Boeing forecasts big loss on defense troubles, strike; shares drop 2.5%

(Reuters) -Boeing’s loss will exceed expectations when it unveils fourth-quarter results next week, the financially strapped U.S. planemaker said on Thursday, due to charges at its defense unit, lower jetliner deliveries and losses from a crippling strike.

The company forecast a quarterly loss of $5.46 per share, sharply steeper than analysts’ average expectation of a $1.84 per share loss.

Boeing shares fell 2.5% in after-hours trading as the company projected quarterly revenue of $15.2 billion, below expectations of $16.27 billion.

Boeing racked up losses in 2024, hammered by a strike by more than 33,000 workers which halted production of its 737 MAX, 777 and 767 planes and by an ailing defense and space division. The planemaker was already wrestling with a quality crisis from a January mid-air panel blowout in a nearly new 737 MAX operated by Alaska Airlines.

Analysts on average were expecting a loss per share of $1.84 and revenues of $16.27 billion according to LSEG data.

“Although we face near-term challenges, we took important steps to stabilize our business during the quarter, including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet,” CEO Kelly Ortberg, who took the reins in August, said in a statement. “We also restarted 737, 767 and 777/777X production and our team remains focused on the hard work ahead to build a new future for Boeing.”

Boeing reached a deal with its Northwest factory workers in early November.

(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Sriraj Kalluvila and David Gregorio)