BA

The Boeing Company stock research

Sep 30, 2023

FY2023 Q3

The Boeing (BA) Gross Margin — Quarter Ended Sep 30, 2023

Current quarter gross profit and gross margin improved compared to the same quarter last year, but weakened relative to the prior quarter. The decrease in revenue and cost of revenue from the prior quarter was not proportional, leading to a lower gross profit and gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Current quarter gross profit and gross margin improved compared to the same quarter last year, but weakened relative to the prior quarter. The decrease in revenue and cost of revenue from the prior quarter was not proportional, leading to a lower gross profit and gross margin.

  • The strongest observable margin driver is the recovery from a negative gross margin in the same quarter last year to a positive gross margin in the current quarter.
  • Compared to the immediately preceding quarter, revenue, gross profit, and gross margin are all lower, while cost of revenue is also lower. Compared to the same quarter one year earlier, revenue and gross profit are higher, cost of revenue is slightly higher, and gross margin has improved from negative to positive.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

6.4%

Gross profit

$1.2B

Revenue

$18.1B

Cost of revenue

$16.9B

Quarter-over-quarter change

-3.4 pts

Year-over-year change

+11.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$17.9B$1.9B$16.0B10.7%
Jun 30, 2023$19.8B$1.9B$17.8B9.8%
Sep 30, 2023$18.1B$1.2B$16.9B6.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

-3.4 pts

Year-over-year change

Sep 30, 2022

+11.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the recovery from a negative gross margin in the same quarter last year to a positive gross margin in the current quarter.

Compared to the immediately preceding quarter, revenue, gross profit, and gross margin are all lower, while cost of revenue is also lower. Compared to the same quarter one year earlier, revenue and gross profit are higher, cost of revenue is slightly higher, and gross margin has improved from negative to positive.

Monitor the trajectory of gross profit relative to revenue in upcoming quarters.