Boeing Defense, Space & Security Revenues Fall 13% in 2022
The Boeing Company’s full year 2022 revenues in its Defense, Space & Security segment fell, while overall yearly revenues increased for the company as a whole, according to the company’s latest financial results released Wednesday.
Company-wide, Boeing reported a 7% revenue increase in 2022 over 2021. Revenue in 2022 was $66.6 billion. Net loss was $5 billion. The company-wide revenue increase was buoyed by a 41% increase in commercial airplane deliveries compared to 2021.
However, Defense, Space & Security revenue in 2022 at $23.2 billion was a 13% drop compared to 2021. The company said the segment is dealing with the “continued operational impact of labor instability and supply chain disruption.”
Operating loss for the segment was $3.5 billion in 2022, compared to $1.5 billion earnings in 2021.
Backlog at Defense, Space & Security was $54 billion at the end of the year, 28% of which was orders from customers outside the U.S. This is a 10% decrease in backlog from the end of 2021.
Satellite deliveries picked up in 2022 for the segment, after Boeing had not delivered a satellite since early 2020. Boeing delivered four commercial and civil satellites and one military satellite last year. All commercial deliveries were SES satellites, SES-20 and SES-21, and the first two O3b mPOWER satellites.
Boeing is working to consolidate and streamline its defense business after performance issues over the last few years, the company announced in November.
During a call with investors on Wednesday, Boeing President and CEO Dave Calhoun said a focus for the segment is to “improve execution stability both in the factory and in the supply base.”
“As we move our way into 2023, we clearly expect [Boeing Defense, Space & Security] margins to get better. It’s not going to be all the way back to what normal might look like but it’s going to improve sequentially. We feel pretty good about the lineup in terms of the product portfolio — the products are performing incredibly well with the customers. We feel good about the underlying base with BDS. Margins will get better, and we’re positioned for that as we head into the year.”
Calhoun also highlighted the success of the SLS launch and the Starliner crew capsule test in May.
“This was an enormous emotional upper for our company and for our team broadly,” Calhoun said of the SLS launch. “The Artemis I launch in November which was powered by the SLS rocket was more than a little inspiring. … That rocket just shows what Boeing is capable of when we put our minds to it, we follow our disciplines, we stay patient and ultimately prove to the world that there’s more to do in space.”