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Spirit AeroSystems Reports Third Quarter 2024 Results

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Spirit AeroSystems (NYSE: SPR) reported third quarter 2024 financial results with revenues of $1.5 billion and EPS of $(4.07). The company experienced cash usage of $276 million in operations and free cash flow usage of $323 million. The quarter was impacted by higher unfavorable changes in estimates, including net forward losses of $217 million, primarily from Boeing 787 and Airbus A220 programs. The company announced furloughs for approximately 700 employees due to the ongoing Boeing IAM strike. Spirit's backlog stands at $48 billion, while the pending Boeing acquisition is expected to close in mid-2025.

Spirit AeroSystems (NYSE: SPR) ha riportato i risultati finanziari del terzo trimestre 2024, con fatturato di 1,5 miliardi di dollari e un utile per azione (EPS) di $(4,07). L'azienda ha registrato un utilizzo di cassa di 276 milioni di dollari nelle operazioni e un utilizzo di flusso di cassa libero di 323 milioni di dollari. Il trimestre è stato influenzato da cambiamenti sfavorevoli nelle stime, compresi perdite nette future di 217 milioni di dollari, principalmente dai programmi Boeing 787 e Airbus A220. L'azienda ha annunciato la cassa integrazione per circa 700 dipendenti a causa dello sciopero in corso dei lavoratori Boeing IAM. Il portafoglio ordini di Spirit ammonta a 48 miliardi di dollari, mentre l'acquisizione di Boeing è prevista per la metà del 2025.

Spirit AeroSystems (NYSE: SPR) informó los resultados financieros del tercer trimestre de 2024, con ingresos de 1.5 mil millones de dólares y una EPS de $(4.07). La compañía experimentó un uso de efectivo de 276 millones de dólares en operaciones y un uso de flujo de caja libre de 323 millones de dólares. El trimestre se vio afectado por cambios desfavorables en las estimaciones, incluyendo pérdidas netas esperadas de 217 millones de dólares, principalmente de los programas Boeing 787 y Airbus A220. La empresa anunció despidos temporales para aproximadamente 700 empleados debido a la huelga en curso de los trabajadores de Boeing IAM. El backlog de Spirit se sitúa en 48 mil millones de dólares, mientras que se espera que la adquisición pendiente de Boeing se cierre a mediados de 2025.

스피릿 에어로시스템즈 (NYSE: SPR)는 2024년 3분기 재무 결과를 보고했으며, 수익은 15억 달러이고 주당 순이익(EPS)은 $(4.07)입니다. 이 회사는 운영에서 2억 7600만 달러의 현금 사용과 자유 현금 흐름 사용으로 3억 2300만 달러를 기록했습니다. 이번 분기는 추정치의 불리한 변화의 영향으로, 주로 보잉 787 및 에어버스 A220 프로그램으로부터의 순 손실 2억 1700만 달러가 포함되었습니다. 스피릿은 보잉 IAM 노조의 지속적인 파업으로 인해 약 700명의 직원에게 휴가를 발표했습니다. 스피릿의 미수금은 480억 달러에 달하며, 보잉 인수는 2025년 중반에 마감될 것으로 예상됩니다.

Spirit AeroSystems (NYSE: SPR) a annoncé ses résultats financiers pour le troisième trimestre 2024, avec des revenus de 1,5 milliard de dollars et un BPA de $(4,07). L'entreprise a enregistré une utilisation de trésorerie de 276 millions de dollars dans ses opérations et une utilisation de flux de trésorerie libre de 323 millions de dollars. Le trimestre a été marqué par des modifications défavorables des estimations, y compris des pertes futures nettes de 217 millions de dollars, principalement des programmes Boeing 787 et Airbus A220. L'entreprise a annoncé des congés pour environ 700 employés en raison de la grève en cours des employés de Boeing IAM. Le carnet de commandes de Spirit s'élève à 48 milliards de dollars, tandis que l'acquisition de Boeing devrait se conclure à la mi-2025.

