
AnnualReport Defining our future, together Table ofContents A letter from President and CEO Kelly Ortberg 1LeadershipMessage team took a hard look at our culture,systems and processes to ensure thesafety, quality and compliance of everyproduct and service that is deliveredto our customers — something I wasenergized to partner on when I joinedthe Boeing team in August. Under theoversight of the U.S. Federal AviationAdministration (FAA), I am extremelyproud of the progress we are makingon our Safety & Quality Plan to addressissues, reduce defects and strengthenour workforce with additional trainingand other improvements. 4Board ofDirectors andCompany Officers 5FinancialOverview To the Shareholders and Employeesof Boeing, 6Form 10-K Over the course of our 108-yearhistory, a number of consequentialmoments have defined our company,our industry and our world. 139CautionConcerningForward-LookingStatements Many of these improvements camedirectly from our dedicated team.During safety and quality stand-downs, more than 100,000 teammatesacross the company participated andshared ideas to improve our processes.From enhancing training and addinginspections to instituting new randomquality audits and simplifyinginstallation plans, these changesare redefining how we work todayand in the future. Today is one of those momentsthat will set the course for ourfuture success as a company.We are implementing the fundamentalchanges we need to stabilize ourbusiness, improve our culture, andrestore the trust of employees,customers, investors, suppliers,regulators and others who count on us. 140Non-GAAPMeasures 141Selected Programs,Products andServices While there are challenges ahead, thechange at Boeing has already begunas we work together to uphold theiconic legacy of our great company.Boeing has always been at theforefront of aerospace innovation,and we intend to stay there. In parallel, we further matured ourSafety Management System (SMS)throughout the company. For example,within our commercial airplaneproduction system, the SMS is helpingguide critical decisions to identify andaddress potential issues across 737and 787 final assembly, along withportions of our 767 and 777 productionlines. This work will continue to moveforward as we further embed our SMSacross Boeing. 151ShareholderInformation Strengthening Safety& Quality Following the 737-9 mid-exit doorplug accident in January 2024, our decade, and our most recent forecastprojects demand for nearly 44,000new airplanes by 2043. To meet thisdemand and our commitments to ourcustomers, we are working to ensurestability across our production systemand within our supply chain. We planto increase production to reach 38737 MAX airplanes per month laterthis year. The 787 program reacheda rate of five airplanes per month atthe end of 2024, and we plan toincrease the production rate toseven per month in 2025. conversations with our customer tosupport schedules, requirements andperformance on the VC-25B program. Rebuilding Our Culture Working together to fix our culture willtake time, but it is perhaps the mostimportant change we need to make asa company. Restoring the values thatwere foundational to Boeing’s storiedhistory and setting expectations forbehavior will move us forward. Our services business continues toprovide stability for the company whiledelivering for commercial and defense 737 MAX airplanes outside the Renton,Washington, factory. Change must start at the top andincludes getting our leaders back tothe factory floor, into our engineeringlabs and connected to other placeswhere our people work every day.We must understand and remove thechallenges our teams face to make iteasier for them to do their jobs. Forour teammates, we need to restoreour trust in one another and breakdown the barriers that prevent us fromworking together across the company. We also remain focused on executingon our development programs. Safelyadvancing the 737-7, 737-10 and 777Xthrough certification and welcomingthem into the global fleet is a keypriority for us and our customers. Around the world, the U.S. armedforces and allies depend on our defenseproducts to secure and protect freedomand provide humanitarianaid in times of crisis. Wecontinue to see stableand solid demand acrossthe defense and spaceportfolio as governmentsprioritize security,defense technology andglobal cooperation givenevolving threats. To get us started, we have alreadylaunched a culture working group ofteammates focused on sharing ideasand perspectives from our sites aroundthe world. Going forward, we will betransparent about the things we needto change and improve. Our team iscommitted to this work, and whenwe get this right, it will lead to ourfuture success. “While there is more work ahead,our backlog of more than halfa trillion dollars demonstratesthe value of our portfolio. It isup to us to execute with a focuson safety and quality.” Delivering On OurCustomer Commitments We have also taken