Spirit AeroSystems Reports Third Quarter 2025 Results

WICHITA, Kan., Oct. 31, 2025 /PRNewswire/ --

Third quarter 2025

Spirit AeroSystems Holdings, Inc. (NYSE: SPR) ("Spirit," "Spirit AeroSystems" or the "Company") reported third quarter 2025 financial results.

Revenue

Spirit's revenue in the third quarter of 2025 increased from the same period of 2024, primarily due to higher production activity on Boeing, Airbus and Defense & Space programs. Overall deliveries increased during the third quarter of 2025 compared to the same period of 2024. Boeing 737 deliveries were significantly higher year-over-year due to the delay in deliveries during 2024 caused by the joint product verification process initiated by Boeing.

Spirit's backlog at the end of the third quarter of 2025 was approximately $52 billion, which includes work packages on all commercial platforms in the Airbus and Boeing backlog.

Earnings

Operating loss in the third quarter of 2025 increased compared to the same period of 2024, primarily due to higher changes in estimates charges and lower program margins on Boeing programs, partially offset by lower excess capacity charges and a reversal of accrued liabilities.

Total changes in estimates in the third quarter of 2025 included net forward losses of $585 million and unfavorable cumulative catch-up adjustments of $14 million. The forward losses in the third quarter were primarily driven by the Boeing 737, Boeing 787, Airbus A220 and Airbus A350 programs, largely due to supply chain and production cost growth. Unfavorable cumulative catch-up adjustments were primarily driven by increased production costs on the Boeing 737 and 777 programs. Excess capacity costs during the third quarter of 2025 were $55 million. Additionally, in the third quarter of 2025, the Company reversed $48 million of accrued liabilities related to the favorable resolution of litigation with a former CEO. In comparison, in the third quarter of 2024, net forward losses were $217 million, unfavorable cumulative catch-up adjustments were $26 million, and excess capacity costs were $70 million.

Third quarter 2025 EPS was $(6.16), compared to $(4.07) in the same period of 2024. Adjusted to exclude the incremental deferred tax asset valuation allowance, third quarter 2025 adjusted EPS* was $(4.87), compared to $(3.03) in the third quarter of 2024.

Cash

Cash from operations and free cash flow* usage during the third quarter of 2025 improved compared to the same period of 2024, largely resulting from the timing of working capital driven by higher Boeing 737 deliveries. The Company's cash balance at the end of the third quarter of 2025 was $299 million.

Developments in 2024 resulted in significant reductions in projected revenue and cash flows over the next twelve months. These developments include production and delivery process changes implemented by Boeing, lower than planned 737 production rates and the lack of price increases on Airbus programs. Although the customer advances received in 2024 and 2025 have provided essential operational liquidity, there can be no assurance that Spirit will be able to obtain additional advances from customers, repay current advances on the specified due dates, renegotiate the due dates or otherwise obtain additional liquidity as needed under acceptable terms or at all. We will need to obtain additional funding to sustain operations, as we expect to continue generating operating losses for the foreseeable future.

Management has developed a plan designed to improve liquidity. These plans are dependent upon many factors, including, among other things, the outcomes of discussions related to customer advances including the timing or amounts of repayment for certain such advances, achieving forecasted 737 deliveries, the timing and expected proceeds received from certain divestitures and the expected timing and outcome of the transactions contemplated by the merger agreement with Boeing and the stock and asset purchase agreement with Airbus. Management is also evaluating additional strategies intended to improve liquidity to support operations, including, but not limited to, additional customer advances and restructuring of operations in an effort to increase efficiency and decrease expenses. However, there can be no assurance that these plans or strategies will sufficiently improve our liquidity needs or that we will otherwise realize the anticipated benefits. Accordingly, substantial doubt about the Company's ability to continue as a going concern exists.

