BOEING COBA
BOEING CO Earnings Per Share Disclosure
Earnings Per Share
Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings.
Basic earnings per share is calculated by taking net earnings attributable to Boeing shareholders, less Mandatory convertible preferred stock dividends accumulated during the period and earnings available to participating securities, divided by the basic weighted average common shares outstanding.
Diluted earnings per share is calculated by taking net earnings attributable to Boeing shareholders, less Mandatory convertible preferred stock dividends accumulated during the period and earnings available to participating securities, divided by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding is calculated using the treasury stock method for share-based compensation awards and the if-converted method for Mandatory convertible preferred stock and Exchangeable Notes. Under the if-converted method, if the potential conversion of our Mandatory convertible preferred stock and/or Exchangeable Notes is dilutive, net earnings attributable to Boeing shareholders is adjusted to add back the Mandatory convertible preferred stock dividends accumulated during the period and/or the periodic interest expense on the Exchangeable Notes, net of tax.
The elements used in the computation of Basic and Diluted earnings/(loss) per share were as follows:
(In millions - except per share amounts) | |||||||||||||||||
| Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Basic | |||||||||||||||||
| Net earnings/(loss) attributable to Boeing shareholders | $2,235 | ($11,817) | ($2,222) | ||||||||||||||
| Less: Mandatory convertible preferred stock dividends accumulated during the period | 345 | 58 | |||||||||||||||
| Less: earnings available to participating securities | 1 | ||||||||||||||||
| Net earnings/(loss) available to common shareholders | $1,889 | ($11,875) | ($2,222) | ||||||||||||||
| Diluted | |||||||||||||||||
Basic Net earnings/(loss) available to common shareholders | $1,889 | ($11,875) | ($2,222) | ||||||||||||||
Add: Mandatory convertible preferred stock dividends accumulated during the period | |||||||||||||||||
Add: interest expense on Exchangeable Notes, net of tax | |||||||||||||||||
| Net earnings/(loss) available to common shareholders | $1,889 | ($11,875) | ($2,222) | ||||||||||||||
| Basic | |||||||||||||||||
Basic weighted average shares outstanding | 760.0 | 647.2 | 606.1 | ||||||||||||||
Less: participating securities(1) | 0.2 | 0.3 | 0.3 | ||||||||||||||
Basic weighted average common shares outstanding | 759.8 | 646.9 | 605.8 | ||||||||||||||
| Diluted | |||||||||||||||||
Basic weighted average shares outstanding | 760.0 | 647.2 | 606.1 | ||||||||||||||
Dilutive potential common shares(2) | 2.5 | ||||||||||||||||
Diluted weighted average shares outstanding | 762.5 | 647.2 | 606.1 | ||||||||||||||
Less: participating securities(1) | 0.2 | 0.3 | 0.3 | ||||||||||||||
Diluted weighted average common shares outstanding | 762.3 | 646.9 | 605.8 | ||||||||||||||
Net earnings/(loss) per share: | |||||||||||||||||
Basic | $2.49 | ($18.36) | ($3.67) | ||||||||||||||
Diluted | 2.48 | (18.36) | (3.67) | ||||||||||||||
(1)Participating securities include certain instruments in our deferred compensation plan.
(2)Diluted earnings per share includes any dilutive impact of stock options, restricted stock units, performance restricted stock units, Mandatory convertible preferred stock and Exchangeable Notes.
The following table represents potential common shares that were not included in the computation of Diluted earnings/(loss) per share. Potential common shares from performance restricted stock units, restricted stock units and stock options were not included because their effect was antidilutive based on their strike price or the performance condition was not met. Potential common shares from Mandatory convertible preferred stock and Exchangeable Notes were not included because their effect was antidilutive based on the application of the if-converted method.
| (Shares in millions) | |||||||||||||||||
| Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
Performance restricted stock units | 0.5 | 0.7 | |||||||||||||||
| Restricted stock units | 0.1 | 0.5 | |||||||||||||||
| Stock options | 0.8 | 0.8 | 0.8 | ||||||||||||||
Mandatory convertible preferred stock | 33.8 | ||||||||||||||||
Exchangeable Notes | 0.1 | ||||||||||||||||
In addition, potential common shares of 11.6 million and 5.7 million for the years ended December 31, 2024 and 2023, were excluded from the computation of Diluted earnings/(loss) per share, because the effect would have been antidilutive as a result of incurring a net loss in those periods.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 30, 2026 | Showing above |
| 2024 | Feb 3, 2025 | |
| 2023 | Jan 31, 2024 | |
| 2022 | Jan 27, 2023 | |
| 2021 | Jan 31, 2022 | |
| 2020 | Feb 1, 2021 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.