Group 1 - Spirit AeroSystems stock is rising as reports indicate progress in negotiations for a deal with Boeing [1][5] - Airbus is also in talks to acquire parts of Spirit AeroSystems, with both companies negotiating to split the company and acquire its assets [2] - The deal is expected to be announced within days or weeks, which would enhance supply chain stability for both Boeing and Airbus [5] Group 2 - As of Friday morning, SPR stock has increased by 5.7% [7] - Approximately 2 million shares of SPR stock have changed hands, nearing its daily average trading volume of 2.1 million shares [6]

A month has gone by since the last earnings report for Spirit Aerosystems (SPR) . Shares have added about 1.1% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Spirit Aerosystems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Spirit AeroSystems Q1 Loss Widens, ...

WICHITA, Kan., June 5, 2024 /PRNewswire/ -- Spirit AeroSystems Holdings, Inc. [NYSE: SPR] today announced that Mark Suchinski is stepping down as Senior Vice President and Chief Financial Officer. Irene Esteves, former Executive Vice President and Chief Financial Officer of Time Warner Cable and a member of Spirit's Board of Directors, has been appointed the new Chief Financial Officer effective immediately. Suchinski will remain with Spirit for a transition period to support the transition to Esteves in he ...

One clarification question and my main question. The 55 MAX units that you didn't ship in the quarter but produced, how many of those at this point have gone through this joint verification process and a That's my clarification question. And then my main question on Airbus and the negotiations there, Pat. Has there been any progress on the pricing side? Or did the pricing negotiations kind of get put to the side at this point, given it sounds like you're potentially negotiating with Airbus to take back the ...

```markdown [Financial Highlights](index=1&type=section&id=Financial%20Highlights) In Q1 2024, Spirit AeroSystems reported a 19% increase in revenue to **$1.7 billion**, but its operating loss widened significantly to $528 million from $95 million in Q1 2023. Net loss per share increased to $5.31 from $2.68. The company experienced a free cash flow usage of $444 million and confirmed it is engaged in acquisition discussions with Boeing Q1 2024 Summary Financial Results | | 1st Quarter | | | :--- | :--- | :--- | | **($ in millions, except per share data)** | **2024** | **2023** | | Net Revenues | $1,703 | $1,431 | | Operating Loss | ($528) | ($95) | | Net Loss | ($617) | ($281) | | Loss Per Share (Fully Diluted) | ($5.31) | ($2.68) | | Adjusted Loss Per Share (Fully Diluted)* | ($3.93) | ($1.69) | - Key performance indicators for Q1 2024 include revenues of **$1.7 billion**, EPS of **$(5.31)**, and free cash flow usage of **$444 million**[4](index=4&type=chunk) - The company is currently engaged in discussions with Boeing regarding a possible acquisition of Spirit AeroSystems[4](index=4&type=chunk) - Spirit has partnered with Boeing to align 737 fuselage product inspection more closely with where the work is performed, aiming to enhance quality and eliminate rework[3](index=3&type=chunk) [Operational and Financial Review](index=2&type=section&id=Operational%20and%20Financial%20Review) The company's financial performance was significantly impacted by operational challenges and forward losses. Revenue increased due to higher production activities, but this was overshadowed by a substantial increase in operating loss, driven by forward loss provisions on Airbus programs and issues related to Boeing production changes. Cash flow was severely strained, with a significant increase in cash used in operations due to production disruptions and inventory buildup [Boeing 737 Update](index=2&type=section&id=Boeing%20737%20Update) The current Boeing 737 production rate is approximately **31 aircraft per month** and is expected to remain at this level for the rest of 2024. Joint product verification processes with Boeing have caused delivery delays, leading to higher inventory levels and a negative impact on operational cash flows - The current Boeing 737 production rate is approximately **31 aircraft per month**, which is anticipated to continue through the end of 2024[6](index=6&type=chunk) - Joint product verification with Boeing, initiated March 1, 2024, has delayed deliveries and increased inventory and contract assets, negatively impacting cash flow[5](index=5&type=chunk) [Revenue and Backlog](index=2&type=section&id=Revenue%20and%20Backlog) Q1 2024 revenue increased to **$1.7 billion**, up from **$1.43 billion** in Q1 2023, primarily due to higher production on Commercial programs and increased Defense and Space revenues. This growth