Pending Boeing Acquisition of Spirit AeroSystems

On June 30, 2024, the Company entered into an Agreement and Plan of Merger with The Boeing Company (the "Merger Agreement"). Upon completion of the merger, subject to the terms and conditions of the Merger Agreement, the Company would become a wholly owned subsidiary of Boeing. The closing of the transaction is expected to occur in the fourth quarter of 2025, subject to the completion of the divestiture of certain portions of Spirit's business related to the performance by Spirit and its subsidiaries of their obligations under their supply contracts with Airbus SE and other closing conditions, including receipt of regulatory approvals. In connection with the proposed merger, Spirit and Boeing have each received a request for additional information ("second request") from the Federal Trade Commission as part of the regulatory review process under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"). The second request extends the waiting period imposed by the HSR Act until 30 days after Spirit and Boeing have substantially complied with the requests or the waiting period is terminated sooner by the Federal Trade Commission.

Subsequent Events

On October 13, 2025, the European Commission approved the proposed acquisition of Spirit AeroSystems Holdings, Inc. by The Boeing Company. The European Commission had concerns that the transaction, as initially notified, would have significantly reduced competition in the global markets for aerostructures and large commercial aircraft. To address the European Commission's concerns, Boeing offered to divest (i) all Spirit's businesses that currently supply Airbus with aerostructures, including all necessary assets and personnel, to Airbus; and (ii) Spirit's site in Malaysia, which supplies, among others, Airbus with aerostructures, to Composites Technology Research Malaysia Sdn. Bhd. ("CTRM"). The European Commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns, and approved of Airbus and CTRM as suitable buyers for the divested business. The decision is conditional upon full compliance with the commitments.

Segment Results

Commercial

Commercial segment revenue in the third quarter of 2025 increased from the same period of the prior year, primarily due to higher production activity on Airbus programs. Operating margin for the third quarter of 2025 decreased compared to the same period of 2024, primarily driven by higher changes in estimate charges recorded in the current period compared to the same period of 2024. In the third quarter of 2025, change in estimates for the segment included $578 million of net forward losses and $11 million of unfavorable cumulative catch-up adjustments. Additionally, during the third quarter of 2025, the Commercial segment included excess capacity costs of $43 million. In comparison, during the third quarter of 2024, the segment recognized $213 million of net forward losses, $38 million of unfavorable cumulative catch-up adjustments, and excess capacity costs of $66 million.

Defense & Space

Defense & Space segment revenue in the third quarter of 2025 increased from the same period of the prior year. This increase was primarily due to higher activity on the Boeing P-8 program. Operating margin for the third quarter of 2025 decreased compared to the same period of 2024, primarily due to higher unfavorable changes in estimates recorded on the KC-46 Tanker and Boeing P-8 programs, as well as higher excess capacity costs. During the third quarter of 2025, the segment recorded net forward losses of $8 million, unfavorable cumulative catch-up adjustments of $4 million and excess capacity costs of $12 million. In comparison, during the third quarter of 2024, the segment recorded net forward losses of $4 million, favorable cumulative catch-up adjustments of $12 million and excess capacity costs of $4 million.

Aftermarket

Aftermarket segment revenue in the third quarter of 2025 increased from the same period of the prior year, primarily due to higher spare part sales as well as higher maintenance, repair and overhaul (MRO) activity. Operating margin in the third quarter of 2025 was consistent with the third quarter of 2024.

Financial Outlook

In light of the Merger Agreement, and consistent with customary practice during the pendency of such transactions, Spirit will not provide guidance.

Additionally, due to the Merger Agreement, no conference call will be held in conjunction with this release. Full details of the Company's financial results are available in the Company's Quarterly Report on Form 10-Q.

