial Last higher orders week's the announced quarter ended to nearly cover continue billion, we at more airplanes. -- including delivered margin over $XXX Turning airplanes, expected operating $X XXX airplanes lower the

including Now meaningful a program less airplanes more I'll to seasonality. in quarter, XX up normal despite levels programs. will with give step The key more the be color on in June July in second June. delivered or line XXX the XX

year-end. by the second our and to of gradually during first the in We've and higher we line we improvement July. and third single to move be the increased at production the digits per to production, XX rented still from XX end month June roughly the On expect half as high reactivated factory monthly quarter in in quarter

As KPI currently the paced part inspected with to Wichita. FAA operating continue the of safety production or The out the limits factory Dave near quality factory all fuselages by operating and as control is fuselages is will from be within noted, with near-term the laid fully today plan. and

as broadly More on to schedule, by we master needed supplier on manage and make adjustments inventory the continue levels. supplier based

and keep final Our ahead stability paced support supply chain work. the to of objective to remains assembly traveled minimize

customers for XXX-Xs China XX in expect as built quarter India. XX in shutting We down we prior from delivered factory. more This to the The month of most XXXX, by deliver approximately XX and value, approximately expect these of July. last still work year-end vast down majority towards to shadow airplanes ended is the and we quarter's with the

stable airplanes models, and unchanged. Regarding inventory timelines -XX XX the the and at approximately the remain certification remained levels -X

work nine other delivered issues previously. impacted in and five produced the lower per in We're although timing by On airplanes airplanes delays production, month July. delivered XXX, return delivery to The quarter per the was these by year-end. starting seat below still through plans and five expected to as the in to six program quarter, month items and quarter we the noted

required still to year. continues inventory this and which of airplanes to expect the down around shadow finish shut steadily. We delivering ended XXXX with quarter the the with rework, these progress airplanes to We by built most XX rework year-end of prior factory that

the and quarterly as lead delivery the into the we we've quarter this move and process previously program certification entry towards first FAA recent grow expect as We'll XXXX. testing. through and program, earlier Dave the in the $XXX Finally, the flight noted, continue took with as on million Inventory XXXX we the certification will trends obtained as service progress on approximately still inspection very to a line follow in month began in type as authorization to contemplated. timeline important of FAA step continue grew certification we

page, $X Boeing the next the backlog Defense & to at Force capturing award booked an Moving orders including during down Space. $X in and billion. the the MH-XXX Air for on seven quarter, $XX Revenue billion, BDS by a Army. We was margin was in billion U.S. first X minus from ended helicopters on driven X%, and BDS XX fixed-price XX.X%. quarter operating the delivered price aircraft fixed billion contracts development Chinook CH-XXF in quarter, Block and development the the including to certain losses took $X loss the U.S.

In that late to would back due margins and we of be a things. take couple a indicated step negative May,

has First, the deliberate impacted the factories ] [ Sound programs. the of derivative slowdown Puget

the KC-XXA million well on PX margin Specifically, as as on program. compression loss $XXX profitable the a Tanker

primarily T-XA, with price VC-XXB technical cost in seen and on -- to losses additional higher certain and related we've estimated inefficiencies costs fixed Second, crew, associated pressures, development and engineering requirements. commercial resulting manufacturing additional

the to impacts work we and be these about mature stabilize programs. of contracts, continue transparent to fixed nature price as Given we these

and risk mission-critical and disappointing a programs, are our development behind on customers. there's to milestones each us results, quarter ultimately these focused commitments delivering to acknowledging retiring we and complicated put While continue remain these

nation our to in continue to in The back plan single-digit to very the high unchanged. margins margin geopolitical solid, game to our the supported of environment for these the XX% range. representing demand products be approximately mid- strong performing medium single-digit to and remains the back, long Stepping threat high business allies. and get term remains confronting The core by revenue BDS our