Spirit AeroSystems (NYSE: SPR) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit Einnahmen von 1,5 Milliarden Dollar und einem EPS von $(4,07). Das Unternehmen verzeichnete einen Cashverbrauch von 276 Millionen Dollar im operativen Geschäft und einen Verbrauch des freien Cashflows von 323 Millionen Dollar. Das Quartal wurde von höheren nachteiligen Änderungen der Schätzungen beeinflusst, darunter Nettoverluste von 217 Millionen Dollar, hauptsächlich aus den Programmen Boeing 787 und Airbus A220. Spirit kündigte Kurzarbeit für etwa 700 Mitarbeiter aufgrund des andauernden Streiks der Boeing IAM an. Das Auftragsbuch von Spirit steht bei 48 Milliarden Dollar, während der bevorstehende Erwerb von Boeing voraussichtlich Mitte 2025 abgeschlossen sein wird.

Positive
  • Backlog remains strong at $48 billion
  • Defense & Space segment revenue increased with higher CH-53K program activity
  • Aftermarket segment revenue increased due to higher spare part sales
Negative
  • Operating loss increased compared to Q3 2023
  • Net forward losses of $217 million primarily from Boeing 787 and Airbus A220 programs
  • Cash used in operations of $276 million
  • Implementing furloughs for 700 employees due to Boeing strike
  • Significant reductions in projected revenue and cash flows expected over next 12 months
  • Lower than planned 737 production rates affecting performance

Insights

The Q3 results reveal significant operational challenges at Spirit AeroSystems. The company reported $1.5 billion in revenue but posted a concerning loss of $(4.07) per share, with adjusted EPS at $(3.03). The $276 million cash burn and $323 million free cash flow usage signal severe liquidity pressure.

Key concerns include $217 million in net forward losses, primarily from Boeing 787 and Airbus A220 programs and $70 million in excess capacity costs. The $425 million Boeing advance remains unpaid and the ongoing Boeing IAM strike has forced furloughs of 700 employees. With a $218 million cash balance and $350 million bridge loan due March 2025, liquidity remains tight despite the pending Boeing acquisition.

The operational metrics paint a concerning picture of Spirit's manufacturing efficiency. While total deliveries remained flat at 332 shipsets, production issues persist across major programs. The Boeing 787 and A220 programs generated substantial losses due to production inefficiencies and supply chain challenges. The implementation of furloughs and cost-saving measures amid the Boeing strike suggests deeper structural problems.

The $48 billion backlog provides long-term visibility but near-term execution remains challenging. The pending Boeing acquisition, while potentially providing stability, faces regulatory hurdles with the FTC second request and the required Airbus-related divestitures add complexity to the deal's completion.

WICHITA, Kan., Oct. 23, 2024 /PRNewswire/ --

Third Quarter 2024

  • Revenues of $1.5 billion
  • EPS of $(4.07); Adjusted EPS* of $(3.03)
  • Cash used in operations of $276 million; Free cash flow* usage of $323 million

Spirit AeroSystems Holdings, Inc. (NYSE: SPR) ("Spirit," "Spirit AeroSystems" or the "Company") reported third quarter 2024 financial results.

"We remain on track to close the acquisition by Boeing in mid-2025, while also continuing to focus on safety, compliance and quality," said Pat Shanahan, President and Chief Executive Officer, Spirit AeroSystems.

"Our process improvement initiatives helped drive our third quarter free cash flow usage in half from the second quarter, and we are demonstrating solid momentum heading into the fourth quarter," said Irene Esteves, Executive Vice President and Chief Financial Officer, Spirit AeroSystems.

Impact of Boeing IAM Strike

On October 18, 2024, the Company announced employee furloughs as well as other cost savings measures, including a hiring freeze and travel and overtime restrictions, in response to the ongoing strike by Boeing employees represented by the International Association of Machinists and Aerospace Workers ("IAM") that began on September 13. Effective October 28, Spirit will implement a 21-day furlough for approximately 700 employees working on the 767 and 777 programs due to the buildup of a significant inventory buffer on those programs. If the strike continues beyond November, financial pressures may require the Company to implement layoffs and additional furloughs.

Revenue

Spirit's revenue in the third quarter of 2024 increased from the same period of 2023, primarily due to higher production activities on most Commercial programs and higher Defense and Space revenues, partially offset by lower production volume on the Boeing 737 program. Overall deliveries were consistent in the third quarters of 2024 and 2023, with 332 shipsets delivered in both periods.