occurred despite a decrease in overall shipset deliveries. The company's backlog remains robust at approximately **$49 billion** - Revenue increased in Q1 2024 due to higher production on Commercial programs and higher Defense and Space revenues[7](index=7&type=chunk) - Overall deliveries decreased to **307 shipsets** in Q1 2024 from **346 in Q1 2023**[7](index=7&type=chunk) - The company's backlog at the end of Q1 2024 was approximately **$49 billion**[7](index=7&type=chunk) [Earnings and Forward Losses](index=2&type=section&id=Earnings%20and%20Forward%20Losses) The operating loss for Q1 2024 was significantly higher than the prior year, largely due to **$495.4 million** in net forward losses and **$39.2 million** in unfavorable cumulative catch-up adjustments. The forward losses were primarily driven by the Airbus A350 (**$280.8 million**) and A220 (**$167.0 million**) programs due to pricing negotiation challenges and cost growth - The Q1 2024 operating loss was higher than Q1 2023, driven by increased unfavorable changes in estimates, Boeing's schedule changes, and quality audits following the Alaska Airlines incident[8](index=8&type=chunk) Q1 2024 Charges vs. Q1 2023 | Charge Type | Q1 2024 ($ millions) | Q1 2023 ($ millions) | | :--- | :--- | :--- | | Net Forward Losses | $495.4M | $110.0M | | Unfavorable Cumulative Catch-up | $39.2M | $11.9M | | Excess Capacity Costs | $26.1M | $43.3M | - Major forward losses in Q1 2024 were on the Airbus A350 (**$280.8 million**) and A220 (**$167.0 million**) programs, and the Boeing 787 program (**$34.1 million**)[9](index=9&type=chunk) [Cash Flow and Liquidity](index=3&type=section&id=Cash%20Flow%20and%20Liquidity) The company experienced significant cash burn in Q1 2024, with cash used in operations at **$416 million** and free cash flow usage at **$444 million**. This was primarily due to Boeing 737 production disruptions and delivery delays. The cash balance decreased sharply to **$352 million** at the end of the quarter Cash Flow and Debt Summary | ($ in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Cash used in Operations | ($416) | ($46) | | Free Cash Flow* | ($444) | ($69) | | **($ in millions)** | **Mar 28, 2024** | **Dec 31, 2023** | | Cash | $352 | $824 | | Total Debt | $4,072 | $4,084 | - Cash flow was negatively impacted by Boeing 737 production disruptions, delivery delays, and the inability to conclude pricing negotiations with Airbus[11](index=11&type=chunk) [Business Outlook and Subsequent Events](index=3&type=section&id=Business%20Outlook%20and%20Subsequent%20Events) Spirit has suspended its 2024 financial guidance due to ongoing acquisition discussions with Boeing and commercial negotiations with Airbus. Subsequent to the quarter's end, Spirit entered an agreement with Boeing for **$425 million** in cash advances. Additionally, the company anticipates a further forward loss of approximately **$50 to $60 million** in Q2 2024 on the Boeing 787 program due to an expected slowdown in production - The company will not provide a 2024 financial outlook until there is more clarity on acquisition discussions with Boeing, 737 production timing, and negotiations with Airbus[13](index=13&type=chunk) - On April 18, 2024, Spirit entered into a Memorandum of Agreement with Boeing to receive **$425.0 million** in cash advances, expected in Q2 2024[14](index=14&type=chunk) - The company expects to incur an incremental forward loss of approximately **$50 to $60 million** in Q2 2024 on the Boeing 787 program due to an anticipated slower increase in production and deliveries[15](index=15&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) Segment performance was mixed in Q1 2024. The Commercial segment's revenue grew **18.1%**, but it incurred a massive operating loss of **$484.9 million** due to forward losses. The Defense & Space segment showed strong growth, with revenue up **33.1%** and operating margin expanding to **12.8%**. The Aftermarket segment had a slight revenue increase but saw its operating margin contract due to lower MRO activity Q1 2024 Segment Results | ($ in millions) | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Segment Revenues** | | | | | Commercial | $1,356.1 | $1,148.5 | 18.1 % | | Defense & Space | 250.8 | 188.4 | 33.1 % | | Aftermarket | 95.9 | 94.5 | 1.5 % | | **Segment (Loss) Earnings from Operations** | | | | | Commercial | ($484.9) | ($45.5) | ** | | Defense & Space | 32.2 | 19.2 | 67.7 % | | Aftermarket | 17.2 | 19.2 | (10.4 %) | [Commercial](index=4&type=section&id=Commercial) The Commercial segment's revenue increased to **$1.36 billion** due to higher production. However, its operating margin fell sharply to -35.8% from -4.0% in the prior year, resulting in a **$484.9 million** loss. This was primarily