Boeing Company - Final Results

Boeing Reports Fourth Quarter Results ARLINGTON,Va.,Jan. 28, 2025-- Fourth Quarter 2024 · Finalized the International Association of Machinists and Aerospace Workers (IAM) agreement and resumed production across the 737, 767 and 777/777X programs · Financials reflect previously announced impacts of the IAM work stoppage and agreement, charges for certain defense programs, and costs associated with workforce reductions announced last year · Revenue of $15.2 billion, GAAP loss per share of ($5.46) and core (non -GAAP)* loss per share of ($5.90) · Operating cash flow of ($3.5) billion; cash and marketable securities of $26.3 billion Full Year 2024 · Delivered 348 commercial airplanes and recorded 279 net orders · Total company backlog grew to $521 billion, including over 5,500 commercial airplanes Table 1. Fourth Full Year Summary Quarter Financial Results (Dollars in 2024 2023 Change 2024 2023 Change Millions, except per share data) Revenues $15,242 $22,018 (31)% $66,517 $77,794 (14)% GAAP (Loss)/earning ($3,770) $283 NM ($10,707) ($773) NM s from operations Operating (24.7) % 1.3 % NM (16.1) % (1.0) % NM margins Net loss ($3,861) ($30) NM ($11,829) ($2,242) NM Basic loss ($5.46) ($0.04) NM ($18.36) ($3.67) NM per share Operating ($3,450) $3,381 NM ($12,080) $5,960 NM cash flow Non-GAAP* Core ($4,042) $90 NM ($11,811) ($1,829) NM operating (loss)/earning s Core (26.5) % 0.4 % NM (17.8) % (2.4) % NM operating margins Core loss per ($5.90) ($0.47) NM ($20.38) ($5.81) NM share *Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures." The Boeing Company [NYSE: BA] recorded fourth quarter revenue of $15.2billion, GAAP loss per share of ($5.46) and core loss per share (non-GAAP)* of ($5.90) (Table 1) primarily reflecting previously announced impacts of the IAM work stoppage and agreement, charges for certain defense programs, and costs associated with workforce reductions announced last year. Boeing reported operating cash flow of ($3.5)billion and free cash flow of ($4.1) billion (non -GAAP)*. "We made progress on key areas to stabilize our operations during the quarter and continued to strengthen important aspects of our safety and quality plan," said Kelly Ortberg, Boeing president and chief executive officer. "My team and I are focused on making the fundamental changes needed to fully recover our company's performance and restore trust with our customers, employees, suppliers, investors, regulators and all others who are counting on us." Table 2. Cash Fourth Full Year Flow Quarter (Millions) 2024 2023 2024 2023 Operating ($3,450) $3,381 ($12,080) $5,960 cash flow Less ($648) ($431) ($2,230) ($1,527) additions to property, plant & equipment Free cash ($4,098) $2,950 ($14,310) $4,433 flow* *Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures." Operating cash flow was ($3.5) billion in the quarter reflecting lower commercial deliveries, as well as unfavorable working capital timing, primarily driven by the IAM work stoppage (Table 2). Table 3. Quarter Cash, End Marketable Securities and Debt Balances (Billions) 4Q 2024 3Q 2024 Cash $13.8 $10.0 Marketable $12.5 $0.5 securities1 Total $26.3 $10.5 Consolidated $53.9 $57.7 debt 1Marketable securities consist primarily of time deposits due within one year classified as "short-term investments." Cash and investments in marketable securities totaled $26.3 billion, compared to $10.5 billion at thebeginning of the quarter,primarily driven by a $24 billion capital raise partially offset by free cash flow usage and debt repayment in the quarter (Table 3). Debt was $53.9 billion, down from $57.7 billion at the beginning of the quarter, driven by the early repayment of a $3.5 billion bond originally maturing in 2025. The company maintains access to credit facilities of $10.0 billion, which remain undrawn. Total company backlog at quarter end was $521 billion. Segment Results Commercial