CLAIM #8956 · The Boeing Company (BA) · 2022Q4 earnings call · Jan 25, 2023 · due Dec 31, 2023
“We expect it to happen partly in 2023, but the key thing to watch is just the stability of the supply chain is going to be a big, big deal that we're keeping our eye on. And that's going to be important as margins will tend to accelerate.”
Brian West · CFO
In context
“cation, you mentioned that margins at BDS tick up in '23, but don't get back to the long-term margin rates that you expect are on a normalized basis. Just curious what the milestones are going to be for us to be watching out for on getting back to those normalized rates? And then on the services business. Maybe just a little bit more color on expectations for '23 with regard to your expectations on growth rate and margins? Thanks. Brian West: Yes, sure. On the BDS. So as you mentioned, long term, high single digits, is what we've talked about. But in the near term, the same kind of supply chain constraints and labor availability that we've talked about in the BCA world, impact the BDS role as well. So when the current environment is less constrained and stabilizes, that will be a benefit. We expect it to happen partly in 2023, but the key thing to watch is just the stability of the supply chain is going to be a big, big deal that we're keeping our eye on. And that's going to be important as margins will tend to accelerate. The time and the pace remains to be seen, but it will get better in 2023. On the services side, so we had a big year for the services business. It's going to have to -- and part of that was based on the commercial recovery, and we enjoyed the benefit of that in 2022. But BGS, in terms of their revenue, they finished the quarter at a pretty good spot pretty clean basis. And if you just kind of think about that as how you would extrapolate into 2023 by quarter gives you a pretty good view of where we see that growth coming for. So it will grow, margin will be just fine right within that mid-teen levels that we've enjoyed. So we feel pretty good about the prospects of the service business, very stable, continue to grow, no surprises. Jason Gursky: Great. Thank you. Operator: Next, we'll go t”
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SEC filings for BA ↗ · Claim quote is verbatim from the 2022Q4 earnings call.