Boeing has announced a stock offering expected to raise up to $19 billion, with proceeds intended for debt repayment and investment in its subsidiaries.
This announcement comes after the aviation giant reported a substantial quarterly loss of $6.2 billion and amid a strike involving around 33,000 U.S. workers that has disrupted operations at two major plants since mid-September.
In a statement, Boeing clarified that the net proceeds from the offering will be used for general corporate purposes, which include debt repayment, working capital, capital expenditures, and funding investments in its subsidiaries. The company plans to sell 90 million shares of common stock—valued at approximately $13.9 billion based on current market prices—along with $5 billion in depositary shares. Following the announcement, Boeing’s shares declined in premarket trading.
Boeing has faced a series of challenges in recent years, leading to the departure of its former CEO, who was succeeded in August by aerospace veteran Kelly Ortberg. Ortberg, 64, has stated that he is reviewing company operations to focus on doing fewer things but doing them better. Since his appointment, Boeing has implemented measures to improve its cash position, including a 10% reduction in its global workforce, resulting in approximately 17,000 job cuts. The company is also exploring the potential sale of its space division, which includes the troubled Starliner vehicle, as reported by the Wall Street Journal.
Meanwhile, the strike continues after union members rejected a new contract offer. Nearly two-thirds (64%) of the International Association of Machinists and Aerospace Workers District 751 members voted against the preliminary agreement, prolonging the walkout of thousands of employees in the Seattle area. The latest contract proposal included a 35% pay increase over four years and a one-time signing bonus of $7,000, but did not reinstate a company pension, a key issue for many older workers. While union members see this as a negotiation for past concessions, Boeing considers restoring the pension unfeasible due to cost concerns.
The strike has significantly impacted production at two factories assembling the 737 MAX and 777, resulting in an estimated $7.6 billion in direct losses—over $4.35 billion for Boeing and nearly $2 billion for its suppliers, according to the Anderson Economic Group consultancy.
