Aerospace giant Boeing is reportedly exploring options to bolster its finances, potentially through a massive stock sale worth at least $10 billion. According to insiders, the company is working with advisors to weigh its choices, although any equity raise is unlikely to occur in the immediate future.
Boeing’s financial struggles have been exacerbated by the ongoing production woes of its best-selling 737 MAX jet, which was hit by a mid-air incident in January involving a detached door panel. The situation was further complicated by a labor dispute in September, when around 30,000 workers in the Seattle and Portland areas went on strike.
The company is grappling with a substantial debt burden of approximately $60 billion, having posted significant operating cash flow losses of over $7 billion in the first half of 2024. To address these challenges, Boeing had previously hinted at the possibility of issuing new equity to tackle its safety issues and looming debt obligations.
Industry observers believe the company will need to raise capital by the end of 2024, with estimates suggesting a potential equity raise of between $10 billion and $12 billion. Boeing faces significant debt maturities, with around $4.6 billion in bonds and loans due by the end of 2025.
The company’s shares were down 1.3% in premarket trading, reflecting the ongoing uncertainty surrounding its financial situation.
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