Spirit's backlog at the end of the third quarter of 2024 was approximately $48 billion, which includes work packages on all commercial platforms in the Airbus and Boeing backlog.

Earnings

Operating loss for the third quarter of 2024 was higher compared to the same period of 2023, largely driven by the higher unfavorable changes in estimates during the current period. Total change in estimates in the third quarter of 2024 included net forward losses of $217 million and unfavorable cumulative catch-up adjustments for periods prior to the third quarter of $26 million. Net forward losses were mainly driven by the Boeing 787 and Airbus A220 programs of $109 million and $64 million, respectively, resulting from production performance as well as labor and supply chain cost growth. Unfavorable cumulative catch-up adjustments were primarily related to the Boeing 737 and 777 programs of $24 million and $16 million, respectively, and were primarily driven by higher production costs. Excess capacity costs during the third quarter of 2024 were $70 million. In comparison, during the third quarter of 2023, Spirit recognized $101 million of net forward losses, $64 million of unfavorable cumulative catch-up adjustments and excess capacity costs of $56 million.

Third quarter 2024 EPS was $(4.07), compared to $(1.94) in the same period of 2023. Adjusted to exclude the incremental deferred tax asset valuation allowance in each period, third quarter 2024 adjusted EPS* was $(3.03), compared to $(1.42) in the third quarter of 2023.   

Cash

Cash from operations and free cash flow* during the third quarter of 2024 were negatively impacted by the Boeing 737 delivery delays related to the joint production verification process and the timing of working capital.

In the third quarter of 2024, as disclosed as a subsequent event in the second quarter of 2024, the Company entered into a delayed-draw bridge credit agreement that provided for a senior secured delayed-draw bridge term loan facility in an aggregate principal amount of $350 million. As of the end of the third quarter of 2024, the entire amount was borrowed. Such borrowings are scheduled to mature on March 31, 2025, subject to automatic extension for one additional three-month period if the term of the Merger Agreement (as defined below) is extended. The Company's cash balance at the end of the third quarter of 2024 was $218 million.

Developments in 2024 have 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. As previously disclosed, Spirit entered into a Memorandum of Agreement (the "MOA"), under which Boeing provided an advance of $425 million. This advance remains unpaid as of the end of the third quarter of 2024. Management is implementing plans designed to improve liquidity and these plans are dependent upon many factors, including, among others, the outcomes of active discussions related to the timing or amounts of repayment for certain customer advances, including the advance received under the MOA, achieving forecasted 737 deliveries, and the outcome of the ongoing strike by Boeing employees. Management expects these plans to improve the Company's liquidity and meet the Company's cash demands through the closing of the Boeing acquisition.

Management is also evaluating additional strategies intended to improve liquidity to support operations, including, but not limited to, additional customer advances, issuing incremental debt financing (subject to any contractual limitations and conditions, including in the Merger Agreement (as defined below)), 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.

Pending Boeing Acquisition of Spirit AeroSystems Update

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 mid-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 approval of the merger agreement by Spirit shareholders and 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 Hard-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.

Segment Results

Commercial

Commercial segment revenue in the third quarter of 2024 increased slightly from the same period of the prior year, primarily due to higher production across most programs, partially offset by lower production volume on the Boeing 737 program. Operating margin for the third quarter of 2024 decreased compared to the same period of 2023, primarily driven by higher changes in estimates. In the third quarter of 2024, change in estimates for the segment included $213 million of net forward losses and $38 million of unfavorable cumulative catch-up adjustments. Additionally, during the third quarter of 2024, the Commercial segment included excess capacity costs of $66 million. In comparison, during the third quarter of 2023, the segment recognized $87 million of net forward losses, $59 million of unfavorable cumulative catch-up adjustments, and excess capacity costs of $54 million.

Defense & Space

Defense & Space segment revenue in the third quarter of 2024 increased from the same period of the prior year. This increase was primarily due to higher activity on the Sikorsky CH-53K program and non-recurring revenue on the FLRAA program associated with Spirit's closeout of the program, partially offset by lower production on the Boeing P-8 program. Operating margin for the third quarter of 2024 increased compared to the same period of 2023, primarily due to higher activities on the Sikorsky CH-53K program, the non-recurring FLRAA program revenue mentioned above, as well as favorable cumulative catch-up adjustments of $12 million, primarily related to strategic program activity. In comparison, during the third quarter of 2023, the segment recorded $5 million of unfavorable cumulative catch-up adjustments.  

