Spirit AeroSystems Reports Q3 2025 Results

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Spirit AeroSystems Holdings, Inc. reported third quarter 2025 financial results.
Third Quarter 2025 Highlights:

• Revenues of $1.6 billion
• EPS of $(6.16); Adjusted EPS* of $(4.87)
• Cash used in operations of $187 million; Free cash flow* usage of $230 million

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.

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