分组1 - Spirit Aerosystems reported a quarterly loss of $4.22 per share, significantly worse than the Zacks Consensus Estimate of a loss of $1.86, marking an earnings surprise of -126.88% [1] - The company posted revenues of $1.65 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.06%, and down from $1.81 billion a year ago [2] - The stock has added about 1.1% since the beginning of the year, outperforming the S&P 500, which declined by -0.3% [3] 分组2 - The earnings outlook for Spirit Aerosystems is currently unfavorable, leading to a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the coming quarter is -$0.39 on revenues of $1.69 billion, and -$0.25 on revenues of $7.53 billion for the current fiscal year [7] - The Aerospace - Defense Equipment industry is currently in the top 32% of Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Revenue Performance - Net revenue in the Commercial segment was $4,927.4 million in 2024, up from $4,885.0 million in 2023 and $4,068.4 million in 2022, representing a growth of 0.9% year-over-year[24]. - The Defense & Space segment reported net revenue of $975.2 million in 2024, an increase from $789.0 million in 2023 and $649.8 million in 2022, reflecting a growth of 23.6% year-over-year[25]. - The Aftermarket segment achieved net revenue of $414.0 million in 2024, compared to $373.9 million in 2023 and $311.4 million in 2022, marking a growth of 10.5% year-over-year[26]. - International sales amounted to $1,505.6 million in 2024, up from $1,380.8 million in 2023 and $1,215.1 million in 2022, indicating a growth of 9.0% year-over-year[46]. - For the twelve months ended December 31, 2024, net revenues were $6,316.6 million, an increase from $6,047.9 million in 2023, representing a growth of approximately 4.4%[526]. Financial Losses - The operating loss for 2024 was $1,786.1 million, compared to a loss of $134.2 million in 2023, indicating a significant decline in profitability[526]. - The company reported a net loss of $2,139.0 million for 2024, compared to a net loss of $616.1 million in 2023, reflecting a deterioration in financial performance[526]. - The company had a net loss attributable to common shareholders of $2,139.8 million in 2024, compared to $616.2 million in 2023, highlighting a worsening financial situation[526]. - The company experienced a forward loss provision of $793.0 million in 2024, a significant increase from a gain of $194.9 million in 2023[535]. - The company reported a net loss of $2,139.0 million for the twelve months ended December 31, 2024, compared to a net loss of $616.1 million in 2023 and $546.2 million in 2022[535]. Debt and Liabilities - As of December 31, 2024, the company had $580.6 million of variable rate term loan debt outstanding, which is subject to interest rate fluctuations[507]. - Total current liabilities increased from $2,198.3 million to $3,567.4 million, an increase of approximately 62.4%[530]. - Total debt as of December 31, 2024, was approximately $4,394.2 million, with more than 50% classified as secured debt[542]. - The company incurred interest expenses of $329.5 million in 2024, up from $285.3 million in 2023[536]. - The company has customer financing liabilities totaling $904.0 million as of December 31, 2024[542]. Inventory and Cash Flow - Inventory increased from $1,767.3 million to $1,891.7 million, reflecting a rise of approximately 7.0%[530]. - Net cash used in operating activities was $1,120.9 million for the year, significantly higher than $225.8 million in 2023 and $394.6 million in 2022[535]. - The company had a cash balance of $537.0 million at the end of the period, down from $845.9 million at the end of 2023[536]. - Cash and cash equivalents dropped significantly from $823.5 million to $537.0 million, representing a decrease of about 34.8%[530]. Contracts and Agreements - Approximately 66% of Commercial segment net revenues in 2024 came from contracts with Boeing, while 27% came from contracts with Airbus[27]. - The company has been awarded significant contracts for military programs, including the Boeing P-8 and KC-46 Tanker, and continues to pursue classified military contracts[37]. - The company entered into a definitive agreement to sell its Fiber Materials, Inc. business for $165.0 million, with the transaction closing on January 13, 2025[24]. - The 2023 Memorandum of Agreement established recurring shipset price reductions on the B737 program effective from 2026 through June 2033[54]. - The company generates substantial revenue from long-term supply agreements with major aerospace manufacturers, including Boeing and Airbus[580]. Employee and Operational Metrics - As of December 31, 2024, approximately 20,370 employees were employed, with 58% of net revenues derived from sales to Boeing[88][501]. - The management and salaried retention rate was 88% in 2024, indicating strong employee retention efforts[92]. - Approximately 59% of U.S. employees are represented by unions, with major agreements expiring between 2025 and 2028[94]. - The company maintains long-standing relationships with hundreds of manufacturing suppliers to secure the best value for its operations[77]. - The company has established specialized programs to support the development of its talent pipeline for critical roles[92]. Regulatory and Compliance Issues - The company is subject to various environmental regulations, which may require significant expenditures for compliance in the future[1]. - The company has stated that substantial doubt exists about its ability to continue as a going concern due to recurring losses from operations[518]. - The merger agreement requires a majority approval from Holdings stockholders and various regulatory approvals, including compliance with the HSR Act[548]. - The company received a second request for additional information from the Federal Trade Commission, extending the waiting period under the HSR Act[552]. Research and Development - Research and development spending for the year ended December 31, 2024, was $47.5 million, compared to $45.4 million in 2023 and $50.4 million in 2022[79]. - Research and development costs are expensed as incurred, focusing on experimentation, design, and testing[593]. Financial Instruments and Taxation - The Company uses derivative financial instruments, primarily interest rate swaps and foreign currency forward contracts, to manage economic impacts from currency and interest rate fluctuations[607]. - The Company recognizes income tax provision based on net income or loss in each tax jurisdiction, with uncertainties accounted for according to FASB guidance[613]. - The Company has established a valuation allowance against nearly all of its net U.S. and U.K. deferred tax assets due to cumulative loss positions[611].