And trends to F-XXEX the progress fighter level Force, comprised XX% satellite continue capability tighter of [ make of July. which to still aircraft we with important programs, eight primarily margin as return the the delivering and to our operating We the saw including improved standards. expect performance the quarter as roll ] portfolio initial strong its program new achieve to Air to U.S. milestone historical to underwriting in enabled contracts again we

will the products investors There's performance to confident stability levels term. execution to portfolio drive across the customer this Overall, field, long performing business that well the is we're our positioned the are and for the and strong defense well base, will recognize. return demand efforts that in our

to delivering the page, Global well sides. and both team down globally at the commercial on a Moving perform very year that and billion. up customers, the They to next deployed to defense on orders results the $XX received BGS slightly XX.X%, focused strong continued is in in Boeing Services. across compared supporting second on was Revenue billion, higher quarter, X%, was commercial last performance. margin primarily Operating backlog $X billion ended $X.X its -- strong volume.

quarter, Hainan and performance-based U.S. logistics contract service contracts FliteDeck Apache Pro Army and the BGS with secured the In an captured from Airlines Ryanair.

from XXXX. margins the operating first BGS the to matching levels the year, of half very Importantly, record deliver for continued strong

team on high at solid it and margins very up throw conversion. franchise that's mid-single-digit levels high mid-teen off The we is revenue It's free offerings, grow a IP for still and focused come. expect years capital-efficient to flow profitable, cash to terrific with set

issuance issuance. next of free new by the the partially by On $XX.X $XX reflecting quarter driven to flow I'll in debt at we use billion debt debt The the of billion, $XX.X increased new cover the Turning May, cash securities, cash balance in and to billion page, the the ended marketable offset quarter. and cash debt.

to continue remain revolving to of facilities, We undrawn. access $XX billion all credit which of maintain

these with are actions having we're quality, long-term acknowledge continue and We calendar improve actions our The to the manage safety the view. impact demonstrate flows. year business deliberate on cash and we to commitment taking a

expectations. me provide on near-term let context So additional some

take remain While in increases near-term rate prioritize as advanced BDS working near-term profitability on and additional commercial a we improve and and stability we future deliveries production our are of production as improving, improve support will headwind to will to and chain supply continue flow. timing losses weigh payments to capital Inventory deliveries cash customers. stabilize time to

to working of be quarter third pressures, expected cash. is near-term Given capital these another use

We will production expect timing impacts year. be and stabilize -- working as these capital deliveries this unwind later

for we forecasted. outlook cash flow larger previously cash of are use free the the expecting On year, a now than

flow know, And cash As up deliveries, our leverage we free is will in ramp as you business meaningful. grow. operating

the fashion. We time and we're it in are taking deliberately investing today get necessary ensure right -- a to to positioned stable and ramp to predictable more

actively as rating; main the levels in supported chain capital liquidity prioritize monitor committed We're stock fully objectives two manner remain supply mind. with the Spirit to which in an both to financing. a and acquire factory to with managing we'll sheet allow second, the time, We that our with will the to reset, and prudent First, by to and performance balance of all We'll two our objectives: over investment profile. structure liquidity grade supplement were return these needed, confident and business investment-grade our with continue aligned levels position decision

a ramp other programs are factories, Looking objectives, fashion We'll on fixed-price strong derisking defense and taking forward, to important and also on in production down progress the continue continued our stable shutting results to and we're ensure now time factories shadow BCA years that make come. the the to the including building to services. maturing positioned development for

XXXX be we're because much a will stronger Entering now. in work of position the doing

XX next see the double fundamentals market almost the XX,XXX those noted new demand. this about commercial are full of there expect are the robust with for month, to we As years, outlook we to fleet continue demand nearly replacement half airplanes the global and delivered in published as where

our portfolio on long-term with and serve, manage along built view confidence and we safety, defense a our our quality customers. commercial we business delivering product the underpin with The for today as markets

it open let's that, for up questions. With

Operator

Instructions] of come first the will question Bernstein. Harned, from And our [Operator Doug line

Douglas Harned

the because X to XXX. wanted I that the for inventory a understand end, for process both the MAX the XXX On XXX month you're appears and about little month I bit a saying you're it expect suppliers on so the the production this build. and inventory and it build, X -- supplying have a off having And get process, so from to XX on you this line of difficult of about both ramp other coming difficulty the the given Can It's the managing China end, and process as out would to the you're then talk to or now? seats, inventory you you think that inventory how well. things with on of ends, some right there. on the production

Brian West

Yes. Thanks, Doug.

