Spirit AeroSystems(SPR) - 2024 Q4 - Annual Results

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]