The Boeing Company announced yesterday it will recognize impacts to its financial results related to the IAM (International Association of Machinists and Aerospace Workers) work stoppage and agreement, charges for certain Defense, Space & Security programs and costs associated with workforce reductions announced last year when it reports fourth quarter results on January 28. The company expects to report fourth quarter revenue of $15.2 billion, GAAP loss per share of ($5.46), and operating cash flow of ($3.5) billion. Cash and investments in marketable securities totaled $26.3 billion at the end of the quarter.

Commercial Airplanes results will reflect impacts associated with the IAM work stoppage and agreement including lower deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs. The 777X program pre-tax charge of $0.9 billion reflects higher estimated labor costs associated with finalizing the IAM agreement and will be incurred over the next several years. The company still anticipates first delivery of the 777/9 in 2026. Commercial Airplanes expects to report fourth quarter revenue of $4.8 billion and operating margin of (43.9) percent.

Defense, Space & Security expects to recognize pre-tax earnings charges of $1.7 billion on the KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25 programs. The KC-46A program pre-tax charge of $0.8 billion reflects higher estimated manufacturing costs, including impacts of the IAM work stoppage and agreement. The T-7A program pre-tax charge of $0.5 billion was primarily driven by higher estimated costs on production lots in 2026 and beyond. Defense, Space & Security expects to report fourth quarter revenue of $5.4 billion and operating margin of (41.9) percent.

See for details AVIONEWS 1 and 2.