New Boeing CEO Kelly Ortberg probably didn’t need reminding of what was coming. Still, the troubled plane maker’s second-quarter results, released just before his termination was announced last Wednesday, underscored the chaos he inherited. The company reported a loss of $2.90 per share, missing analysts’ expectations by nearly a dollar. Operating losses more than tripled from a year ago to $1.4 billion.

Even if a respected industry veteran takes the helm on Thursday, the numbers could get worse. Two decades of leadership mistakes at Boeing are well-documented, but Ronald Epstein, senior analyst at Bank of America, said Boeing’s credibility problems are also affecting investors’ assessment of its finances.

“They’ve been pushing a certain narrative quarter after quarter, but it just hasn’t held true,” Epstein said. Assets, and added to his comment on Boeing with the title “A bad quarter, and that was by no means the end of the story.”

Boeing shares rose last Wednesday after the company confirmed Ortberg’s appointment, closing above the $190 mark. But they have since fallen 12%, opening at $167 on Wednesday. The stock is down 35% year-to-date and down 62% from its all-time high of $440.62 in March 2019.

That puts Boeing among the 10 worst-performing stocks in the S&P 500, although Epstein said it would likely be worse if Boeing did not benefit from a global duopoly with Airbus in large commercial aircraft. But bond investors are still nervous, he said, given the possibility that the company’s bonds could be downgraded from low to junk.

The reason is that Boeing is burning a lot of cash: $4.3 billion in the last quarter and an expected $9 to $10 billion for the full year. This does not include the roughly $4 billion in debt that Boeing will absorb through the acquisition of Spirit AeroSystems, which makes the fuselage of Boeing’s aircraft.

“It’s one of the few names I’m watching right now where investors are looking at the balance sheet as much as the income statement,” Epstein said of Boeing, “because they have so much debt.”

To get things back on track, Boeing found the outsider it wanted in Ortberg. Ortberg led Rockwell Collins from 2013 to 2019, when the company doubled its revenue and became the world’s third-largest aerospace company. Epstein agreed that hiring an outsider was the right move. Ortberg could cast a wider net for talent than a Boeing insider and draw on the experience he gained fostering a renowned company culture at Rockwell Collins.

“But this won’t happen overnight,” Epstein said.

Boeing’s commercial and defense business continues to struggle

Investors hope a culture change will translate into better results. Boeing’s second-quarter revenue fell short of expectations, falling below $17 billion, a 15 percent decline from the same quarter last year. Revenue in the commercial aircraft business fell 32 percent as Boeing delivered just 92 planes in the three months, compared with 136 in the same period last year.

The decline in deliveries, Epstein said, had nothing to do with the US Federal Aviation Administration’s (FAA) limit on production of the 737 Max after a panel on one of the planes came off during an Alaska Airlines flight in January.

“They’ve basically made the decision to slow everything down to try to fix everything before they speed it up again,” Epstein said. “That’s probably the right decision, but that takes time.”

Boeing’s defense and aerospace business is also in trouble – and not just because two NASA astronauts are still on the International Space Station due to problems with Boeing’s Starliner capsule. The company made losses of $1 billion on certain fixed-price development programs where it had bid too low. A particularly bad loss was a $391 million loss on the production of the KC-46A, an Air Force oil tanker.

“The margins on these programs were really, really bad,” Epstein said.

As global defense spending rises, Boeing’s results pale in comparison to those of its competitors. General Dynamics and Northrop Grumman, for example, reported earnings per share increases of 21 and 19 percent, respectively, in the last quarter.

“All of these guys are really pushing hard right now,” said Epstein, emphasizing how much work Ortberg has ahead of him.

This story originally appeared on Fortune.com