Airplanes Table 4. Fourth Full Commercial Quarter Year Airplanes (Dollars 2024 2023 Change 2024 2023 Change in Millions) Deliveries 57 157 (64)% 348 528 (34)% Revenues $4,762 $10,481 (55)% $22,861 $33,901 (33)% (Loss)/earn ($2,090) $41 NM ($7,969) ($1,635) NM ings from operations Operating (43.9) % 0.4 % NM (34.9) % (4.8) % NM margins Commercial Airplanes fourth quarter revenue of $4.8billion and operating margin of (43.9) percent reflect the previously announced impacts associated with the IAM work stoppage and agreement including lower deliveries and pre-tax charges of $1.1 billion on the 777X and 767 programs (Table 4). The 737 program resumed production in the quarter and plans to gradually increase production rate. The 787 program exited the year at a production rate of five per month and recently announced plans to expand South Carolina operations. In January, the 777X program resumed FAA certification flight testing, and the company still anticipates first delivery of the 777-9 in 2026. Commercial Airplanes booked 204 net orders in the quarter, including 100 737-10 airplanes for Pegasus Airlines and 30 787-9 airplanes for flydubai. Commercial Airplanes delivered 57airplanes during the quarter and backlog included over5,500 airplanes valued at $435 billion. Defense, Space& Security Table 5. Fourth Full Defense, Quarter Year Space & Security (Dollars 2024 2023 Change 2024 2023 Change in Millions) Revenues $5,411 $6,746 (20)% $23,918 $24,933 (4)% Loss from ($2,267) ($101) NM ($5,413) ($1,764) NM operations Operating (41.9) % (1.5) % NM (22.6) % (7.1) % NM margins Defense, Space & Security fourth quarter revenue of $5.4 billion and operating margin of (41.9) percent reflect the previously announced pre-tax charges of $1.7 billion on the KC-46A, T-7A, Commercial Crew, VC-25B and MQ-25 programs. In January, the U.S. Air Force announced an updated acquisition approach for the T-7A Red Hawk that allows the company to provide a production-ready configuration to the customer prior to low-rate initial production, which better supports the operational needs of the customer and reduces future production risk. During the quarter, Defense, Space & Security captured an award from the U.S. Air Force for 15 KC-46A Tankers, secured an order for seven P-8A Poseidon aircraft from the U.S. Navy, and delivered the final T-7A Red Hawk engineering and manufacturing development aircraft to the U.S. Air Force. Backlog at Defense, Space & Security was $64 billion, of which 29 percent represents orders from customers outside the U.S. Global Services Table 6. Global Services Fourth Quarter Full Year (Dollars in Millions) 2024 2023 Change 2024 2023 Change Revenues $5,119 $4,849 6% $19,954 $19,127 4% Earnings from operations $998 $842 19% $3,618 $3,329 9% Operating margins 19.5 % 17.4 % 2.1 pts 18.1 % 17.4 % 0.7 pts Global Services fourth quarter revenue of $5.1 billion and operating margin of 19.5 percent reflect higher commercial volume and mix. During the quarter, Global Services secured awards for C-17 sustainment and a contract for F-15 Japan Super Interceptor upgrade services from the U.S. Air Force. Additional Financial Information Table 7. Fourth Full Additional Quarter Year Financial Information (Dollars in 2024 2023 2024 2023 Millions) Revenues Unallocated ($50) ($58) ($216) ($167) items, eliminations and other Loss from operations Unallocated ($683) ($692) ($2,047) ($1,759) items, eliminations and other FAS/CAS $272 $193 $1,104 $1,056 service cost adjustment Other $432 $308 $1,222 $1,227 income, net Interest and ($755) ($600) ($2,725) ($2,459) debt expense Effective 5.7 % (233.3) % 3.1 % (11.8) % tax rate Unallocated items,eliminations and other primarily reflects timing of allocations. Non-GAAP Measures Disclosures We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company's ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided: Core Operating Earnings/(Loss), Core