Spirit AeroSystems Reports Third Quarter 2024 Results

Core Viewpoint - Spirit AeroSystems reported a challenging third quarter in 2024, with significant operating losses and cash flow usage, while preparing for its acquisition by Boeing expected in mid-2025 [1][6]. Financial Performance - Revenues for Q3 2024 were $1.5 billion, a 2% increase from Q3 2023 [3][11]. - The operating loss for Q3 2024 was $350 million, compared to a loss of $134 million in Q3 2023 [4][11]. - Net loss for Q3 2024 was $477 million, or $(4.07) per share, compared to a net loss of $204 million, or $(1.94) per share in Q3 2023 [4][11][17]. - Adjusted EPS for Q3 2024 was $(3.03), compared to $(1.42) in Q3 2023 [4][11]. Cash Flow and Liquidity - Cash used in operations was $276 million in Q3 2024, up from $111 million in Q3 2023 [5][11]. - Free cash flow usage was $323 million in Q3 2024, compared to $136 million in Q3 2023 [5][11]. - The company had a cash balance of $218 million at the end of Q3 2024, down from $824 million at the end of Q3 2023 [5][14]. Operational Challenges - The ongoing Boeing IAM strike has led to employee furloughs and cost-saving measures, including a hiring freeze and travel restrictions [2][11]. - A 21-day furlough for approximately 700 employees will begin on October 28, 2024, affecting the 767 and 777 programs [2][11]. Segment Performance - Commercial segment revenue increased slightly due to higher production across most programs, despite lower production on the Boeing 737 program [7][11]. - Defense & Space segment revenue increased, driven by higher activity on the Sikorsky CH-53K program [8][11]. - Aftermarket segment revenue saw a slight increase due to higher spare part sales, but operating margin decreased due to sales mix [9][11]. Backlog and Future Outlook - The backlog at the end of Q3 2024 was approximately $48 billion, including work packages on all commercial platforms in the Airbus and Boeing backlog [3][11]. - The company is focused on improving liquidity and operational efficiency in light of the upcoming merger with Boeing [5][6].