Aftermarket

Aftermarket segment revenue in the third quarter of 2024 increased slightly from the same period of the prior year, primarily due to higher spare part sales. Operating margin in the third quarter of 2024 decreased compared to the third quarter of 2023, primarily due to sales mix.

2024 Financial Outlook

In light of the previously announced Merger Agreement with Boeing, 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" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current expectations or forecasts of future events. 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, 2023, filed with the U.S. Securities and Exchange Commission (the "SEC") on February 22, 2024 (the "2023 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:

  • our ability to satisfy our liquidity needs, the success of our liquidity enhancement plans, operational and efficiency initiatives, our ability to access the capital and credit markets (including as a result of any contractual limitations, including the Merger Agreement), the outcomes of active discussions related to the timing or amounts of repayment for certain customer advances and pricing adjustments on certain loss-making programs, and the costs and terms of any additional financing;
  • the continued fragility of the global aerospace supply chain including our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components, including increases in energy, freight, and other raw material costs as a result of inflation or continued global inflationary pressures;
  • our ability and our suppliers' ability and willingness to meet stringent delivery (including quality and timeliness) standards and accommodate changes in the build rates or model mix of aircraft under existing contractual commitments, including the ability or willingness to staff appropriately or expend capital for current production volumes and anticipated production volume increases;
  • our ability to maintain continuing, uninterrupted production at our manufacturing facilities and our suppliers' facilities;
  • our ability, and our suppliers' ability, to attract and retain the skilled work force necessary for production and development in an extremely competitive market;
  • the effect of economic conditions, including increases in interest rates and inflation, on the demand for our and our customers' products and services, on the industries and markets in which we operate in the U.S. and globally, and on the global aerospace supply chain;
  • the general effect of geopolitical conditions, including Russia's invasion of Ukraine and the resultant sanctions being imposed in response to the conflict, including any trade and transport restrictions;
  • the recent outbreak of war in Israel and the Gaza Strip and the potential for expansion of the conflict in the surrounding region, which may impact certain suppliers' ability to continue production or make timely deliveries of supplies required to produce and timely deliver our products, and may result in sanctions being imposed in response to the conflict, including trade and transport restrictions;
  • our relationships with the unions representing many of our employees, including our ability to successfully negotiate new agreements, and avoid labor disputes and work stoppages with respect to our union employees;
  • the impact of significant health events, such as pandemics, contagions or other public health emergencies (including the COVID-19 pandemic) or fear of such events, on the demand for our and our customers' products and services, the industries and the markets in which we operate in the U.S. and globally;
  • the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft;
  • our reliance on The Boeing Company ("Boeing") and Airbus SE and its affiliates for a significant portion of our revenues;
  • the business condition and liquidity of our customers and their ability to satisfy their contractual obligations to the Company;
  • the certainty of our backlog, including the ability of customers to cancel or delay orders prior to shipment on short notice, and the potential impact of regulatory approvals of existing and derivative models;
  • our ability to accurately estimate and manage performance, cost, margins, and revenue under our contracts, and the potential for additional forward losses on new and maturing programs;
  • our accounting estimates for revenue and costs for our contracts and potential changes to those estimates;
  • our ability to continue to grow and diversify our business, execute our growth strategy, and secure replacement programs, including our ability to enter into profitable supply arrangements with additional customers;
  • the outcome of product warranty or defective product claims and the impact settlement of such claims may have on our accounting assumptions;