think investment with. So front going the make The we question, this would inventory us way the for as XXX I to build the start in is we right forward, were on of about stability.

do in ZIP we we'll May that Our in July, were delivery April, rates code. the somewhere mid-teens. in XX. June,

So we rent stabilize forward in continue are seeing get and to better. move we and as demonstrated progress to

evidence move the of inventory the will continue and there, is through course, to we unwind. that the So begin to progress and, as we half then second expect

But progress. in mentioned, predicated is moving Renton I continued very deal to resuming China. as a for that the it's get deliveries big well really to on as us And as third line

is indications moving making the direction, in that those progress all So and production the right suggest will unwind. inventory we're

similarly, In XX, had second July, already we've I six. nine the quarter, we deliveries. On got as about mentioned,

get So that got to inventory plan that but that in constraints a as real get We've performance improves. progress chain get production And as we five having per as better. end away some we'll liquidate year. you And game again, Those they're do good to of constraints, going believe will the we place. to aren't the supply month again, immediately, going to go despite mentioned.

Douglas Harned

about have fuselage on bottleneck Spirit. that. the I from bottleneck, -- I can The just follow believe, If chief deliveries being all up the you -- talked

seem assembly was didn't It it does bottleneck before. on, like bring an as you the work? -- So that that line third how this was

capacity limiting Spirit you better? with that your So is how where a now at help -- point is does that

Brian West

and We And will but team. very job. half has that be done So believe way nice their of got steady to the get We've that a nice able we'll it very we fill XX we a watch back to Dave Spirit year. we Pat that the up. get They're had month as we improvement. closely, confidence, per line, ramping believe that be able and third to to the

David Calhoun

third Doug, up issues also we three with two opposed end thing gives helps close nonconformance it I us across somewhere. flexibility to because add, line, lines as having the only is unforeseen us to the would The if it

production. So we and are simply trying steady our appear to accommodate that to things overcapacitize

Operator

from Our from next Arment Peter Baird. is question

Peter Arment

calling some that important. they're the out Obviously, for talking thanks KPIs Dave, were all of super you about.

you're increases about said you You employee getting at on metrics. to is there so is think any real-time what around there back for anything get you're give metrics far or shortages and a can some rate of of whether it's ultimately these -- or on the seeing trying that in rate some XX. on proficiency? the tent just progress, what insights that notice the escapes Just the long us that that's is the color pole Maybe getting to confidence holding you

David Calhoun

better thanks. gets slow Peter, down. you Every metric when things

to I anybody. metric from yes, step straightforward that slow benefits to things was very want took we kid very The every don't So deliberate, and it down, moment.

the And defects everything. less than prior have down reason half work, And had line. in would clean being get a you step taken traveled move fuselage our improvement, the traveled change it we've view, reduces you work, to it float when we the don't have the measure I a big in of the is view have don't production think the of state, work that through my So moving we time way team is one. course, and its traveled

don't that You any of have stuff.

clean now regime we're a at step we what know, as So and a getting of of you stage we've we're were quarters, and in X where, change a front, fuselages getting that beneficiary mix only on prior first the the where managing we're been the now.

We'll metrics. and for anyway, of when are kilt moving going those we out big the to get move So proxy things one know forward. that's the way are on of any forward

all traveled as of any are and announced stop back the year-end. place. to got And cannot think keep scenario down too don't our we've where I from us we the our a far on scenario of the lot Probably just work controls a to expectations is ourselves the we eye them that one allow in approach where traveling line. we'll we going get plans into we're things

So that won't happen.

Operator

from from is Our Sheila next Jefferies. question Kahyaoglu

Sheila Kahyaoglu

that just for which Brian, billion, could you RC X and what's if this QX the suggesting QX? and below about below on cash the falls generation? cadence And $XX you're cash And do one's what's free Maybe about can? the quarters, or think balance? How flow think we in cash we you. buffer tapping cash to usage next what maybe you -- of if as advances inventories if think do the X over is about

Brian West

Yes.