* Non-GAAP financial measure, see Appendix for definition and reconciliation

Cautionary Statement Regarding Forward-Looking Statements

You should read the discussion of our financial condition and results of operations in conjunction with the unaudited condensed consolidated financial statements and the notes to the unaudited condensed consolidated financial statements appearing in the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. The press release may include "forward-looking statements" that involve many risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "aim," "anticipate," "believe," "could," "continue," "designed," "ensure," "estimate," "expect," "forecast," "goal," "intend," "may," "might," "model," "objective," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown, including, but not limited to, those described in the "Risk Factors" sections of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") (the "2024 Form 10-K") and subsequent Quarterly Reports on Form 10-Q. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements.

Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following:

These factors are not exhaustive, and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. You should review carefully the sections captioned "Risk Factors" in the 2024 Form 10-K and the Company's subsequent Quarterly Reports on Form 10-Q for a more complete discussion of these and other factors that may affect our business.

Table 1. Summary Financial Results (unaudited)

3rd Quarter

Nine Months

($ in millions, except per share data)

2025

2024

Change

2025

2024

Change

Net Revenues

$1,585

$1,471

8 %

$4,742

$4,665

2 %

Operating Loss

($647)

($350)

(85 %)

($1,614)

($1,209)

(34 %)

Operating Loss as a % of Revenues

(40.8 %)

(23.8 %)

(34.0 %)

(25.9 %)

(810) BPS

Net Loss

($724)

($477)

(52 %)

($1,968)

($1,509)

(30 %)

Net Loss as a % of Revenues

(45.7 %)

(32.4 %)

(41.5 %)

(32.3 %)

(920) BPS

Net Loss Per Share (Fully Diluted)

($6.16)

($4.07)

(51 %)

($16.75)

($12.93)

(30 %)

Adjusted Net Loss Per Share (Fully Diluted)*

($4.87)

($3.03)

(61 %)

($12.47)

($9.69)

(29 %)

Fully Diluted Weighted Avg Share Count

117.6

117.2

117.5

116.7

** Represents an amount in excess of 100% or not meaningful.

Table 2. Cash Flow, Cash and Total Debt (unaudited)

3rd Quarter

Nine Months

($ in millions)

2025

2024

Change

2025

2024

Change

Cash used in Operations

($187)

($276)

32 %

($750)

($1,258)

40 %

Purchases of Property, Plant & Equipment

($43)

($47)

9 %

($144)

($107)

(34 %)

Free Cash Flow*

($230)

($323)

29 %

($894)

($1,364)

34 %

October 2,

December 31,

Cash and Total Debt

2025

2024

Cash

$299

$537

Total Debt

$4,339

$4,394

** Represents an amount in excess of 100% or not meaningful.

Table 3. Segment Reporting (unaudited)

3rd Quarter

Nine Months

($ in millions)

2025

2024

Change

2025

2024

Change

Segment Revenues

Commercial

$1,170.1

$1,139.8

2.7 %

$3,598.0

$3,662.3

(1.8 %)

Defense & Space

304.1

231.3

31.5 %

831.1

706.5

17.6 %

Aftermarket

111.2

99.5

11.8 %

313.2

296.5

5.6 %

Total Segment Revenues

$1,585.4

$1,470.6

7.8 %

$4,742.3

$4,665.3

1.7 %

Segment (Loss) Earnings from Operations

Commercial

($613.4)

($299.4)

($1,312.5)

($1,054.8)

(24.4 %)

Defense & Space

(15.8)

44.8

(33.7)

95.7

Aftermarket

9.6

8.7

10.3 %

34.1

43.4

(21.4 %)

Total Segment Operating Loss

($619.6)

($245.9)

($1,312.1)

($915.7)

(43.3 %)

Segment Operating (Loss) Earnings as % of Revenues

Commercial

(52.4 %)

(26.3 %)

(36.5 %)

(28.8 %)

(770) BPS

Defense & Space

(5.2 %)

19.4 %

(4.1 %)

13.5 %

Aftermarket

8.6 %

8.7 %

(10) BPS

10.9 %

14.6 %

(370) BPS

Total Segment Operating Loss as % of Revenues

(39.1 %)