  • competitive conditions in the markets in which we operate, including in-sourcing by commercial aerospace original equipment manufacturers;
  • our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing, Airbus and its affiliates and other customers;
  • the possibility that our cash flows may not be adequate for our additional capital needs;
  • any reduction in our credit ratings;
  • our ability to avoid or recover from cyber or other security attacks and other operations disruptions;
  • legislative or regulatory actions, both domestic and foreign, impacting our operations, including the effect of changes in tax laws and rates and our ability to accurately calculate and estimate the effect of such changes;
  • spending by the U.S. and other governments on defense;
  • pension plan assumptions and future contributions;
  • the effectiveness of our internal control over financial reporting;
  • the outcome or impact of ongoing or future litigation, arbitration, claims, and regulatory actions or investigations, including our exposure to potential product liability and warranty claims;
  • adequacy of our insurance coverage;
  • our ability to continue selling certain receivables through the receivables financing programs;
  • our ability to effectively integrate recent acquisitions, along with other acquisitions we pursue, and generate synergies and other cost savings therefrom, while avoiding unexpected costs, charges, expenses, and adverse changes to business relationships and business disruptions;
  • the risks of doing business internationally, including fluctuations in foreign currency exchange rates, impositions of tariffs or embargoes, trade restrictions, compliance with foreign laws, and domestic and foreign government policies; and
  • risks and uncertainties relating to the proposed acquisition of Spirit by Boeing (the "Merger") pursuant to the Merger Agreement and the transactions contemplated by our term sheet with Airbus SE (the "Airbus Business Disposition" and, together with the Merger, the "Transactions"), including, among others, the possibility that we are unable to negotiate and enter into definitive agreements with Airbus SE and its affiliates with respect to the Airbus Business Disposition; the possible inability of the parties to a Transaction to obtain the required regulatory approvals for such Transaction and to satisfy the other conditions to the closing of such Transaction (including, in the case of the Merger, approval of the Merger Agreement by Spirit stockholders) on a timely basis or at all; the possible occurrence of events that may give rise to a right of one or more of the parties to the Merger Agreement to terminate the Merger Agreement; the risk that the Merger Agreement is terminated under circumstances requiring us to pay a termination fee; the risk that we are unable to consummate the Transactions on a timely basis or at all for any reason, including, without limitation, failure to obtain the required regulatory approvals, failure to obtain Spirit stockholder approval of the Merger Agreement or failure to satisfy other conditions the closing of either of the Transactions; the potential for the pendency of the Transactions or any failure to consummate the Transactions to adversely affect the market price of Spirit common stock or our financial performance or business relationships; risks relating to the value of Boeing common stock to be issued in the Merger; the possibility that the anticipated benefits of the Transactions cannot be realized in full or at all or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of our operations with those of Boeing will be greater than expected; risks relating to significant transaction costs; the intended or actual tax treatment of the Transactions; litigation or other legal or regulatory action relating to the Transactions or otherwise relating to us or other parties to the Transactions instituted against us or such other parties or Spirit's or such other parties' respective directors and officers and the effect of the outcome of any such litigation or other legal or regulatory action; risks associated with contracts containing provisions that may be triggered by the Transactions; potential difficulties in retaining and hiring key personnel or arising in connection with labor disputes during the pendency of or following the Transactions; the risk of other Transaction-related disruptions to our business, including business plans and operations; the potential for the Transactions to divert the time and attention of management from ongoing business operations; the potential for contractual restrictions under the agreements relating to the Transactions to adversely affect our ability to pursue other business opportunities or strategic transactions; and competitors' responses to the Transactions.