Financial Performance - Net revenues for Q4 2024 were $1,662 million, a decrease of 8.3% from $1,813 million in Q4 2023[4] - Cost of sales increased to $2,075 million in Q4 2024 from $1,522 million in Q4 2023, resulting in a gross loss of $413 million[4][6] - Free cash flow improved to $91 million in Q4 2024, compared to $42 million in Q4 2023, driven by higher Boeing 737 deliveries[6][10] - Total debt rose to $4,394 million as of December 31, 2024, up from $4,084 million a year earlier[4] - Cash position decreased to $537 million at the end of Q4 2024, down from $824 million at the end of Q4 2023[4] Deliveries and Production - Deliveries of Boeing 737 increased to 133 in Q4 2024 from 104 in Q4 2023, while total Boeing deliveries were 160, up from 133[7] - Airbus A320 Family deliveries increased to 181 in Q4 2024 from 150 in Q4 2023, contributing to a total of 231 Airbus deliveries[7] Risks and Challenges - The company faces risks related to preliminary financial results for the three and twelve months ended December 31, 2024[18] - The global aerospace supply chain remains fragile, with increased costs for raw materials and components due to inflationary pressures[18] - The company relies significantly on Boeing and Airbus for revenue, which may impact financial performance[20] - The proposed acquisition of Spirit by Boeing is subject to regulatory approvals and may affect the market price of Spirit common stock[20] - The company must navigate potential labor disputes and negotiate new agreements with unions representing employees[18] - Economic conditions, including rising interest rates and inflation, could impact demand for products and services[18] - There are uncertainties regarding the timing and conditions for the return to service of the B737 MAX, which may affect production rates[18] Strategic Focus - The company is focused on maintaining production continuity at manufacturing facilities amid supply chain challenges[18] - The company is working to grow and diversify its business while managing performance and cost under contracts[18] Costs and Charges - Net forward loss charges of $401 million were recognized in Q4 2024, primarily driven by the Boeing 787 program[6] - Excess capacity costs for Q4 2024 were $54 million, compared to $31 million in Q4 2023[6] - The potential for significant transaction costs and integration challenges related to the acquisition of Spirit by Boeing[20] Cash Flow and Payments - The company received advance payments of $200 million from Boeing and $70 million from Airbus during Q4 2024[6]

