Spirit AeroSystems(US:SPR)2025-05-01 20:27Revenue Performance - Revenue for Q1 2025 was $1.5 billion, a decrease from the same period in 2024, primarily due to lower production activity on Boeing programs, especially the Boeing 737[5]. - Net revenues for Q1 2025 were $1,522 million, a decrease of 11% compared to $1,703 million in Q1 2024[27]. - Total segment revenues decreased by 10.6% to $1,521.8 million in Q1 2025 from $1,702.8 million in Q1 2024[27]. - Commercial segment revenues fell by 14.3% to $1,161.6 million in Q1 2025, while Defense & Space segment revenues increased by 4.1% to $261 million[27]. Financial Losses and Improvements - Operating loss in Q1 2025 improved compared to Q1 2024, with a gain of $80 million from the sale of Fiber Materials, Inc., partially offset by a warranty reserve of $116 million[4]. - Operating loss for Q1 2025 was $487 million, an improvement of 8% from a loss of $528 million in Q1 2024[27]. - Net loss for Q1 2025 was $613 million, slightly improved by 1% from a loss of $617 million in Q1 2024[27]. - Adjusted diluted loss per share improved to ($4.25) in Q1 2025 from ($3.93) in Q1 2024[42]. Cash Flow and Operations - Cash used in operations was $420 million, with free cash flow usage of $474 million during Q1 2025[5]. - The company reported a free cash flow of ($474) million in Q1 2025, a 7% decline from ($444) million in Q1 2024[27]. - The company reported a net cash used in operating activities of $419.5 million for Q1 2025, compared to $415.6 million for Q1 2024[35]. Backlog and Deliveries - Spirit's backlog at the end of Q1 2025 was approximately $48 billion, encompassing work packages on all commercial platforms in the Airbus and Boeing backlog[3]. - Spirit delivered a total of 429 shipsets in Q1 2025, a significant increase from 307 shipsets in Q1 2024[29]. Debt and Assets - Total debt as of April 3, 2025, was $4,363 million, a slight decrease from $4,394 million as of December 31, 2024[27]. - Total assets decreased from $6,762.8 million at December 31, 2024, to $6,477.5 million at April 3, 2025, a decline of approximately 4.22%[33]. - Total stockholders' equity (deficit) worsened from ($2,616.0 million) at December 31, 2024, to ($3,193.4 million) at April 3, 2025[33]. Inventory and Liabilities - Inventory increased from $1,891.7 million at December 31, 2024, to $2,019.8 million at April 3, 2025, an increase of approximately 6.8%[33]. - Total current liabilities decreased from $3,567.4 million at December 31, 2024, to $3,392.6 million at April 3, 2025, a reduction of approximately 4.9%[33]. - Accounts receivable increased from $395.3 million at December 31, 2024, to $527.6 million at April 3, 2025, an increase of approximately 33.4%[33]. Strategic Agreements and Future Guidance - Spirit entered into a definitive agreement with Airbus to transfer certain assets for $439 million, expected to close in Q3 2025[14]. - The merger agreement with Boeing is expected to close in Q3 2025, subject to regulatory approvals and other conditions[13]. - Due to the merger agreement, Spirit will not provide financial guidance for 2025[20]. Challenges - The company is facing challenges related to the global aerospace supply chain and inflationary pressures impacting raw material costs[24]. - Total change in estimates included net forward losses of $293 million, primarily driven by the Airbus A350, A220, and Boeing 787 programs[7]. - The Commercial segment revenue decreased in Q1 2025, with net forward losses of $263 million and excess capacity costs of $41 million[16]. - The Defense & Space segment revenue increased in Q1 2025, driven by higher activity on the Boeing P-8 and Sikorsky CH-53K, despite net forward losses of $30 million[17].