So Sheila, for question. sure. Thanks, the

advances drag So inventory been meaningful been have it's the and the well in working second deliveries quarter, first as capital and the as has the pretty as lower.

albeit be Now as the will improve. deliveries. gradually delivery third timing advanced payments will it additional which, going the that capital with headwind a we're to they that time And are and applying headwind, seeing advances see be as Inventory smaller lowering the a want quarter over in performance to excess again, was customers improve second an And a similar advanced will be working one. drag first is still quarter. and

to got just that. that all we've unwind will start the and the do on the once to going it deal factory to timing take So advances moves we us delivering, with both But time inventory. that and is of because

have going quarter, also XX in that fourth have the tanker deliveries. We're but have we headwinds. going Now quarter, working capital And the I'd we real expect. third working we're be we're going have to capital to better, that these will deliveries mentioned to still improvement. In stronger

move improved. and to get deliver these ability the it and on getting meaningful it's can quarter-to-quarter So flows -- predicated stable factory cash and all fairly the our

half So the thinking back on that's we're the about cash. way

Sheila Kahyaoglu

What's the cash with? balance you comfortable feel

Brian West

of little in any be front comfortable. if at bit we said kind of given always moment, us, we've moves but a given XX, can So what's that

at a we're there's looking question broader liquidity. around constantly think I

You with we did in what May. that saw

the transaction. treated that in we saw how You Spirit

So end right of year. and comfortable we're now, to with get the we're we the at how where

Operator

The from Research. next question Wolfe is from Myles Walton

Myles Walton

categorize on Maybe Can you until the prepayments the that. they can are profile see basically to some current deferring some up on payments? You advanced abnormality to briefly of comment the are applying and better Brian, payments previous those follow you their mentioned advances? on divot? you in overworked in at you actual are recovery, therefore, a term? in if an where past Have you you performance. and it some undercollecting now Are point near the beneficial we're will,

Brian West

So the your they that do as question. both, people are are people answer PDPs to the We as schedule stable. have well delivery excesses delivery applying get -- that withholding more until structure

pullback So you begin saw it's when quarter in the balance. of that that predictability, will what advance to the about unwind. we balance, a we happening we continue. Those both and second that deliver in expect half to to billion on in two that the start are all with both. I $X things had mean, But

timing. it's And quarters again, timing deliveries is on a over best in position. to our really and get this predicated our So all, guess, it's is different ability

David Calhoun

still shortage airplanes demand And the opportunity us and the is of for scenario. overarching the

want soft of is that, But get to So fundamental get people us provides management, short-term their to something, all everybody change. is so trying strong accommodate. the understand can to demand This this the market isn't money a are that trying they create get we're airplanes we and plane. to still for which so a sort incentive where for the in spot

Myles Walton

offset $XXX XXXX it million less quarter Or seeing? inventory that growth, advances XXXX to more million? performance net a is on the offset we're $XXX $XXX the that million or is to on And material that

Brian West

that inventory this million advance the the real that investment specifically. is $XXX with, meaningful the again, It's into at moment. service. we're the not inventory entry was one really The the dealing which, is The is in

Operator

is next from from David The Strauss Barclays. question

David Strauss

$XX full That's put Brian, or a burn order cash closer I billion you burn? the guess the are fine $X to order looking a at the to a point it's first know year, question. number I But difficult burn. a billion for on

again And your more you equity prioritizing rating offering? you then having allow do that issue the To agency grade you you've obviously you're about the debt investment rating. XG? an potentially are key need said Or to to to you extent funding, you expect do in thinking

Brian West

moment not Yes, at smart -- XX. whether X David, I'm to this right or say just it's

know, as our pretty in deliveries, ramp we you As balance. it's movement cash meaningful

get and in as trying So be through we usage more working as And move a our we're to steer right know It I'm we going to specific. we that's through will it. go work the away direction. to way the forward, elements, from timing going

of we debt the what front like agencies. against it priority. regularly free all with to ability operating XXXX the that to we tell monitor rating we #X performance up maturities conversations April we've were our do able and flow protect by since that absolute to in to are the agencies, rating, regular is question takes are on decision. the if bump terms rating And liquidity, consistent company, And been and In grade investment around They, the the as generate three financing everyone, Spirit evidenced period. our said or focused reduction. what us, And of all cash on the we to them we consistently

ready, priority. we rating we So stay is That stay the agile.