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 2023 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)

2024

2023

Change

2024

2023

Change








Net Revenues

$1,471

$1,439

2 %

$4,665

$4,235

10 %

Operating Loss

($350)

($134)

 ** 

($1,209)

($349)

**

Operating Loss as a % of Revenues

(23.8 %)

(9.3 %)

 ** 

(25.9 %)

(8.2 %)

**

Net Loss

($477)

($204)

 ** 

($1,509)

($692)

**

Net Loss as a % of Revenues

(32.4 %)

(14.2 %)

 ** 

(32.3 %)

(16.3 %)

**

Net Loss Per Share (Fully Diluted)

($4.07)

($1.94)

 ** 

($12.93)

($6.58)

(97 %)

Adjusted Net Loss Per Share (Fully Diluted)*

($3.03)

($1.42)

 ** 

($9.69)

($4.59)

**

Fully Diluted Weighted Avg Share Count

117.2

105.2


116.7

105.1









**   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)

2024

2023

Change

2024

2023

Change








Cash used in Operations

($276)

($111)

**

($1,258)

($340)

**

Purchases of Property, Plant & Equipment

($47)

($25)

(85 %)

($107)

($77)

(40 %)

Free Cash Flow*

($323)

($136)

**

($1,364)

($416)

**












September 26,

December 31,


Cash and Total Debt




2024

2023


Cash




$218

$824


Total Debt




$4,403

$4,084









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

 

Table 3.  Segment Reporting (unaudited)




3rd Quarter

Nine Months

($ in millions)

2024

2023

Change

2024

2023

Change








Segment Revenues







   Commercial

$1,139.8

$1,136.4

0.3 %

$3,662.3

$3,367.9

8.7 %

   Defense & Space

231.3

205.7

12.4 %

706.5

583.7

21.0 %

   Aftermarket

99.5

96.8

2.8 %

296.5

283.4

4.6 %

Total Segment Revenues

$1,470.6

$1,438.9

2.2 %

$4,665.3

$4,235.0

10.2 %








Segment (Loss) Earnings from Operations







   Commercial

($299.4)

($82.1)

**

($1,054.8)

($200.5)

**

   Defense & Space

44.8

9.8

**

95.7

41.0

**

   Aftermarket

8.7

17.9

(51.4 %)

43.4

61.4

(29.3 %)

Total Segment Operating Loss

($245.9)

($54.4)

**

($915.7)

($98.1)

**








Segment Operating (Loss) Earnings as % of Revenues







   Commercial

(26.3 %)

(7.2 %)

 ** 

(28.8 %)

(6.0 %)

 ** 

   Defense & Space

19.4 %

4.8 %

 ** 

13.5 %

7.0 %

  650  BPS 

   Aftermarket

8.7 %

18.5 %

  (980) BPS 

14.6 %

21.7 %

 (710) BPS

Total Segment Operating Loss as % of Revenues

(16.7 %)

(3.8 %)

 ** 

(19.6 %)

(2.3 %)

 ** 








Unallocated Expense







SG&A

($93.8)

($69.2)

(35.5 %)

($258.9)

($217.2)

(19.2 %)

Research & Development

(10.4)

(10.1)

(3.0 %)

(34.4)

(33.9)

(1.5 %)

Total Loss from Operations

($350.1)

($133.7)

**

($1,209.0)

($349.2)

**








Total Operating Loss as % of Revenues

(23.8 %)

(9.3 %)

 ** 

(25.9 %)

(8.2 %)

 ** 








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

 

Spirit Shipset Deliveries

(one shipset equals one aircraft)











3rd Quarter


Nine Months



2024

2023


2024


2023

B737


64

83


135


252

B767


6

7


20


24

B777


9

9


25


23

B787


9

9


36


25

Total Boeing


88

108


216


324









A220 


19

16


56


43

A320 Family


135

129


467


423

A330


11

8


27


26

A350


13

12


44


37

Total Airbus


178

165


594


529









Business/Regional Jet


66

59


165


167









Total


332

332


975


1,020

 

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Statements of Operations

(unaudited)






For the Three Months Ended


For the Nine Months Ended


September 26, 2024


September 28, 2023


September 26, 2024


September 28, 2023


($ in millions, except per share data)

















Net Revenues

$                 1,470.6


$                 1,438.9


$                 4,665.3


$                 4,235.0

Operating costs and expenses








Cost of sales

1,716.6


1,492.5


5,580.3


4,320.2

Selling, general and administrative

93.8


69.2


258.9


217.2

Restructuring costs

(0.1)


-


0.7


7.2

Research and development

10.4


10.1


34.4


33.9

Other operating expense

-


0.8


-


5.7

Total operating costs and expenses

1,820.7


1,572.6


5,874.3


4,584.2

Operating loss

(350.1)


(133.7)


(1,209.0)


(349.2)

Interest expense and financing fee amortization

(90.8)


(75.1)


(253.3)


(221.1)

Other (expense) income, net

(33.0)


7.3


(30.3)


(120.0)

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

(473.9)


(201.5)


(1,492.6)


(690.3)

Income tax provision

(2.8)


(2.4)


(15.9)


(1.1)

Loss before equity in net income (loss) of affiliates

(476.7)


(203.9)


(1,508.5)


(691.4)

Equity in net income (loss) of affiliates

0.1


-


0.2


(0.2)

Net loss

(476.6)


(203.9)


(1,508.3)


(691.6)

Less noncontrolling interest in earnings of subsidiary

(0.3)


