The Boeing Company stock research
FY2024 Q3
The Boeing (BA) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and cost of revenue both moved higher versus the prior quarter, but cost of revenue increased proportionally more, turning gross profit deeply negative and compressing gross margin to a loss position. Compared with the same quarter one year earlier, revenue was lower while cost of revenue was higher, resulting in a large gross loss versus a year-ago gross profit.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and cost of revenue both moved higher versus the prior quarter, but cost of revenue increased proportionally more, turning gross profit deeply negative and compressing gross margin to a loss position. Compared with the same quarter one year earlier, revenue was lower while cost of revenue was higher, resulting in a large gross loss versus a year-ago gross profit.
- The strongest observable margin driver this quarter is the sharp increase in cost of revenue relative to revenue, which is the direct cause of the negative gross margin. This relationship should be monitored for any sequential improvement as the company executes.
- Gross margin weakened materially from a positive gross margin in the prior quarter to a negative gross margin, reflecting a larger increase in cost of revenue versus revenue. Versus the same quarter last year, gross margin also deteriorated, from a moderate positive margin to a negative figure, as revenue fell and cost of revenue rose.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-19.7%
Gross profit
-$3.5B
Revenue
$17.8B
Cost of revenue
$21.3B
Quarter-over-quarter change
-26.9 pts
Year-over-year change
-26.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $22.0B | $2.7B | $19.3B | 12.2% |
| Mar 31, 2024 | $16.6B | $1.9B | $14.7B | 11.3% |
| Jun 30, 2024 | $16.9B | $1.2B | $15.6B | 7.3% |
| Sep 30, 2024 | $17.8B | -$3.5B | $21.3B | -19.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-26.9 pts
Year-over-year change
Sep 30, 2023
-26.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver this quarter is the sharp increase in cost of revenue relative to revenue, which is the direct cause of the negative gross margin. This relationship should be monitored for any sequential improvement as the company executes.
Gross margin weakened materially from a positive gross margin in the prior quarter to a negative gross margin, reflecting a larger increase in cost of revenue versus revenue. Versus the same quarter last year, gross margin also deteriorated, from a moderate positive margin to a negative figure, as revenue fell and cost of revenue rose.
Monitor the trajectory of cost of revenue relative to revenue in the next quarter to see if the negative gross margin narrows.