Spirit AeroSystems(US:SPR)2025-10-31 20:27Financial Performance - Spirit AeroSystems reported third quarter 2025 revenue of $1.6 billion, an increase from the same period in 2024, driven by higher production activity on Boeing, Airbus, and Defense & Space programs [2]. - Net revenues for Q3 2025 were $1,585 million, an increase of 8% compared to $1,471 million in Q3 2024 [24]. - Total segment revenues for Q3 2025 were $1,585 million, up 7.8% from $1,471 million in Q3 2024 [26]. - The Defense & Space segment saw a revenue increase of 31.5% to $304 million in Q3 2025 compared to $231 million in Q3 2024 [26]. - The Commercial segment reported an increase in revenue, but operating margin decreased due to higher changes in estimate charges, with net forward losses of $578 million [15]. Operating Loss and Net Loss - The company's operating loss for the third quarter of 2025 was $(6.16) per share, compared to $(4.07) in the same period of 2024; adjusted EPS was $(4.87) compared to $(3.03) in the prior year [7]. - Operating loss for Q3 2025 was $647 million, representing an 85% increase from a loss of $350 million in Q3 2024 [24]. - Net loss for Q3 2025 was $724 million, a 52% increase from a loss of $477 million in Q3 2024 [24]. - Adjusted diluted loss per share for the nine months ended October 2, 2025, was ($12.47), compared to ($9.69) for the same period in 2024, reflecting a worsening of 28.9% [43]. Cash Flow and Operations - Cash used in operations during the third quarter of 2025 was $187 million, with free cash flow usage of $230 million [5]. - Cash used in operations decreased by 32% to $187 million in Q3 2025 from $276 million in Q3 2024 [25]. - Free cash flow improved by 29% to a negative $230 million in Q3 2025 from a negative $323 million in Q3 2024 [25]. - The company reported a net cash used in operating activities of ($750.4) million for the nine months ended October 2, 2025, an improvement from ($1,257.5) million in the prior year [36]. Backlog and Production - Spirit's backlog at the end of the third quarter of 2025 was approximately $52 billion, encompassing work packages on all commercial platforms in the Airbus and Boeing backlog [3]. - Spirit delivered a total of 392 shipsets in Q3 2025, an increase from 332 shipsets in Q3 2024 [29]. Debt and Assets - Total debt as of October 2, 2025, was $4,339 million, a slight decrease from $4,394 million at the end of 2024 [25]. - Total assets decreased to $6,104.9 million from $6,762.8 million, a decline of approximately 9.7% year-over-year [34]. - Total current liabilities increased significantly to $5,460.2 million from $3,567.4 million, an increase of approximately 53.0% [34]. - Total stockholders' equity (deficit) decreased to ($4,518.1) million from ($2,616.0) million, indicating a worsening of 72.8% year-over-year [34]. Legal and Regulatory - The European Commission approved the proposed acquisition of Spirit by Boeing, contingent upon divestitures to address competition concerns [13]. - The company reversed $48 million of accrued liabilities related to a favorable litigation resolution in the third quarter of 2025 [6]. Management and Future Outlook - Management has developed a liquidity improvement plan, but there is substantial doubt about the company's ability to continue as a going concern [10][11]. - Total changes in estimates for the third quarter of 2025 included net forward losses of $585 million, primarily driven by the Boeing 737, Boeing 787, Airbus A220, and Airbus A350 programs [5]. - Inventory decreased to $1,213.9 million from $1,891.7 million, a reduction of about 35.7% year-over-year [34]. - Proceeds from customer financing for the nine months ended October 2, 2025, were $580.3 million, compared to $509.4 million in the same period in 2024, an increase of 13.9% [36].