Boeing's Defense Business Hit By $2.8B Losses, Expects Positive Free Cash Flow For FY22

Boeing Co's (NYSE:BA) Defense, Space & Security unit recorded $2.8 billion of losses on certain fixed-price development programs, driven by higher estimated manufacturing and supply chain costs, as well as technical challenges.
Q3 sales for the unit decreased 20% to $5.31 billion.
Overall sales increased 4% to $15.96 billion, missing the consensus of $17.83 billion. Adjusted loss per share widened to $(6.18) from $(0.60) a year ago.
Related: Boeing Wins Senator Support For Request For Waiving Deadline Extension For New 737 MAX Variants Certifications.
Boeing delivered 112 commercial airplanes in the third quarter compared to 85 last year.
That helped generate a free cash flow of $2.9 billion in the quarter. It had recorded a cash burn of $507 million in the same period a year ago.
"We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022. At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defense development programs," said Boeing Chief Executive Dave Calhoun.
The total backlog was $381 billion, including over 4,300 commercial airplanes.
Price Action: BA shares are down 0.58% at $145.80 during the premarket session on the last check Wednesday.
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