(16.7 %)

(27.7 %)

(19.6 %)

(810) BPS

Unallocated Expense

SG&A

($40.5)

($93.8)

56.8 %

($239.6)

($258.9)

7.5 %

Research & Development

(9.3)

(10.4)

10.6 %

(36.0)

(34.4)

(4.7 %)

Gain (Loss) on Dispositions of Businesses

22.9

(26.6)

Total Loss from Operations

($646.5)

($350.1)

(84.7 %)

($1,614.3)

($1,209.0)

(33.5 %)

Total Operating Loss as % of Revenues

(40.8 %)

(23.8 %)

(34.0 %)

(25.9 %)

(810) BPS

** Represents an amount in excess of 100% or not meaningful.

Spirit Shipset Deliveries

(one shipset equals one aircraft)

3rd Quarter

Nine Months

2025

2024

2025

2024

B737

330

135

B767

B777

B787

Total Boeing

126

423

216

A220

A320 Family

172

135

515

467

A330

A350

Total Airbus

217

178

667

594

Business/Regional Jet

161

165

Total

392

332

1,251

975

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

For the Three Months Ended

For the Nine Months Ended

October 2, 2025

September 26, 2024

October 2, 2025

September 26, 2024

($ in millions, except per share data)

Net revenues

$ 1,585.4

$ 1,470.6

$ 4,742.3

$ 4,665.3

Operating costs and expenses

Cost of sales

2,205.0

1,716.6

6,054.4

5,580.3

Selling, general and administrative

40.5

93.8

239.6

258.9

Restructuring costs

(0.1)

0.7

Research and development

9.3

10.4

36.0

34.4

(Gain) loss on dispositions of businesses, net

(22.9)

26.6

Total operating costs and expenses

2,231.9

1,820.7

6,356.6

5,874.3

Operating loss

(646.5)

(350.1)

(1,614.3)

(1,209.0)

Interest expense and financing fee amortization

(94.5)

(90.8)

(293.4)

(253.3)

Other income (expense), net

14.3

(33.0)

(29.9)

(30.3)

Loss before income taxes and equity in net income (loss) of affiliates

(726.7)

(473.9)

(1,937.6)

(1,492.6)

Income tax benefit (provision)

2.6

(2.8)

(29.7)

(15.9)

Loss before equity in net income (loss) of affiliates

(724.1)

(476.7)

(1,967.3)

(1,508.5)

Equity in net income (loss) of affiliates

0.1

(0.2)

0.2

Net loss

(724.0)

(476.6)

(1,967.5)

(1,508.3)

Less noncontrolling interest in earnings of subsidiary

(0.3)

(0.7)

(0.6)

Net loss attributable to common shareholders

$ (724.3)

$ (476.9)

$ (1,968.2)

$ (1,508.9)

Loss per share

Basic

$ (6.16)

$ (4.07)

$ (16.75)

$ (12.93)

Diluted

$ (6.16)

$ (4.07)

$ (16.75)

$ (12.93)

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

October 2, 2025

December 31, 2024

($ in millions)

