Boeing (NYSE: BA) reported better-than-expected fourth-quarter free cash flow, as the aircraft manufacturer said it made meaningful progress in strengthening operational performance and safety execution.
Free cash flow totaled $375 million for the quarter, exceeding Bloomberg consensus expectations of $271.9 million. Boeing said the result reflected higher commercial aircraft deliveries and favorable working-capital timing, partially offset by increased investments at facilities in Charleston and St. Louis.
Revenue from the commercial airplanes division rose to $11.4 billion, more than doubling from the prior year and surpassing forecasts, as Boeing increased production of the 737 program and secured final regulatory approval to begin the last phase of certification flight testing for the 737-10. Results also included the impact of Boeing’s $4.7 billion acquisition of Spirit AeroSystems, which closed in December.
Boeing delivered 160 aircraft during the quarter and reported a backlog of more than 6,100 airplanes valued at a record $567 billion. In defense, higher volumes lifted revenue to $7.4 billion, up 37% year over year, despite losses tied to the KC-46A Pegasus tanker program. The defense backlog reached an all-time high of $85 billion.