(0.2)


(0.6)


-

Net loss attributable to common shareholders

$                  (476.9)


$                  (204.1)


$               (1,508.9)


$                  (691.6)

Loss per share








Basic

$                    (4.07)


$                    (1.94)


$                  (12.93)


$                    (6.58)

Diluted

$                    (4.07)


$                    (1.94)


$                  (12.93)


$                    (6.58)

 

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


September 26, 2024


December 31, 2023


($ in millions)

Assets




Cash and cash equivalents

$                   217.6


$                  823.5

Restricted cash

-


0.1

Accounts receivable, net

572.6


585.5

Contract assets, short-term

1,059.5


522.9

Inventory, net

2,020.7


1,767.3

Other current assets

63.4


52.5

Total current assets

3,933.8


3,751.8

Property, plant and equipment

1,986.2


2,084.2

Right of use assets

86.9


92.1

Contract assets, long-term

22.9


-

Pension assets

48.0


33.5

Restricted plan assets

48.2


61.1

Deferred income taxes

0.1


0.1

Goodwill

631.3


631.2

Intangible assets, net

184.8


196.2

Other assets

107.0


99.9

Total assets

$                 7,049.2


$               6,950.1

Liabilities




Accounts payable

$                 1,091.1


$               1,106.8

Accrued expenses

520.9


420.1

Profit sharing

53.8


15.7

Current portion of long-term debt

426.2


64.8

Operating lease liabilities, short-term

9.8


9.1

Advance payments, short-term

98.2


38.3

Contract liabilities, short-term

262.6


192.6

Forward loss provision, short-term

413.0


256.6

Deferred revenue and other deferred credits, short-term

69.7


49.6

Customer financing, short-term

442.0


-

Other current liabilities

45.0


44.7

Total current liabilities

3,432.3


2,198.3

Long-term debt

3,976.4


4,018.7

Operating lease liabilities, long-term

80.1


84.3

Advance payments, long-term

249.5


301.9

Pension/OPEB obligation

27.3


30.3

Contract liabilities, long-term

180.3


161.3

Forward loss provision, long-term

596.5


224.1

Deferred revenue and other deferred credits, long-term

58.6


76.7

Deferred grant income liability - non-current

28.1


25.8

Deferred income taxes

12.8


9.1

Customer financing, long-term

207.4


180.0

Other non-current liabilities

136.4


135.5

Stockholders' Equity




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

116,631,455 and 116,054,291 shares issued and outstanding, respectively

1.2


1.2

Additional paid-in capital

1,458.3


1,429.1

Accumulated other comprehensive loss

(51.1)


(89.6)

Retained earnings

(892.6)


616.3

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

(2,456.7)


(2,456.7)

Total stockholders' equity

(1,940.9)


(499.7)

Noncontrolling interest

4.4


3.8

Total equity

(1,936.5)


(495.9)

Total liabilities and equity

$                 7,049.2


$               6,950.1

 

Spirit AeroSystems Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)








For the Nine Months Ended



September 26, 2024


September 28, 2023

Operating activities


($ in millions)

Net loss


$               (1,508.3)


$                  (691.6)

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





Depreciation and amortization expense


232.9


236.9

Amortization of deferred financing fees


8.9


5.2

Accretion of customer supply agreement


1.8


1.8

Employee stock compensation expense


30.8


29.3

Gain from derivative instruments


(2.9)


(1.7)

Loss (gain) from foreign currency transactions


27.1


(4.0)

Loss on disposition of assets


1.3


0.9

Deferred taxes


6.9


(3.8)

Pension and other post-retirement plans (income) expense


(8.9)


61.8

Grant liability amortization


(0.9)


(0.9)

Equity in net (income) loss of affiliates


(0.2)


0.2

Forward loss provision


524.9


(50.7)

Gain on settlement of financial instrument


(1.2)


(1.4)

Asset impairment charges


0.2


-

Change in fair value of acquisition consideration and settlement


-


(2.4)

Gain on settlement of New Market Tax Credit incentive program


(5.7)


-

Changes in assets and liabilities





Accounts receivable, net


31.8


(127.0)

Inventory, net


(245.8)


(227.0)

Contract assets


(557.3)


(114.5)