Core Viewpoint - Spirit AeroSystems reported a challenging fourth quarter for 2024, with significant operating losses and a decrease in revenue compared to the previous year, primarily due to the impacts of the Boeing Memorandum of Agreement and production challenges. The company is preparing for its anticipated acquisition by Boeing in mid-2025, focusing on operational improvements and transition plans to ensure long-term success. Financial Performance - Spirit's revenue for the fourth quarter of 2024 was $1.65 billion, a decrease of 9% from $1.81 billion in the same period of 2023 [27] - The operating loss for the fourth quarter of 2024 was $577 million, compared to an operating income of $215 million in the fourth quarter of 2023 [27] - The net loss for the fourth quarter of 2024 was $631 million, translating to a loss per share of $(5.38), compared to a profit of $75 million and earnings per share of $0.66 in the same period of 2023 [27][7] Operational Highlights - Deliveries increased significantly in the fourth quarter, with Boeing 737 deliveries up 133% compared to the previous quarter, A220 deliveries up 37%, and A350 deliveries up 15% [2] - Spirit's backlog at the end of the fourth quarter of 2024 was approximately $47 billion, encompassing work packages on all commercial platforms in the Airbus and Boeing backlog [4] Cash Flow and Liquidity - Cash provided by operations improved to $137 million in the fourth quarter of 2024, up from $113 million in the same period of 2023 [28] - Free cash flow for the fourth quarter of 2024 was $91 million, compared to a negative cash flow of $1.27 billion in the previous year [28] - The company received advance payments from Boeing of up to $350 million and from Airbus of $107 million, with $200 million and $70 million received by the end of the fourth quarter, respectively [9] Segment Performance - The Commercial segment revenue decreased by 16.6% in the fourth quarter of 2024, primarily due to the Boeing MOA impacts, with an operating loss of $468.3 million [30] - The Defense & Space segment revenue increased by 30.9% year-over-year, driven by higher activity on specific programs, although it recorded net forward losses of $30 million [20] - The Aftermarket segment revenue increased by 29.8% compared to the previous year, primarily due to higher spare part sales, but the operating margin decreased due to sales mix [22] Acquisition and Future Outlook - The anticipated acquisition by Boeing is expected to close in mid-2025, subject to regulatory approvals and other conditions [13] - Management is focused on improving liquidity and operational efficiency, with plans dependent on various factors including customer advance repayments and production forecasts [11]

Core Viewpoint - Spirit AeroSystems' shareholders have approved the acquisition by The Boeing Company, marking a significant milestone in the merger process, which is expected to close in mid-2025, pending regulatory approvals [1][2]. Company Overview - Spirit AeroSystems is a leading manufacturer of aerostructures for commercial airplanes, defense platforms, and business/regional jets, specializing in aluminum and advanced composite manufacturing [3]. - The company's core products include fuselages, integrated wings, wing components, pylons, and nacelles, with a focus on innovation and reliability in military aerostructures [3]. - Spirit AeroSystems operates facilities in the U.S., U.K., France, Malaysia, and Morocco, highlighting its global presence in the aerospace industry [3].

Core Viewpoint - Spirit AeroSystems Holdings, Inc. has announced the sale of its Fiber Materials Inc (FMI) business to Tex Tech Industries, Inc. for $165 million in cash, which is seen as beneficial for both companies and their customers [1][3]. Company Overview - Spirit AeroSystems is a leading manufacturer of aerostructures for commercial airplanes, defense platforms, and business/regional jets, with expertise in aluminum and advanced composite manufacturing [5]. - The company is headquartered in Wichita, Kansas, and operates facilities in the U.S., U.K., France, Malaysia, and Morocco [5]. Fiber Materials Inc (FMI) Details - FMI specializes in high-temperature materials and reinforced composites, focusing on Carbon/Carbon and related composites, with applications in defense and NASA programs [2][7]. - The company employs approximately 400 engineers and production personnel and has been a solutions provider for over 50 years [2][7]. Tex Tech Industries, Inc. Overview - Tex Tech Industries is a global supplier of materials science-based solutions, servicing key markets such as aerospace, defense, medical, and industrial [6]. - The acquisition of FMI is considered strategic for Tex-Tech, enhancing its portfolio of thermally protective materials to meet the growing demands of the space and defense industry [4].

Core Viewpoint - Spirit AeroSystems reported a significant widening of losses in Q3 2024, with adjusted losses of $3.03 per share, far exceeding the consensus estimate of a loss of $0.16 per share, and a notable increase from the previous year's loss of $1.42 per share [2][3] Financial Performance - Total revenues for Q3 2024 were $1.47 billion, missing the Zacks Consensus Estimate of $1.83 billion by 19.6%, but showing a year-over-year increase of 2.2% driven by higher production activities in commercial programs and increased Defense and Space revenues [4] - The operating loss for the third quarter was $350.1 million, compared to a loss of $133.7 million in the prior-year quarter, primarily due to unfavorable changes in estimates [9] Segment Performance - **Commercial Segment**: Revenues increased by 0.3% year over year to $1.14 billion, but the operating loss widened to $299.4 million from $82.1 million in the previous year due to higher changes in estimates [5] - **Defense & Space Segment**: Revenues rose by 12.4% year over year to $231.3 million, with operating income increasing by 357.1% to $44.8 million, driven by activities in the Sikorsky CH-53K program and non-recurring revenues from the FLRAA program [6][7] - **Aftermarket Segment**: Revenues improved by 2.8% year over year to $99.5 million, but operating profit decreased by 51.4% to $8.7 million due to a less favorable sales mix [7][8] Operational Highlights - Total operating costs and expenses increased by 15.8% year over year to $1.82 billion, influenced by higher costs of sales and increased selling, general, and administrative expenses [9] Financial Position - As of September 26, 2024, Spirit AeroSystems had cash and cash equivalents of $217.6 million, down from $823.5 million at the end of 2023 [11] - Long-term debt decreased slightly to $3.98 billion from $4.02 billion as of December 31, 2023, while cash outflow from operating activities rose significantly to $1.26 billion from $0.34 billion year-over-year [12] Market Sentiment - There has been a downward trend in earnings estimates, with a significant shift of -389.5% in consensus estimates over the past month, indicating a negative outlook for the stock [13][14] - Spirit Aerosystems currently holds a Zacks Rank of 5 (Strong Sell), suggesting expectations of below-average returns in the coming months [16]