Assets

Cash and cash equivalents

$ 299.0

$ 537.0

Accounts receivable, net

323.6

395.3

Contract assets, short-term

476.4

777.9

Inventory, net

1,213.9

1,891.7

Assets of business held for sale

1,376.5

100.6

Other current assets

36.0

58.0

Total current assets

3,725.4

3,760.5

Property, plant and equipment

1,427.2

1,947.9

Right of use assets

63.5

79.0

Pension assets

60.7

49.4

Restricted plan assets

6.4

41.2

Deferred income taxes

0.1

Goodwill

624.0

630.0

Intangible assets, net

117.5

149.5

Other assets

80.2

105.2

Total assets

$ 6,104.9

$ 6,762.8

Liabilities

Accounts payable

$ 899.5

$ 1,041.1

Accrued expenses

453.8

453.3

Profit sharing

49.9

59.0

Current portion of long-term debt

690.9

424.5

Operating lease liabilities, short-term

8.2

10.0

Advance payments, short-term

99.8

158.1

Contract liabilities, short-term

134.5

270.3

Forward loss provision, short-term

407.4

471.5

Deferred revenue and other deferred credits, short-term

11.8

75.4

Customer financing, short-term

746.7

532.0

Liabilities of business held for sale

1,902.4

18.8

Other current liabilities

55.3

53.4

Total current liabilities

5,460.2

3,567.4

Long-term debt

3,647.7

3,969.7

Operating lease liabilities, long-term

58.9

69.8

Advance payments, long-term

143.3

181.0

Pension/OPEB obligation

22.4

24.9

Contract liabilities, long-term

153.8

177.4

Forward loss provision, long-term

537.2

799.8

Deferred revenue and other deferred credits, long-term

11.0

46.7

Deferred grant income liability - non-current

6.3

25.1

Deferred income taxes

3.8

7.8

Customer financing, long-term

336.9

372.0

Other non-current liabilities

241.5

137.2

Stockholders' Equity (Deficit)

Common stock, Class A par value $0.01, 200,000,000 shares authorized,

117,512,855 and 117,266,121 shares issued and outstanding, respectively

1.2

Additional paid-in capital

1,477.1

1,457.6

Accumulated other comprehensive loss

(54.2)

(100.1)

Retained earnings

(3,491.7)

(1,523.5)

Treasury stock, at cost (41,587,480 shares each period, respectively)

(2,456.7)

Total stockholders' equity

(4,524.3)

(2,621.5)

Noncontrolling interest

6.2

5.5

Total equity

(4,518.1)

(2,616.0)

Total liabilities and equity

$ 6,104.9

$ 6,762.8

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

For the Nine Months Ended

October 2, 2025

September 26, 2024

Operating activities

($ in millions)

Net loss

$ (1,967.5)

$ (1,508.3)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization expense

188.5

232.9

Amortization of deferred financing fees

14.6

8.9

Accretion of customer supply agreement

1.6

1.8

Employee stock compensation expense

21.1

30.8

Gain from derivative instruments

(0.9)

(2.9)

Loss from foreign currency transactions

41.5

27.1

Loss on disposition of assets

8.1

1.3

Deferred taxes

25.2

6.9

Pension and other post-retirement plans income

(3.0)

(8.9)

Grant liability amortization

(0.9)

Equity in net loss (income) of affiliates

0.2

(0.2)

Forward loss provision

552.1

524.9

Gain on settlement of financial instrument

(0.5)

(1.2)

Asset impairment charges

30.0

0.2

Gain on settlement of New Market Tax Credit incentive program

(5.7)

Loss on dispositions of businesses

26.6

Changes in assets and liabilities

Accounts receivable, net

(73.7)

31.8

Inventory, net

(24.8)

(245.8)

Contract assets

234.5

(557.3)

Accounts payable and accrued liabilities

151.7

65.4

Profit sharing/deferred compensation

2.5

37.6

Advance payments

4.0

5.2

Income taxes receivable/payable

3.7

5.5

Contract liabilities

(117.3)

88.4

Pension plans employer contributions

(2.3)

(2.2)

Deferred revenue and other deferred credits

(29.6)

(0.7)

Warranty liabilities

115.3

3.7

Other

48.9

4.2

Net cash used in operating activities

(750.4)

(1,257.5)

Investing activities

Purchase of property, plant and equipment

(143.6)

(106.8)

Proceeds from dispositions of businesses

167.1

Other

11.6

0.1

Net cash provided by (used in) investing activities

35.1

(106.7)

Financing activities

Proceeds from issuance of debt

359.2

Receipts from customer financing

580.3

509.4

Payments on customer financing

(7.5)

(40.0)

Payments on bonds

(20.8)

Principal payments of debt

(37.7)