Operator

from Jason is question next Gursky Citigroup. with The

Jason Gursky

I program I inventory, the just a driven that's leading want a then expected to from to course. bit a XXX Brian that by quarters little the to And know about perspective lot being you the and flow on delivery. of burn talk cash to of -- go a in future back initial up and maybe certification for And ask minute.

there and that in what of what from point we So as expecting about and side talk you are of on done maybe that production 'XX assuming what the started? thinking 'XX you're out XXXX on 'XX, that certification back well, inventory that get deliveries given get you and burn the kind looks the time deliveries at frame, this in get time of first the out backlog, and like kind frame in

Brian West

show good on we the is is question had last part some performance the front. just pretty robust the the the backlog the on terrific air Well, news and of of wide-body

going I used of say, programs. the the look cash to the service. XXXX entry similar is in all We cash other prior development to general, would to in

the That's is driven that been build You've million prepare by about And all I seen that. that entry consistent. service. this as for talked and $XXX quarter. we natural the inventory

as it we will and that after high to customers development normal the year turn Now confidence by backlog out. it's positive begin in know underwritten that going programs ramp. very that to deliveries out in play about that that EIS airplane. play a a And And also most robust love yes, the way a be we will have

pretty feel and these the term, timing. good, a we investments payoff. to over And are just great be So going it's long and

Operator

our And from Morgan is from Kristine question next Stanley. Liwag

Kristine Liwag

the How update on were are? the apart what union can strike? are labor And operating you in you case an negotiations, are on union in economics? place you On contingencies far in IAM the to where provide go

David Calhoun

be be and that we to early not early on like not takes our the We strike want definitely development the analysis we're we're in afraid -- make out well ASKs And of I that employees call planning I because for big. I and will starters. a respect puts wage too people. like with respect to We too process. know the framework. this can't the process. ASKs to big. Well, gap in it's to really a will investments treat to know We're training with

you is I as until we negotiation. -- know, to by And that work hard strike. as will Kelly this not the much. get we backyard to anyway, to and time the be But have a going I last you in do as just as well Stephanie's don't play, not can, in week know as we're So

than strike. to to it predict. to tell not intent and I'll So try at Other have expressed you, to have not just an that we leave

Operator

Rumohr The TD von from Cai is next question from Cowen.

Cai Von Rumohr

July remained So looked production August, in have depressed. pretty like you basically In it vacations.

should great? recovery how So looks in isn't it think and about we because terms August like of deliveries the production that

your producing they're they're for than related it because are you and going yet suppliers And are pull number talking asking there so who the you are advances. at a you keeping don't on -- higher rates about of inventory

then a lifeline of So maybe about them suppliers can have so with terms two up -- some back produce do So issues. you to that giving won't advances what those and cut in what yes, they to are so continue ramp having later? talk to your of

Brian West

this your the being And likely again, bear low the the digit. of of mind, steady to part in like mid-XXs we're beginning June, very, the going through terms of and production, the kind of July we're year, will XXX were we're ]. Line So ]. very X brought around now resumption single ramps, [ nice in where ramp predicated of getting And a to in to August then rate on question But have [ back a year, we keep improvement an China also that. half be successful ahead point

for got got labor, we've up we've all it's execute that's us see, continue to ramp. to lined the we've the fuselages, improve to we go everything So delivery the And inventory, got it. on our us

hit got our real So a progress we that year. exit and ability says we've month to we proof as we've good about XX the per the feel made, points got we've

have of chain. that predictable to course year Probably with way in we're when that trying own across supply And trying of the our of the one. make do sure forward, with the certain here move careful through a do make one in way factory, the us. moves and supply this by unique. there the all there. we Spirit supply best stability In we the is the to to it going protect we're that right chain, chain and And It's example. we do protect very to We're stable, that's we so they're terms very stability discussion

gives delivering We have start way Nothing resources. working and these through airplanes our our pause all customers. just see us got that to we and assets for the We've concern. or any

Cai Von Rumohr

-- But to move collectively, if so advances have of you up? those add suppliers, your peaked? continuing they Or are all to

Brian West

There's material really a Cai. change, not

contemplated Here and material some be nothing there nothing differences, forward that's and might our there, but not look. in

