Spirit AeroSystems Reports $612.9 Million Net Loss, Faces Ongoing Operational Challenges

Spirit AeroSystems Holdings, Inc. reported a net loss of $612.9 million for the three months ended April 3, 2025, a slight improvement from a net loss of $616.7 million in the same period last year. The company's net revenues decreased by 10.6% to $1.52 billion, down from $1.70 billion in the prior year, primarily due to lower production levels from Boeing, which accounted for a significant portion of its revenue. Operating loss for the quarter was $487.0 million, compared to a loss of $527.6 million in the previous year, reflecting a reduction in negative cumulative catch-up adjustments and forward losses.

The company experienced a notable increase in operational costs, with total operating expenses amounting to $2.01 billion, down from $2.23 billion a year earlier. This decrease was attributed to a gain on the disposition of businesses amounting to $80.4 million, which offset some of the costs. Selling, general, and administrative expenses rose to $91.8 million from $81.5 million, driven by increased costs related to merger activities. Research and development expenses also increased to $14.5 million from $10.6 million, reflecting ongoing investments in product development.

Strategically, Spirit AeroSystems is navigating significant changes, including a merger agreement with Boeing and a stock and asset purchase agreement with Airbus. The merger, announced on June 30, 2024, is expected to close in the third quarter of 2025, subject to regulatory approvals and other conditions. The Airbus agreement, finalized on April 27, 2025, involves the acquisition of certain Spirit businesses for $439 million, with nominal consideration of one dollar. These strategic moves are part of the company's efforts to streamline operations and enhance liquidity amid ongoing challenges in the aerospace sector.

Operationally, Spirit AeroSystems reported a total of 429 shipsets delivered in the first quarter of 2025, a significant increase from 307 shipsets in the same period last year. Deliveries to Boeing rose to 145 shipsets, up from 70, while Airbus deliveries increased to 236 shipsets from 191. The company continues to face challenges related to production and delivery processes, particularly due to changes implemented by Boeing that have affected cash flows and inventory levels. As of April 3, 2025, Spirit's cash and cash equivalents stood at $220.2 million, down from $537.0 million at the end of 2024, indicating ongoing liquidity concerns.

Looking ahead, Spirit AeroSystems anticipates continued operational challenges, including the need for additional liquidity to sustain operations over the next 12 months. The company is actively pursuing strategies to improve its financial position, including potential customer advances and operational restructuring. However, substantial doubt remains regarding its ability to continue as a going concern, given the ongoing losses and the need for further funding.