Boeing Considers Raising $10 Billion in New Stock

(Reuters) – Boeing (NYSE:BA) is considering raising at least $10 billion by selling new stock, according to Bloomberg News, which cited individuals familiar with the discussions.

The planemaker is working with advisers to explore its options, although raising equity is not expected to occur for at least a month.

Boeing has yet to respond to Reuters’ request for comment, and the report remains unverified by Reuters.

The company faces pressure from declining production of its best-selling 737 MAX jet, following a troubling incident in January when a door panel blew off mid-flight.

Further strain on Boeing’s finances came in September when approximately 30,000 of its workers, represented by the International Association of Machinists and Aerospace Workers in Seattle and Portland, went on strike.

Boeing is currently managing a substantial debt load of around $60 billion and reported operating cash flow losses exceeding $7 billion for the first half of 2024, based on data from LSEG.

The U.S. planemaker previously indicated it would contemplate issuing equity as it navigates ongoing safety issues highlighted by the January incident and impending debt maturities.

Industry analysts predict Boeing may need to raise funds by the end of 2024, with expectations ranging from $10 billion to $12 billion.

The company has nearly $4.6 billion in bonds and loans maturing by the end of 2025, according to LSEG data.

Shares of Boeing dipped 1.3% in premarket trading.