Spirit AeroSystems Holdings Inc

Latest Results (29.12.2024):

Revenue

Spirit AeroSystems Holdings Inc reported third quarter 2024 revenues of $1.5 billion, marking an increase from the same period in 2023. This growth was primarily driven by higher production activities on most commercial programs and increased defense and space revenues. However, this was partially offset by a decrease in production volume on the Boeing 737 program. The company's backlog at the end of the third quarter was approximately $48 billion, encompassing work packages on all commercial platforms in the Airbus and Boeing backlog.

Earnings

For the third quarter of 2024, Spirit AeroSystems Holdings Inc experienced a higher operating loss compared to the same period in 2023. This was largely due to unfavorable changes in estimates, including net forward losses of $217 million and unfavorable cumulative catch-up adjustments of $26 million. The net forward losses were mainly attributed to the Boeing 787 and Airbus A220 programs, driven by production performance and increased labor and supply chain costs. The company's EPS for the third quarter was $(4.07), compared to $(1.94) in the same period of 2023.

Cash Flow

Spirit AeroSystems Holdings Inc's cash from operations and free cash flow were negatively impacted during the third quarter of 2024, primarily due to Boeing 737 delivery delays and working capital timing. The company entered into a delayed-draw bridge credit agreement, borrowing $350 million, which is scheduled to mature on March 31, 2025. The cash balance at the end of the third quarter was $218 million. Management is implementing plans to improve liquidity, including discussions on customer advance repayments and strategies to support operations.

Pending Boeing Acquisition

Spirit AeroSystems Holdings Inc is on track for a merger with The Boeing Company, expected to close in mid-2025. The merger agreement requires the divestiture of certain portions of Spirit's business related to Airbus contracts and other closing conditions, including shareholder and regulatory approvals. Both companies have received a second request for additional information from the Federal Trade Commission, extending the waiting period under the HSR Act until compliance is achieved or terminated sooner by the FTC.

Segment Results

In the third quarter of 2024, Spirit AeroSystems Holdings Inc's commercial segment revenue increased slightly due to higher production across most programs, despite lower Boeing 737 production. The defense and space segment saw revenue growth, driven by higher activity on the Sikorsky CH-53K program and non-recurring FLRAA program revenue. The aftermarket segment also experienced a slight revenue increase, primarily due to higher spare part sales, although operating margin decreased due to sales mix.