Latest news with #GlobalServices
Yahoo
12 hours ago
- Business
- Yahoo
Boeing Plans No Further Changes to Global Services After Revamp
(Bloomberg) -- Boeing Co. has completed restructuring its Global Services business and isn't planning to make deeper cuts once it divests its Jeppesen unit later this year, the division's chief executive officer said. Security Concerns Hit Some of the World's 'Most Livable Cities' As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space As American Architects Gather in Boston, Retrofits Are All the Rage How E-Scooters Conquered (Most of) Europe Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown The planemaker isn't looking to auction off other businesses at the division, unit CEO Chris Raymond told reporters Tuesday at the Paris Air Show. The Jeppesen sale was initiated by Boeing CEO Kelly Ortberg shortly after he joined last year, as he faced a strike that had rapidly depleted the US planemaker's cash. Since then, the company has raised $24 billion in cash and begun the painstaking process of rebuilding its troubled manufacturing operations. Boeing also has no plans to fold the services unit, its only steady money-maker this decade, into the company's larger commercial airplane and defense operations, Raymond said. Analysts had widely speculated that Boeing Global Services might be dissolved to cut down on overhead, and that its disparate array of offerings, from spare-parts distribution to digital analytics and pilot training, might be pruned and sold after Ortberg unveiled plans to shrink Boeing last year. But the planemaker appears to be pulling out of its financial tailspin, as the tempo and quality of work in its factories improves. Boeing also got a larger-than-expected windfall from Jeppesen, which provides navigation and flight-planning products. It is being sold to private equity firm Thoma Bravo for $10.5 billion in a deal slated to close late this year. While Boeing would have preferred to keep the profitable business, the move was necessary to provide a financial cushion at a time when Boeing needed it. 'I think we've got the portfolio that we like,' Raymond said. 'Obviously, that was a valuable property in Jeppesen, and that was about the Boeing balance sheet, if you will.' For now, demand is booming for services tied to extending the commercial lives of jets, given a multi-year shortage of new aircraft. Boeing is seeing a surge of interest in refitting aircraft cabins with newer seats, and for the latest broadband service — particularly SpaceX's Starlink satellite system, Raymond said. The smallest of Boeing's three main businesses has been its steadiest performer in recent years: Global Services was the only division to post an operating profit in 2024, when the company posted an adjusted operating loss of $13.1 billion. The challenge for Raymond, who started in the role in January 2024, is to chart a new strategy without Jeppesen's profit cushion. Other digital offerings will continue to be a point of emphasis. But unlike in past eras, Boeing isn't pursuing growth only for growth's sake, Raymond said. The goal now? 'Disciplined, profitable growth,' he said. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software US Allies and Adversaries Are Dodging Trump's Tariff Threats ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
12 hours ago
- Business
- Bloomberg
Boeing Plans No Further Changes to Global Services After Revamp
Boeing Co. has completed restructuring its Global Services business and isn't planning to make deeper cuts once it divests its Jeppesen unit later this year, the division's chief executive officer said. The planemaker isn't looking to auction off other businesses at the division, unit CEO Chris Raymond told reporters Tuesday at the Paris Air Show.
Business Upturn
23-04-2025
- Business
- Business Upturn
Boeing Q1 2025 Results: Revenue up 18% to $19.5 billion, but cash burn and defense drag performance
Boeing [NYSE: BA] reported its Q1 2025 financial results showing a solid revenue growth of 18% year-on-year to $19.5 billion, fueled by a strong surge in commercial aircraft deliveries. The company delivered 130 aircraft, a 57% jump compared to the previous year, and received 221 net orders, pushing its backlog to $545 billion. Despite this revenue strength, Boeing posted a GAAP net loss of $31 million, or a loss per share of ($0.16). Core loss per share stood at ($0.49), and the company burned $2.3 billion in free cash flow, which was an improvement from the $4 billion outflow a year earlier. Commercial and services drive growth, defense disappoints The Commercial Airplanes segment earned $8.1 billion in revenue, but continued to struggle with an operating margin of (6.6%). Meanwhile, Global Services generated $5.1 billion, supported by a healthy 18.6% operating margin. In contrast, Defense, Space & Security revenue dropped 9% YoY to $6.3 billion, managing only a 2.5% operating margin. Boeing's debt remains high at $53.6 billion, raising investor concerns despite improving operational metrics. Production ramp-up and tariff watch Boeing aims to ramp up 737 MAX production to 42 jets per month later this year, pending FAA approval, while also increasing 787 production to seven monthly units. The company's executives are expected to face questions around the impact of global tariffs during their earnings call, especially amid rising trade tensions. FAQs What drove Boeing's Q1 2025 revenue growth? Primarily higher commercial aircraft deliveries, which rose 57% to 130 units. Did Boeing make a profit in Q1 2025? No, Boeing posted a net loss of $31 million, though it was a significant improvement from the $355 million loss in Q1 2024. How much free cash flow did Boeing burn? Free cash flow stood at negative $2.3 billion, improved from $4 billion a year earlier. What's the outlook for 737 MAX production? The company plans to ramp up 737 MAX production to 42 units per month, pending regulatory approval. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