caused by **$493.8 million** in net forward losses and **$38.9 million** in unfavorable catch-up adjustments - Commercial revenue increased due to higher production across most programs[16](index=16&type=chunk) - Operating margin decreased significantly, driven by **$493.8 million** of net forward losses and **$38.9 million** of unfavorable cumulative catch-up adjustments[16](index=16&type=chunk) [Defense & Space](index=4&type=section&id=Defense%20%26%20Space) Defense & Space revenue grew by **33.1%** to **$250.8 million**, driven by increased activity on development, classified, Sikorsky CH-53K, and FLRAA programs. Operating margin improved from **10.2%** to **12.8%** year-over-year, attributed to higher activity on classified programs - Revenue increased due to higher activity on development, classified programs, the Sikorsky CH-53K, and FLRAA programs[17](index=17&type=chunk) - Operating margin increased to **12.8%** from **10.2%** in Q1 2023, primarily due to higher activities on classified programs[17](index=17&type=chunk)[19](index=19&type=chunk) [Aftermarket](index=6&type=section&id=Aftermarket) Aftermarket revenue increased slightly by **1.5%** to **$95.9 million**, supported by higher spare part sales which were partially offset by reduced maintenance, repair, and overhaul (MRO) activity. Operating margin decreased to **17.9%** from **20.3%** due to this lower MRO activity - Revenue increased slightly due to higher spare part sales, partially offset by decreased MRO activity[18](index=18&type=chunk) - Operating margin decreased to **17.9%** from **20.3%** in Q1 2023, primarily due to lower MRO activity[18](index=18&type=chunk)[19](index=19&type=chunk) [Shipset Deliveries](index=8&type=section&id=Spirit%20Shipset%20Deliveries) Total shipset deliveries in Q1 2024 decreased to **307** from **346** in Q1 2023. This decline was driven by a significant drop in Boeing 737 deliveries from 95 to 44. In contrast, total deliveries to Airbus increased from 176 to 191 shipsets Shipset Deliveries (one shipset equals one aircraft) | | 1st Quarter | | | :--- | :--- | :--- | | | **2024** | **2023** | | **Total Boeing** | **70** | **116** | | B737 | 44 | 95 | | **Total Airbus** | **191** | **176** | | A320 Family | 153 | 142 | | **Business/Regional Jet** | **46** | **54** | | **Total** | **307** | **346** | [Financial Statements](index=9&type=section&id=Financial%20Statements) This section contains the unaudited condensed consolidated financial statements for the three months ended March 28, 2024, including the Statement of Operations, Balance Sheet, and Statement of Cash Flows, which provide detailed financial data for the period [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Statement of Operations shows a net loss of **$616.6 million** for Q1 2024, a significant increase from the **$281.3 million** loss in Q1 2023. The loss was driven by a cost of sales (**$2.14 billion**) that substantially exceeded net revenues (**$1.70 billion**) [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Balance Sheet as of March 28, 2024, shows total assets of **$6.76 billion** and total liabilities of **$7.88 billion**, resulting in a total equity deficit of **$1.11 billion**. Cash and cash equivalents stood at **$352.0 million**, down from **$823.5 million** at the end of 2023 [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Statement of Cash Flows details a net cash usage in operating activities of **$415.6 million** for Q1 2024, a substantial increase from the **$46.2 million** used in the same period last year. The primary drivers of cash usage were the net loss and a significant increase in contract assets [Appendix: Non-GAAP Reconciliations](index=13&type=section&id=Appendix%3A%20Non-GAAP%20Reconciliations) This appendix provides reconciliations for non-GAAP financial measures to their most comparable GAAP figures. It clarifies the adjustments made to calculate Adjusted Diluted Earnings (Loss) Per Share (Adjusted EPS) and Free Cash Flow, which management believes offer additional insight into the company's performance Adjusted EPS Reconciliation | | 1st Quarter | | | :--- | :--- | :--- | | | **2024** | **2023** | | GAAP Diluted Loss Per Share | ($5.31) | ($2.68) | | Deferred Tax Asset Valuation Allowance | 1.38 | 0.50 | | Pension Termination Charges | — | 0.49 | | Adjusted Diluted Earnings (Loss) Per Share | ($3.93) | ($1.69) | Free Cash Flow Reconciliation | ($ in millions) | 1st Quarter | | | :--- | :--- | :--- | | | **2024** | **2023** | | Cash from Operations | ($416) | ($46) | | Capital Expenditures | (29) | (23) | | Free Cash Flow | ($444) | ($69) | ```

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33160 Spirit AeroSystems Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 20-2436320 ( ...

