BA

The Boeing Company stock research

Jun 30, 2024

FY2024 Q2

The Boeing (BA) Gross Margin — Quarter Ended Jun 30, 2024

Revenue was higher than the prior quarter but lower than the same quarter last year. Gross profit weakened compared to both periods, and gross margin declined from the prior quarter and the year-ago quarter, as cost of revenue increased relative to revenue.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue was higher than the prior quarter but lower than the same quarter last year. Gross profit weakened compared to both periods, and gross margin declined from the prior quarter and the year-ago quarter, as cost of revenue increased relative to revenue.

  • The strongest observable driver is the relationship between cost of revenue and revenue: cost of revenue grew faster than revenue, compressing gross profit and margin.
  • Compared to the prior quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter last year, both revenue and gross profit were lower, with gross margin also declining.

Gross margin snapshot

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

Gross margin

7.3%

Gross profit

$1.2B

Revenue

$16.9B

Cost of revenue

$15.6B

Quarter-over-quarter change

-4.0 pts

Year-over-year change

-2.5 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$18.1B$1.2B$16.9B6.4%
Dec 31, 2023$22.0B$2.7B$19.3B12.2%
Mar 31, 2024$16.6B$1.9B$14.7B11.3%
Jun 30, 2024$16.9B$1.2B$15.6B7.3%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-4.0 pts

Year-over-year change

Jun 30, 2023

-2.5 pts

What the margin says

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

The strongest observable driver is the relationship between cost of revenue and revenue: cost of revenue grew faster than revenue, compressing gross profit and margin.

Compared to the prior quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter last year, both revenue and gross profit were lower, with gross margin also declining.

Monitor the trend in cost of revenue relative to revenue, as its faster growth is the primary factor behind margin compression.