Spirit AeroSystems(US:SPR)2025-02-28 21:36Revenue 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].