Operating Margin and Core Earnings/(Loss) Per Share Core operating earnings/(loss) is defined as GAAPEarnings/(loss) from operationsexcluding theFAS/CAS service cost adjustment.TheFAS/CAS service cost adjustmentrepresents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as Core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAPDiluted earnings/(loss) per shareexcluding the net earnings/(loss) per share impact of theFAS/CAS service cost adjustmentandNon-operating pension and postretirement expenses. Non -operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings/(loss), core operating margin and core earnings/(loss) per share for purposes of evaluating and forecasting underlying business performance. Management believes these core measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is provided on page 12 and 13. Free Cash Flow Free cash flow is GAAPoperating cash flowreduced by capital expenditures forproperty, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 for a reconciliation of free cash flow to the most directly comparable GAAP measure, operating cash flow. Caution Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward -looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. Forward-looking statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, production quality issues, commercial airplane production rates, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the U.S. government, as well as significant delays in U.S. government appropriations; (5) our dependence on our subcontractors and suppliers, as well as the availability of highly skilled labor and raw materials; (6) work stoppages or other labor disruptions; (7) competition within our markets; (8) our non-U.S. operations and sales to non -U.S. customers; (9) changes in accounting estimates; (10) our pending acquisition of Spirit AeroSystems Holdings, Inc. (Spirit), including the satisfaction of closing conditions in the expected timeframe or at all; (11) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures, including anticipated synergies and quality improvements related to our pending acquisition of Spirit; (12) our dependence on U.S. government contracts; (13) our reliance on fixed-price contracts; (14) our reliance on cost-type contracts; (15) contracts that include in-orbit incentive payments; (16) management of a complex, global IT infrastructure; (17) compromise or unauthorized access to our, our customers' and/or our suppliers' information and systems; (18) potential business disruptions, including threats to physical security or our information technology systems, extreme weather (including effects of climate change) or other acts of nature, and pandemics or other public health crises; (19) potential adverse developments in new or pending litigation and/or government inquiries or investigations; (20) potential environmental liabilities; (21) effects of climate change and legal, regulatory or market responses to such change; (22) credit rating agency actions and our ability to effectively manage our liquidity; (23) substantial pension and other postretirement benefit obligations; (24) the adequacy of our insurance coverage; and (25) customer and aircraft concentration in our customer financing portfolio. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Contact: InvestorRelations: Matt Welch or David DufaultBoeingInvestorRelations@boeing.com Communications: Peter Pedrazamedia@boeing.com The Boeing Company and Subsidiaries Consolidated Statements of Operations (Unaudited) Twelve Three months months ended ended December December 31 31 (Dollars in 2024 2023 2024 2023 millions, except per share data) Sales of $53,227 $65,581 $11,901 $18,920 products Sales of 13,290 12,213 3,341 3,098 services Total revenues 66,517 77,794 15,242 22,018 Cost of products (57,394) (59,864) (14,010) (16,724) Cost of services (11,114) (10,206) (2,821) (2,597) Total costs and (68,508) (70,070) (16,831) (19,321) expenses (1,991) 7,724 (1,589) 2,697 Income from 71 46 12 1 operating investments, net General and (5,021) (5,168) (1,398) (1,535) administrative expense Research and (3,812) (3,377) (836) (881) development expense, net Gain on 46 2 41 1 dispositions, net (Loss)/earnings (10,707) (773) (3,770) 283 from operations Other income, 1,222 1,227 432 308 net Interest and (2,725) (2,459) (755) (600) debt expense Loss before (12,210) (2,005) (4,093) (9) income taxes Income tax 381 (237) 232 (21) benefit/(expense) Net loss (11,829) (2,242) (3,861) (30) Less: net (12) (20) 4 (7) (loss)/earnings attributable to noncontrolling interest Net loss ($11,817) ($2,222) ($3,865) ($23) attributable to Boeing shareholders Less: Mandatory 58 58 convertible preferred stock dividends accumulated during the period Net loss ($11,875) ($2,222) ($3,923) ($23) attributable to Boeing common shareholders Basic loss per ($18.36) ($3.67) ($5.46) ($0.04) share Diluted loss per ($18.36) ($3.67) ($5.46) ($0.04) share Weighted average 647.2 606.1 718.1 609.5 diluted shares (millions) The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited) (Dollars in December December millions, 31 31 except per 2024 2023 share data) Assets Cash and cash $13,801 $12,691 equivalents Short-term and 12,481 3,274 other investments Accounts 2,631 2,649 receivable, net Unbilled 8,363 8,317 receivables, net Current 207 99 portion of financing receivables, net Inventories 87,550 79,741 Other current 2,965 2,504 assets, net Total current 127,998 109,275 assets Financing 314 860 receivables and operating lease equipment, net Property, 11,412 10,661 plant and equipment, net of accumulated depreciation of $22,925 and $22,245 Goodwill 8,084 8,093 Acquired 1,957 2,094 intangible assets, net Deferred 185 59 income taxes Investments 999 1,035 Other assets, 5,414 4,935 net of accumulated amortization of $1,085 and $1,046 Total assets $156,363 $137,012 Liabilities and equity Accounts $11,364 $11,964 payable Accrued 24,103 22,331 liabilities Advances and 60,333 56,328 progress billings Short-term 1,278 5,204 debt and current portion of long-term debt Total current 97,078 95,827 liabilities Deferred 122 229 income taxes Accrued 2,176 2,233 retiree health care Accrued 5,997 6,516 pension plan liability, net Other long 2,318 2,332 -term liabilities Long-term debt 52,586 47,103 Total 160,277 154,240 liabilities Shareholders' equity: Mandatory 6 convertible preferred stock, 6% Series A, par value $1.00 - 20,000,000 shares authorized; 5,750,000 shares issued; aggregate liquidation preference $5,750 Common stock, 5,061 5,061 par value $5.00 - 1,200,000,000 shares authorized; 1,012,261,159 shares issued Additional 18,964 10,309 paid-in capital Treasury (32,386) (49,549) stock, at cost - 263,044,841 and 402,746,136 shares Retained 15,362 27,251 earnings Accumulated (10,915) (10,305) other comprehensive loss Total (3,908) (17,233) shareholders' deficit Noncontrolling (6) 5 interests Total equity (3,914) (17,228) Total $156,363 $137,012 liabilities and equity The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Twelve months ended December 31 (Dollars in 2024 2023 millions) Cash flows-operating activities: Net loss ($11,829) ($2,242) Adjustments to reconcile net loss to net cash (used)/provided by operating activities: Non-cash items - Share-based 407 690 plans expense Treasury shares 1,601 1,515 issued for 401(k) contribution Depreciation 1,836 1,861 and amortization Investment/asset 112 46 impairment charges, net Gain on (46) (2) dispositions, net 777X and 767 4,079 reach-forward losses Other charges 528 3 and credits, net Changes in assets and liabilities - Accounts (37) (128) receivable Unbilled (60) 321 receivables Advances and 4,069 3,365 progress billings Inventories (12,353) (1,681) Other current (16) 389 assets Accounts (793) 1,672 payable Accrued 1,563 779 liabilities Income taxes (567) 44 receivable, payable