Operator

And next our from question Seifman JPMorgan. from is Seth

Seth Seifman

that think question. last When on ability through which any close? to mid-XXXX, you close their on you themselves ask to Spirit of about -- contemplating additional having through Wanted mentioned -- this to to the in transaction Spirit, fund you action are is the fund

characterize Spirit ramp can investment part of Spirit when plan to that you investment secondly, prepare into the ahead? when rate Spirit plan quantitatively qualitatively Boeing, you think then for is or us And to Boeing the what tell for about

Brian West

Spirit not speak for to be I'd careful too much. So

hand, On the well. other they're performing

that clean coincide continue that perform confidence got to get to them expect and We helps fuselages we've delivery schedule. to well, we're going with our

we pretty performance. about good feel So where and they sit continued their

at there moment. us So gives nothing concern the any

we the long-term terms really to will And We bashful Boeing of acquisition. shy or investing, with them needed and bringing for of is look we about any towards in close. that in And stability. We this wait to front, good we world. are feel not that into what in can't forward forward on closing us order be investments look front

Operator

is Goldman from next Sachs. question from Poponak Noah Our

Noah Poponak

talk in about reset role right kind a an had the made? in to leadership ability Pat, out the should bit now roles a bit. you other about a the the know how more on industry, you here? Stephanie, potential as hit of think And I but button a of middle the Kelly of move hit decisions of transitions versus that -- for the we experience Can you've lot ground you're forward of running? for has operating What's little the lot

David Calhoun

crack, I'll take made perfectly Well, to of. divulge that decision. this going not aware not Board anything a I'm I'm The and

for seasoned a the and I I Over know remarkable, side, experience do buy knows side, I've He's with a landed supply Kelly. on surfaced around the discussions. of think the months, they've end because the of X names the he's the day, the not He And people bear. around thorough I been last couple of regulatory side, got experience. the when number what call be called immediately living Kelly. pretty that at they bring the a he'll about to industry, we and operator happier could Kelly and

about really process, so want So that. kid the to don't in I I decision-making you wasn't

view, where place. strong On in it hand, very, my the very a ended up is, other

team rest get in to knows He and is everything coming folks. way was big a try a Kelly, he's knows around just stable et a about we think with cetera. a Kelly to full respect his lot he the And quite recovery in their of he in we're And to notion then put the going he's move informed want the to work. And anyway, change going got forward. on with got to of guess that team, my and we arms this support complete at to full I don't And and mode. well and leadership Stephanie Boeing, well recovery mode,

I me a don't don't much I to And anyway, add that's Brian So intended is overhaul. think can talking. this. think large be leadership this But to

Noah Poponak

supply ahead of Okay. dollars Brian, billions just of specifically a from quick much hold that number you one. or stay you? Do you the inventory airplanes whether number how a chain have of having

Brian West

we to It's forward not able there good It's timing. not disclose. for right flow This this you number deliver immaterial. good do we that in look which a and predictably. that to our see a it driver, That's big is, The that airplanes total. as being we unwind statement in the more is the customers, news will is news is cash

Matt Welch

final one question. for time have we Lois,

Operator

that Capital And from Ken Markets. will RBC from come Herbert

Kenneth Herbert

-X deicing particular the any you're granularity but next know more color on wondered, if for bit about those I certification, in more timing think of you and it's maybe the we I you Dave, the timing variants milestones how -XX. certification little on now on the some a that MAX? two give can confident the just on can provide and

David Calhoun

the certification the Then complete we're that then and really, we're complete sure probably got the and off. get And that before certification But going literally is the that of et engineering to one test it level tests, work it to we've engineering milestone the work Well, make well end point. choke that confidence passes high the discrete complete is to cetera. item the of year. through that and is the

other don't get of have issues out. think we prove than to with any to I it other and sort contend done there that are that

Kenneth Herbert

So first half 'XX realistic? sounds

David Calhoun

to they're realistic me. Sounds charge. in But

Matt Welch

everybody, call. for Lois, our that you right. Thank All concludes joining.

Operator

Thank Thank Boeing call. the Earnings joining Conference you. Second concludes you Company Call. That Quarter XXXX the for

The Boeing Company (BA) 31 Jul 242024 Q2 Earnings call transcript