BA

The Boeing Company stock research

Dec 31, 2024

FY2024 Q4

The Boeing (BA) Gross Margin — Quarter Ended Dec 31, 2024

Revenue and cost of revenue both decreased from the prior quarter, but gross profit improved from a larger loss to a smaller loss, resulting in a higher gross margin. Compared with the same quarter one year earlier, revenue was lower while cost of revenue was also lower, yet gross profit turned from positive to negative, causing gross margin to weaken.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue and cost of revenue both decreased from the prior quarter, but gross profit improved from a larger loss to a smaller loss, resulting in a higher gross margin. Compared with the same quarter one year earlier, revenue was lower while cost of revenue was also lower, yet gross profit turned from positive to negative, causing gross margin to weaken.

  • The strongest observable margin driver is the change in cost of revenue relative to revenue. In the current quarter, cost of revenue declined more sharply than revenue compared with the prior quarter, which narrowed the gross loss.
  • Compared with the immediately preceding quarter, gross margin improved from a negative level to a less negative level. Compared with the same quarter one year earlier, gross margin weakened from positive to negative.

Gross margin snapshot

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

Gross margin

-10.4%

Gross profit

-$1.6B

Revenue

$15.2B

Cost of revenue

$16.8B

Quarter-over-quarter change

+9.2 pts

Year-over-year change

-22.7 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, 2024$16.6B$1.9B$14.7B11.3%
Jun 30, 2024$16.9B$1.2B$15.6B7.3%
Sep 30, 2024$17.8B-$3.5B$21.3B-19.7%
Dec 31, 2024$15.2B-$1.6B$16.8B-10.4%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

+9.2 pts

Year-over-year change

Dec 31, 2023

-22.7 pts

What the margin says

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

The strongest observable margin driver is the change in cost of revenue relative to revenue. In the current quarter, cost of revenue declined more sharply than revenue compared with the prior quarter, which narrowed the gross loss.

Compared with the immediately preceding quarter, gross margin improved from a negative level to a less negative level. Compared with the same quarter one year earlier, gross margin weakened from positive to negative.

Monitor the trajectory of cost of revenue relative to revenue, as its movement has been the primary factor in gross margin changes.