and deferred Other long-term (329) (313) liabilities Pension and (959) (1,049) other postretirement plans Financing 512 571 receivables and operating lease equipment, net Other 202 119 Net cash (12,080) 5,960 (used)/provided by operating activities Cash flows - investing activities: Payments to (2,230) (1,527) acquire property, plant and equipment Proceeds from 49 27 disposals of property, plant and equipment Acquisitions, (50) (70) net of cash acquired Proceeds from 124 dispositions Contributions (13,856) (16,448) to investments Proceeds from 4,743 15,739 investments Supplier notes (694) (162) receivable Repayments on 40 supplier notes receivable Purchase of (88) distribution rights Other (11) 4 Net cash used (11,973) (2,437) by investing activities Cash flows - financing activities: New borrowings 10,161 75 Debt repayments (8,673) (5,216) Common stock 18,200 issuance, net of issuance costs Mandatory 5,657 convertible preferred stock issuance, net of issuance costs Stock options 45 exercised Employee taxes (83) (408) on certain share-based payment arrangements Other (53) 17 Net cash 25,209 (5,487) provided/(used) by financing activities Effect of (47) 30 exchange rate changes on cash and cash equivalents Net 1,109 (1,934) increase/(decrea se) in cash & cash equivalents, including restricted Cash & cash 12,713 14,647 equivalents, including restricted, at beginning of year Cash & cash 13,822 12,713 equivalents, including restricted, at end of period Less restricted 21 22 cash & cash equivalents, included in Investments Cash & cash $13,801 $12,691 equivalents at end of year The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited) Twelve Three months months ended ended December December 31 31 (Dollars in 2024 2023 2024 2023 millions) Revenues: Commercial $22,861 $33,901 $4,762 $10,481 Airplanes Defense, Space 23,918 24,933 5,411 6,746 & Security Global 19,954 19,127 5,119 4,849 Services Unallocated (216) (167) (50) (58) items, eliminations and other Total revenues $66,517 $77,794 $15,242 $22,018 (Loss)/earnings from operations: Commercial ($7,969) ($1,635) ($2,090) $41 Airplanes Defense, Space (5,413) (1,764) (2,267) (101) & Security Global 3,618 3,329 998 842 Services Segment (9,764) (70) (3,359) 782 operating (loss)/earnings Unallocated (2,047) (1,759) (683) (692) items, eliminations and other FAS/CAS 1,104 1,056 272 193 service cost adjustment (Loss)/earnings (10,707) (773) (3,770) 283 from operations Other income, 1,222 1,227 432 308 net Interest and (2,725) (2,459) (755) (600) debt expense Loss before (12,210) (2,005) (4,093) (9) income taxes Income tax 381 (237) 232 (21) benefit/(expens e) Net loss (11,829) (2,242) (3,861) (30) Less: net (12) (20) 4 (7) (loss)/earnings attributable to noncontrolling interest Net loss ($11,817) ($2,222) ($3,865) ($23) attributable to Boeing shareholders Less: 58 58 Mandatory convertible preferred stock dividends accumulated during the period Net loss (11,875) (2,222) (3,923) (23) attributable to Boeing common shareholders Research and development expense, net: Commercial $2,386 $2,036 $534 $498 Airplanes Defense, Space 917 919 189 267 & Security Global 132 107 29 23 Services Other 377 315 84 93 Total research $3,812 $3,377 $836 $881 and development expense, net Unallocated items, eliminations and other: Share-based $171 $62 $53 $95 plans Deferred (114) (188) (14) (117) compensation Amortization (93) (95) (23) (24) of previously capitalized interest Research and (377) (315) (84) (93) development expense, net Eliminations (1,634) (1,223) (615) (553) and other unallocated items Sub-total (2,047) (1,759) (683) (692) (included in Core operating loss) Pension 811 799 203 136 FAS/CAS service cost adjustment Postretirement 293 257 69 57 FAS/CAS service cost adjustment FAS/CAS 1,104 1,056 $272 $193 service cost adjustment Total ($943) ($703) ($411) ($499) The Boeing Company and Subsidiaries Operating and Financial Data (Unaudited) Deliveries Twelve months ended Three months ended December 31 December 31 Commercial Airplanes 2024 2023 2024 2023 737 265 396 36 110 747 - 1 - - 767 18 32 3 15 777 14 26 3 9 787 51 73 15 23 Total 348 528 57 157 Defense, Space & Security AH-64 Apache (New) 16 20 6 3 AH-64 Apache (Remanufactured) 34 57 10 19 CH-47 Chinook (New) 4 11 2 3 CH-47 Chinook (Renewed) 9 9 2 2 F-15 Models 14 9 4 3 F/A-18 Models 11 22 6 6 KC-46 Tanker 10 13 - 9 MH-139 6 2 3 1 P-8 Models 4 11 - 4 T-7A Red Hawk 2 3 1 2 Commercial Satellites 2 5 2 2 Total1 112 162 36 54 1Deliveries of new-build production units, including remanufactures and modifications Total backlog(Dollars in millions) December 31 December 31 2024 2023 Commercial Airplanes $435,175 $440,507 Defense, Space & Security 64,023 59,012 Global Services 21,403 19,869 Unallocated items, eliminations and other 735 807 Total backlog $521,336 $520,195 Contractual backlog $498,802 $497,094 Unobligated backlog 22,534 23,101 Total backlog $521,336 $520,195 The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margin, and core loss per share with the most directly comparable GAAP financial measures of loss from operations, operating margin, and diluted loss per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures. (Dollars in Fourth Fourth millions, Quarter Quarter except per 2024 2023 share data) $ million Per $ million Per s Share s Share Revenues $15,242 $22,018 (Loss)/earnings (3,770) 283 from operations (GAAP) Operating (24.7) % 1.3 % margins (GAAP) FAS/CAS service cost adjustment: Pension (203) (136) FAS/CAS service cost adjustment Postretirement (69) (57) FAS/CAS service cost adjustment FAS/CAS (272) (193) service cost adjustment Core operating ($4,042) $90 (loss)/earnings (non-GAAP) Core operating (26.5) % 0.4 % margins (non -GAAP) Diluted loss ($5.46) ($0.04) per share (GAAP) Pension ($203) ($0.28) ($136) ($0.23) FAS/CAS service cost adjustment Postretirement (69) (0.10) (57) (0.09) FAS/CAS service cost adjustment Non-operating (108) (0.15) (127) (0.21) pension income Non-operating (18) (0.03) (14) (0.02) postretirement income Provision for 84 0.12 70 0.12 deferred income taxes on adjustments1 Subtotal of ($314) ($0.44) ($264) ($0.43) adjustments Core loss per ($5.90) ($0.47) share (non -GAAP) Weighted 718.1 609.5 average diluted shares (in millions) 1The income tax impact is calculated using the U.S. corporate statutory tax rate. The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margin, and core loss per share with the most directly comparable GAAP financial measures of loss from operations, operating margin, and diluted loss per share. See page 5of this release for additional information on the use of these non-GAAP financial measures. (Dollars in Full Year Full millions, 2024 Year except per 2023 share data) $ millions Per $ million Per Share s Share Revenues $66,517 $77,794 Loss from (10,707) (773) operations (GAAP) Operating (16.1) % (1.0) % margins (GAAP) FAS/CAS service cost adjustment: Pension (811) (799) FAS/CAS service cost adjustment Postretirement (293) (257) FAS/CAS service cost adjustment FAS/CAS (1,104) (1,056) service cost adjustment Core operating ($11,811) ($1,829) loss (non -GAAP) Core operating (17.8) % (2.4) % margins (non -GAAP) Diluted loss ($18.36) ($3.67) per share (GAAP) Pension ($811) ($1.26) ($799) ($1.32) FAS/CAS service cost adjustment Postretirement (293) (0.45) (257) (0.42) FAS/CAS service cost adjustment Non-operating (476) (0.74) (529) (0.87) pension income Non-operating (73) (0.11) (58) (0.10) postretirement income Provision for 347 0.54 345 0.57 deferred income taxes on adjustments1 Subtotal of ($1,306) ($2.02) ($1,298) ($2.14) adjustments Core loss per ($20.38) ($5.81) share (non -GAAP) Weighted 647.2 606.1 average diluted shares (in millions) 1The income tax impact is calculated using the U.S. corporate statutory tax rate. 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