Accounts payable and accrued liabilities


65.4


222.2

Profit sharing/deferred compensation


37.6


(22.5)

Advance payments


5.2


87.4

Income taxes receivable/payable


5.5


1.1

Contract liabilities


88.4


(3.9)

Pension plans employer contributions


(2.2)


178.0

Deferred revenue and other deferred credits


(0.7)


67.4

Other


7.9


19.7

Net cash used in operating activities


(1,257.5)


(339.5)

Investing activities





Purchase of property, plant and equipment


(106.8)


(76.5)

Other


0.1


-

Net cash used in investing activities


(106.7)


(76.5)

Financing activities





Proceeds from issuance of debt


359.2


12.7

Receipts from customer financing


509.4


180.0

Payments on customer financing


(40.0)


-

Borrowings under revolving credit facility


-


1.6

Principal payments of debt


(46.5)


(47.2)

Payments on term loans


(3.0)


(3.0)

Payment of acquistion consideration


-


(6.0)

Payment on financing of New Market Tax Credit incentive program


(1.9)


-

Taxes paid related to net share settlement awards


(5.4)


(6.1)

Proceeds from issuance of ESPP stock


3.8


2.6

Debt issuance and financing costs


(10.8)


(0.5)

Net cash provided by financing activities


764.8


134.1

Effect of exchange rate changes on cash and cash equivalents


0.3


-

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


(599.1)


(281.9)

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


845.9


678.4

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


$                   246.8


$                   396.5






Reconciliation of Cash, Cash Equivalents, and Restricted Cash:







For the Nine Months Ended



September 26, 2024


September 28, 2023

Cash and cash equivalents, beginning of the period


$                   823.5


$                   658.6

Restricted cash, short-term, beginning of the period


0.1


0.2

Restricted cash, long-term, beginning of the period


22.3


19.6

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


$                   845.9


$                   678.4






Cash and cash equivalents, end of the period


$                   217.6


$                   374.1

Restricted cash, short-term, end of the period


-


0.2

Restricted cash, long-term, end of the period


29.2


22.2

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


$                   246.8


$                   396.5

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



2024


2023


2024


2023



















GAAP Diluted Loss Per Share


($4.07)


($1.94)


($12.93)


($6.58)

         Deferred Tax Asset Valuation Allowance (a)


1.04


0.52


3.24


1.52

         Pension Termination Charges (b)


-


-


-


0.47










Adjusted Diluted Loss Per Share


($3.03)


($1.42)


($9.69)


($4.59)










Diluted Shares (in millions)


117.2


105.2


116.7


105.1











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

(b)  Represents the net non-cash charges related to the termination of the U.S. Pension Value Plan A (included in Other income)

 

Free Cash Flow



3rd Quarter


Nine Months

($ in millions)

2024


2023


2024


2023









Cash from Operations

($276)


($111)


($1,258)


($340)

Capital Expenditures

(47)


(25)


(107)


(77)

Free Cash Flow

($323)


($136)


($1,364)


($416)

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/spirit-aerosystems-reports-third-quarter-2024-results-302285228.html

SOURCE Spirit Aerosystems

FAQ

What were Spirit AeroSystems (SPR) Q3 2024 revenue and EPS?

Spirit AeroSystems reported Q3 2024 revenues of $1.5 billion and EPS of $(4.07), with adjusted EPS of $(3.03).

How many employees is Spirit AeroSystems (SPR) furloughing due to the Boeing strike?

Spirit AeroSystems is implementing a 21-day furlough for approximately 700 employees working on the 767 and 777 programs, effective October 28, 2024.

What is Spirit AeroSystems' (SPR) current backlog value?

Spirit AeroSystems' backlog at the end of Q3 2024 was approximately $48 billion, including work packages on all commercial platforms in the Airbus and Boeing backlog.

When is the Boeing acquisition of Spirit AeroSystems (SPR) expected to close?

The Boeing acquisition of Spirit AeroSystems is expected to close in mid-2025, subject to regulatory approvals and other closing conditions.

Spirit Aerosystems Holdings, Inc.

NYSE:SPR

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3.78B
115.66M
0.9%
94.09%
9.32%
Aerospace & Defense
Aircraft Parts & Auxiliary Equipment, Nec
Link
United States of America
WICHITA