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $0.52 for Q4 2023, a significant improvement from a loss of $2.32 in Q4 2022. Adjusted EPS was $0.48 compared to a loss of $1.46 in the prior year [17] - Operating margin improved to 11% from a negative 11% in the same period of 2022, largely due to favorable impacts from the Boeing Memorandum of Agreement (MOA) [17] - Revenue for Q4 2023 was $1.8 billion, up 37% year-over-year, driven by higher production on commercial programs and increased revenues from Defense and Space and aftermarket segments [54] Business Line Data and Key Metrics Changes - The Defense and Space segment grew to $205 million, a 12% increase from Q4 2022, but the operating margin decreased to 2% from 11% due to unfavorable changes in estimates [20] - Commercial revenues increased by 43% year-over-year, with operating margin rising to 17% from negative 8% in the prior year, primarily driven by favorable changes in estimates [57] - Aftermarket revenue was $91 million, up 24% compared to Q4 2022, with a strong operating margin of 23% compared to 13% in the same period last year [59] Market Data and Key Metrics Changes - The company ended the year with $824 million in cash and $4.1 billion in debt, with no significant debt maturities until 2026 [23] - Full-year revenue for 2023 was $6 billion, a 20% increase year-over-year, driven by higher commercial production volumes and increased revenues from defense and space [22] Company Strategy and Development Direction - The company is focused on stabilizing operations and improving quality management systems, particularly in response to the January 5th accident [5][11] - There is an ongoing effort to integrate more with Boeing's quality management system and to enhance manufacturing processes through automation and advanced data analytics [30][32] - The company is engaged in productive negotiations with Airbus regarding the A350 and A220 programs, aiming to address long-term financials [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant pressures in 2023 due to production schedule volatility, supply chain constraints, and inflation, but expressed confidence in the team's ability to stabilize operations [15][36] - The company is not providing specific guidance for 2024 due to uncertainties surrounding production rates and ongoing negotiations with Boeing and Airbus [36] - Management emphasized the importance of quality and safety, stating that the company is mobilized for implementation of systemic improvements [11][126] Other Important Information - The company recorded forward losses primarily related to the A350 and A220 programs, with net incremental forward losses of approximately $30 million anticipated beyond 2025 [18] - The company has made significant investments to stabilize the 737 production line, achieving the highest quarterly total of fuselage deliveries in four years [34][111] Q&A Session Summary Question: What is the current production rate for the 737? - Management stated that the factory is cycling at 42 units per month but building at 38 units per month, indicating a stable production schedule [64] Question: What is the status of the forward loss reserves? - Management indicated that the forward loss reserves include both short-term and long-term items, with expectations of a forward loss through 2024 and possibly into early 2025 [65] Question: How is the company addressing quality issues? - Management highlighted a focus on product safety and quality management, with an emphasis on reducing manual processes and increasing inspections [125][126] Question: What are the expectations for free cash flow in 2024? - Management noted uncertainty around production rate increases and ongoing negotiations, making it difficult to provide specific guidance on free cash flow for 2024 [97]

Spirit AeroSystems Holdings, Inc. (NYSE:SPR) Q3 2023 Earnings Conference Call November 1, 2023 11:00 AM ET Ryan Avey - Senior Director, IR & FP&A Patrick Shanahan - President and CEO Mark Suchinski - SVP and CFO Seth Seifman - JPMorgan Sheila Kahyaoglu - Jefferies Douglas Harned - Bernstein David Strauss - Barclays George Shapiro - Shapiro Research Myles Walton - Wolfe Research Scott Deuschle - Deutsche Bank Noah Poponak - Goldman Sachs Robert Stallard - Vertical Research Scott Mikus - Melius Research Cai v ...

Tom Gentile President and Chief Executive Officer 3 ▪ Higher production on development programs and P-8 | --- | --- | --- | --- | |-------|-------|--------------------|-------| | | | | | | | | | | | | | SPIRIT | | | | | AEROSYSTEMS ® | | | | | | | | | | ►▶▶ spiritaero.com | | a Represents the deferred tax asset valuation allowance (included in Income tax provision) Cash and Debt Balances ▪ Lower deliveries of A220 15% Revenue Non-GAAP Measure Disclosure | --- | --- | --- | --- | --- | |--------------------- ...

The teams worked diligently throughout the quarter on the 737 vertical fin attached fitting rework related to the quality issue that we explained in April. We're pleased to have resolved the required rework on available units in Wichita within the $31 million cost estimate we discussed on the last earnings call. Ryan Avey On the IAM contract, we are very pleased to have in place a four-year contract with our IAM represented employees, which reflects the gratitude we have for their contributions. While the f ...