Boeing returned to the black in the fourth quarter, posting a net profit of $8.22 billion, or $10.23 per share, for the period through December. That result contrasts with a net loss of $3.86 billion, or $5.46 per share, in the comparable period a year earlier.
The jump to profitability reflected several one-time and operational elements. The company completed the sale of its navigation software services provider, Jeppesen, to Thoma Bravo for $10.6 billion in cash. At the same time Boeing executed a stock-based reacquisition of Spirit AeroSystems valued at $4.7 billion and settled roughly $3 billion of Spirit’s debt. Taken together, those transactions produced a net gain to Boeing of about $7.6 billion.
Operationally, Boeing cited rising jet output and stronger deliveries as supportive factors for the quarter’s performance. However, the company also recorded a $565 million charge associated with the KC-46 aerial-refueling tanker program during the period.
On a cash-flow basis, Boeing generated $375 million in cash in the fourth quarter, yet for the full year the company reported a net cash outflow of $1.9 billion. Company commentary attributes part of the annual cash burn to ongoing certification delays affecting the 737 MAX and 777X programs.
Financial detail and context
The accounting impact from the Jeppesen sale and the Spirit AeroSystems reacquisition was substantial and a primary driver of the quarter’s net profit. The pair of transactions - a $10.6 billion cash sale and a $4.7 billion stock reacquisition, coupled with approximately $3 billion in debt repayments on Spirit’s balance sheet - together translated to the reported net incremental gain of about $7.6 billion for Boeing in the period.
Despite the headline profit, the company’s cash-flow dynamics remain mixed. A positive cash inflow in the final quarter did not offset an overall yearly cash deficit, and program-level challenges continued to incur charges and contribute to liquidity pressure.
Implications for markets and industry participants
- Defense contracting and military programs are affected by the KC-46 charge, which adjusts program profitability for Boeing’s tanker work.
- Commercial aerospace suppliers and production chains are influenced by rising output and deliveries, and also by the certification status of the 737 MAX and 777X programs which the company cites as a factor in its annual cash burn.
- Capital allocation decisions - including large asset sales and strategic reacquisitions - played a decisive role in the quarter’s results.