Boeing Co (BA) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 26, 2023 10:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Thank you for standing by. Good day, everyone, and welcome to The Boeing Company's First Quarter 2023 Earnings Conference Call. Today's call is being recorded. The management discussion and the slide presentation, plus the analyst question-and-answer session are being broadcast live over the Internet.

At this time, for opening remarks and introductions, I'm turning the call over to Mr. Matt Welch, Vice President of Investor Relations for Boeing. Mr. Welch, please go ahead.

Matt Welch - VP, IR

Thank you, and good morning. Welcome to Boeing's First Quarter 2023 Earnings Call. I am Matt Welch, and with me today are Dave Calhoun, Boeing's President and Chief Executive Officer; and Brian West, Boeing's Executive Vice President and Chief Financial Officer. As a reminder, you can follow today's broadcast and slide presentation at boeing.com. As always, detailed financial information is included in today's press release.

Furthermore, projections, estimates and goals included in today's discussion involve risks, including those described in our SEC filings and in the forward-looking statement disclaimer at the end of the web presentation. In addition, we refer you to our earnings release and presentation for disclosures and reconciliation of certain non-GAAP measures.

Now I will turn the call over to Dave Calhoun.

David Calhoun - President, CEO & Director

Thanks, Matt. Good morning, everyone, and thank you for joining us. We had a solid first quarter, and we continue to make real progress, steady progress in our recovery. Challenges remain. There's more to do. But overall, we feel good about the operational and financial outlook shared last November, including cash flow and delivery ranges set for 2023 as well as for the 2025, 2026 time frame, where we can see $10 billion in annual free cash flow.

Let's start with an update on our 737. Our team has been working hard over the last week. We've been progressing in our early inspection of affected airplanes. The issue's understood. It's isolated to two specific fittings, and we know what we have to do.

The work will impact the timing of our deliveries over the next several months. However, we still expect to deliver 450 737 airplanes this year. Unfortunately, the timing of these delivery shortfalls will impact summer capacities for many of our customers, and we feel terrible about that. Deliveries and production will be lower near term, but we will recover over the coming months, and we plan to increase our rate to 38 per month later this year.