Spirit AeroSystems Holdings Inc

Latest Results (22.11.2025):

Spirit AeroSystems Holdings Inc — First Quarter 2025: Spirit reported Q1 2025 revenue of $1.5 billion, GAAP EPS of $(5.21) and adjusted EPS* of $(4.25). The company used $420 million of cash in operations and had free cash flow usage of $474 million, finishing the quarter with $220 million of cash and a backlog of approximately $48 billion. Management reported an improved operating loss versus Q1 2024 but noted substantial doubt about the company's ability to continue as a going concern and reiterated the expected closing of the Boeing merger in Q3 2025, subject to divestitures and regulatory approvals.

Revenue and deliveries

Revenue declined year-over-year to $1.5B, primarily from lower production activity on most Boeing programs (notably the 737). Overall deliveries increased versus Q1 2024, with Boeing 737 deliveries significantly higher due to prior-year delays. Backlog at quarter-end was about $48 billion.

Earnings, reserves and changes in estimates

Q1 2025 GAAP EPS was $(5.21) (vs. $(5.31) a year earlier); adjusted EPS* was $(4.25) (worse than $(3.93) in Q1 2024). Total change in estimates included net forward losses of $293M and unfavorable cumulative catch-up adjustments of $8M (A350 $90M, A220 $86M, 787 $38M). The quarter included an $80M gain from the sale of Fiber Materials, Inc. and a $116M specific warranty reserve for parts tied to alleged counterfeit titanium records — Spirit intends to pursue supplier recoveries.

Cash, liquidity and going concern

Cash used in operations was $420M; free cash flow usage was $474M, and cash on hand was $220M. Cash flow weakened largely from working capital timing despite higher 737 deliveries. Management said additional funding will be needed, outlined liquidity plans (customer advances, divestitures, restructuring), but stated substantial doubt exists about the company’s ability to continue as a going concern.

Boeing merger and Airbus divestiture update

Spirit and Boeing remain under a Merger Agreement with a target close in Q3 2025, conditional on divestitures and regulatory approvals; both parties have received an FTC "second request." On April 28, 2025 Spirit entered an Airbus Divestiture Agreement under which Airbus would acquire certain Airbus-related assets (and cash in the amount of $439.0M, subject to adjustments) and provided a memorandum for $200M of non‑interest-bearing lines of credit to support Airbus programs (repayment assumed by Airbus on close or due April 1, 2026).

Segment performance

Commercial segment revenue fell and operating margin declined (lower Boeing activity, the $116M warranty reserve, and lower change-in-estimate charges vs. last year). Commercial change in estimates: $263M net forward losses, $17M unfavorable cumulative catch-up, and $41M of excess capacity costs. Defense & Space revenue rose (higher P‑8 and CH‑53K activity) but margin declined due to forward losses on KC‑46/KC‑135 (net forward losses $30M, favorable cumulative catch-up $9M).