Core Points - Spirit AeroSystems has entered into a Second Amended and Restated Memorandum of Agreement with Airbus, which includes a non-interest-bearing line of credit of $107 million to support production for various Airbus programs [1][2] Group 1: Agreement Details - The line of credit will be utilized by Spirit as advance payments for production related to Airbus programs and the delivery of products to Airbus [1] - Repayment obligations for the amounts drawn under the line of credit will be assumed by Airbus or its affiliates upon the closing of related transactions, or repaid by April 1, 2026, if earlier [2] Group 2: Financial Implications - The $107 million line of credit is expected to enhance Spirit's liquidity and support its operational needs in the aerospace sector [1][2]

Strategic Reserve Replenishment - The U.S. government plans to purchase up to 3 million barrels of oil for the Strategic Petroleum Reserve (SPR) with delivery through May 2024, introducing fresh buying interest in the market [1] - This move is viewed as a stabilizing factor following a recent decline, although limited SPR funds necessitate Congressional approval for further purchases [1] - Traders perceive the SPR news as a modest buffer against downside risks, despite prevailing bearish sentiment due to global demand concerns [1] Geopolitical Tensions - Traders are monitoring developments in the Middle East, particularly following Israel's strike on Iran, which did not target Tehran's oil infrastructure [2] - U.S. officials have warned Iran of severe consequences for further escalations, while Iran has indicated it will respond using "all available tools" [2] - Any escalation affecting Iranian oil facilities could lead to price spikes due to supply disruptions, which traders are factoring into short-term risk assessments [2] Demand Concerns - The outlook for oil demand remains subdued due to China's slower-than-expected economic recovery, weak winter kerosene demand, and potentially higher U.S. crude and gasoline inventories [3] - A Reuters poll suggests that U.S. crude and gasoline stockpiles likely increased last week, with upcoming inventory reports expected to confirm weaker demand [3] - The American Petroleum Institute (API) and the Energy Information Administration (EIA) are set to release inventory data that could add pressure to prices if inventory levels rise [3] Political Influences - With the U.S. elections approaching, oil traders are preparing for potential volatility linked to political outcomes [4] - A Trump victory could lead to a short-term rally due to his pro-oil industry stance, but analysts believe any positive reaction would be temporary [4] - The demand outlook is expected to remain the dominant influence on the market, potentially countering any short-term gains [4] Market Forecast - Despite a slight rebound due to the SPR announcement, the broader market trend is bearish [5] - Softening demand forecasts and ongoing geopolitical risks are likely to limit significant price gains [5] - Crude oil prices are expected to remain under pressure, with potential re-testing of recent lows near $65.75, and traders should monitor inventory data and geopolitical events for directional cues [5]

Core Insights - Spirit Aerosystems reported revenue of $1.47 billion for the quarter ended September 2024, reflecting a 2.2% increase year-over-year, but a significant miss of 19.55% against the Zacks Consensus Estimate of $1.83 billion [1] - The company reported an EPS of -$3.03, a decline from -$1.42 in the same quarter last year, with an EPS surprise of -1793.75% compared to the consensus estimate of -$0.16 [1] Revenue Performance - Commercial segment revenues were $1.14 billion, below the estimated $1.46 billion, with a year-over-year change of +0.3% [2] - Aftermarket segment revenues reached $99.50 million, missing the estimate of $107.92 million, showing a +2.8% change from the previous year [2] - Defense & Space segment revenues totaled $231.30 million, also below the estimated $243.77 million, but reflecting a +12.5% increase year-over-year [2] Earnings Performance - Commercial segment reported an operating loss of -$299.40 million, significantly worse than the estimated profit of $81.52 million [2] - Aftermarket segment earnings were $8.70 million, falling short of the estimated $22.91 million [2] - Defense & Space segment earnings were $44.80 million, exceeding the estimated $28.92 million [2] Stock Performance - Spirit Aerosystems' shares have declined by -1.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.7% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]