(46.5)

Payments on term loans

(4.5)

(3.0)

Payment on financing of New Market Tax Credit incentive program

(1.9)

Taxes paid related to net share settlement awards

(1.6)

(5.4)

Proceeds from issuance of ESPP stock

3.8

Debt issuance and financing costs

(2.2)

(10.8)

Net cash provided by financing activities

506.0

764.8

Effect of exchange rate changes on cash and cash equivalents

(2.8)

0.3

Net decrease in cash, cash equivalents, and restricted cash for the period

(212.1)

(599.1)

Cash, cash equivalents, and restricted cash, beginning of period

566.5

845.9

Cash, cash equivalents, and restricted cash, end of period

$ 354.4

$ 246.8

Reconciliation of Cash, Cash Equivalents, and Restricted Cash:

For the Nine Months Ended

October 2, 2025

September 26, 2024

Cash and cash equivalents, beginning of the period

$ 537.0

$ 823.5

Cash and cash equivalents, held for sale, beginning of the period

Restricted cash, short-term, beginning of the period

0.1

Restricted cash, long-term, beginning of the period

29.5

22.3

Cash, cash equivalents, and restricted cash, beginning of the period

$ 566.5

$ 845.9

Cash and cash equivalents, end of the period

$ 299.0

$ 217.6

Cash and cash equivalents, held for sale, end of the period

21.6

Restricted cash, short-term, end of the period

Restricted cash, long-term, end of the period

33.8

29.2

Cash, cash equivalents, and restricted cash, end of the period

$ 354.4

$ 246.8

Appendix

In addition to reporting our financial information using U.S. Generally Accepted Accounting Principles (GAAP), management believes that certain non-GAAP measures (which are indicated by * in this press release) provide investors with important perspectives into the company's ongoing business performance. The non-GAAP measures we use in this press release are (i) adjusted diluted earnings (loss) per share and (ii) free cash flow, which are described further below. The Company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define and calculate the measures differently than we do, limiting the usefulness of the measures for comparison with other companies.

Adjusted Diluted Earnings (Loss) Per Share. To provide additional transparency, we have disclosed non-GAAP adjusted diluted earnings (loss) per share (Adjusted EPS). This metric excludes various items that are not considered to be directly related to our operating performance. Management uses Adjusted EPS as a measure of business performance, and we believe this information is useful in providing period-to-period comparisons of our results. The most comparable GAAP measure is diluted earnings (loss) per share.

Free Cash Flow. Free Cash Flow is defined as GAAP cash provided by (used in) operating activities (also referred to herein as "cash from operations"), less capital expenditures for property, plant and equipment. Management believes Free Cash Flow provides investors with an important perspective on the cash available for stockholders, debt repayments including capital leases, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures. The most comparable GAAP measure is cash provided by (used in) operating activities. Management uses Free Cash Flow as a measure to assess both business performance and overall liquidity.

The tables below provide reconciliations between the GAAP and non-GAAP measures.

Adjusted EPS

3rd Quarter

Nine Months

2025

2024

2025

2024

GAAP Diluted (Loss) Earnings Per Share

($6.16)

($4.07)

($16.75)

($12.93)

Deferred Tax Asset Valuation Allowance (a)

1.29

1.04

4.28

3.24

Adjusted Diluted (Loss) Earnings Per Share

($4.87)

($3.03)

($12.47)

($9.69)

Diluted Shares (in millions)

117.6

117.2

117.5

116.7

(a) Represents the deferred tax asset valuation allowance (included in Income tax provision)

Free Cash Flow

3rd Quarter

Nine Months

($ in millions)

2025

2024

2025

2024

Cash from Operations

($187)

($276)

($750)

($1,258)

Capital Expenditures

(43)

(47)

(144)

(107)

Free Cash Flow

($230)

($323)

($894)

($1,364)

SOURCE Spirit AeroSystems Holdings, Inc.