The Boeing Company [NYSE: BA] reported first-quarter revenue of $23.4 billion reflecting higher commercial deliveries and mix, defense contract volume and services growth. GAAP earnings per share increased to $4.15 and core earnings per share (non-GAAP)* increased to $3.64 reflecting strong performance across the company.
The company’s cash flow guidance is increased to between $15.0 and $15.5 billion, driven by improved performance. Full year EPS guidance is increased by $0.50to between $16.40 and $16.60, and core earnings per share (non-GAAP)* guidance is increased to between $14.30 and $14.50 on performance.
“Across Boeing, our teams performed at a high level in the quarter, driving revenue and earnings growth at all three business units, increasing profitability and operating cash flow, and delivering more value to our customers,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg. “Customers continue to recognize the value of our products and services, with strong orders booked in the quarter for defense, services and commercial offerings, including 221 net commercial aircraft orders.”
“During the quarter we captured important new business, including an initial contract for 28 F/A-18 Super Hornets for Kuwait, a Ground-based Midcourse Defense program contract extension from the Missile Defense Agency, and we delivered the first Space Launch System intertank hardware to NASA. We achieved the first flight of the 737 MAX 7, and delivered the first 787-10 Dreamliner and the first 737 MAX 9. Within our services business, we received a follow-on contract to support the Royal Canadian Air Force’s Chinook fleet, captured a landing gear exchange contract for Aeromexico, and released Self-Service Analytics to complement our digital solutions portfolio. All of these milestones demonstrated the value we bring to our customers through the strength of our One Boeing offerings.”
“Our team’s strong first-quarter performance, combined with the positive market outlook across our businesses and our confidence in executing on our production and development programs, gives us a solid foundation to raise our guidance for the year. Going forward, we remain focused on our disciplined growth strategy, improved profitability and cash flow to ensure we meet our commitments to our customers and our shareholders.”
Global Services first-quarter revenue increased to $3.9 billion, reflecting growth in commercial services. First-quarter operating margin was 16.3 percent reflecting product and services mix.
During the quarter, Global Services was awarded a follow-on contract from the Royal Canadian Air Force to provide full system logistics, engineering support, supply chain, data analytics and training services to their fleet of Chinooks. Global Services also captured a contract from the Royal Saudi Air Force for F-15 repair support services and a contract from Aeromexico for the 787 landing gear exchange program. As part of Boeing AnalytX, we released Self-Service Analytics to complement our digital solutions portfolio, allowing customers to access data to develop deeper insights into their operations.