Boeing Selects Spirit AeroSystems to Replace KC-135 Horizontal Stabilizers

Rhea-AI Summary

Spirit AeroSystems Holdings (NYSE: SPR) has secured a contract from Boeing to supply 34 horizontal stabilizer kits for the U.S. Air Force's KC-135R Stratotankers, aimed at extending their operational life until at least 2040. The production will take place at Spirit's Tulsa, Oklahoma facility. This initiative aligns with Spirit's strategy to diversify its business, targeting a 40% revenue share from Defense and Space sectors. Additionally, Spirit is involved in the B-52 Commercial Engine Replacement Program, which is set to replace 608 engines by 2050.

Positive

• Secured a contract from Boeing for 34 horizontal stabilizer kits, enhancing revenue.
• Plans to diversify business with Defense and Space sector targeting 40% revenue share.
• Supports the operational life extension of KC-135R Stratotankers through 2040.

Negative

• None.

WICHITA, Kan.--(BUSINESS WIRE)-- Spirit AeroSystems Holdings, Inc. (NYSE: SPR) today announced a contract award from The Boeing Company to provide new horizontal stabilizers for U.S. Air Force KC-135R Stratotankers. The contract is for an initial 34 horizontal stabilizer kits.

Spirit will support extending the life of the KC-135R through at least 2040 utilizing its advanced assembly capabilities including determinant assembly. The KC-135 series of aircraft first entered the U.S. Air Force fleet in 1957.

The new horizontal stabilizers will be produced at the Spirit facility in Tulsa, Okla.

“We are very pleased Boeing selected Spirit to produce horizontal stabilizers for the KC-135 Stratotanker, taking advantage of our decades of experience building aerostructures,” said Eric Hein, Spirit Vice President for Advanced Development and Space Programs. “Extending the life of the KC-135 to support the aerial refueling needs of the Air Force is a perfect use of Spirit’s capabilities and capacity. Our Tulsa team is proud to play a critical role to keep the Stratotankers flying for decades to come.”

The KC-135 continues to provide the core aerial refueling capability for the United States Air Force, as well as providing aerial refueling for the Navy, Marine Corps and allied nation aircraft. The KC-135 helps give the nation’s military global reach.

“Spirit AeroSystems is committed to growing in Defense and Space and supporting the needs of the warfighter; the KC-135 Horizontal Stabilizer replacement program aligns with that commitment,” said Jarrod Bartlett, Spirit Director of Business Development for Defense and Space. “We are on a path to diversify Spirit’s business and grow our defense related portfolio to 40% of the business as quickly as possible.”

Spirit is also helping Boeing extend the life of the B-52 Stratofortress by providing engine pylons and nacelles for the initial phase of the B-52 Commercial Engine Replacement Program (CERP). The total CERP effort is expected to replace 608 engines on the U.S. Air Force fleet of B-52H models. Spirit will support extending the life of the B-52 Stratofortress through at least 2050. The B-52 first entered the U.S. Air Force fleet in 1955.

On the web: www.spiritaero.com
On Twitter: @SpiritAero

About Spirit AeroSystems Inc.
Spirit AeroSystems is one of the world’s largest manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. With expertise in aluminum and advanced composite manufacturing solutions, the company’s core products include fuselages, integrated wings and wing components, pylons, and nacelles. Also, Spirit serves the aftermarket for commercial and business/regional jets. Headquartered in Wichita, Kansas, Spirit has facilities in the U.S., U.K., France, Malaysia and Morocco. More information is available at www.spiritaero.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" that may involve many risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "aim," "anticipate," "believe," "could," "continue," "estimate," "expect," "goal," "forecast," "intend," "may," "might," "objective," "outlook," "plan," "predict," "project," "should," "target," "will," "would," and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook include, without limitation, the impact of the COVID-19 pandemic on our business and operations; the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft; our reliance on Boeing for a significant portion of our revenues; our ability to execute our growth strategy, including our ability to complete and integrate acquisitions; our ability to accurately estimate and manage performance, cost, and revenue under our contracts; demand for our products and services and the effect of economic or geopolitical conditions in the industries and markets in which we operate in the U.S. and globally; our ability to manage our liquidity, borrow additional funds or refinance debt; and other factors disclosed in our filings with the Securities and Exchange Commission. These factors are not exhaustive and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220919005188/en/

Investor Relations:

Aaron Hunt or Ryan Avey

(316) 523-7040

investorrelations@spiritaero.com



Media:

Forrest Gossett

(316) 803-2975

forrest.s.gossett@spiritaero.com

Source: Spirit AeroSystems Holdings, Inc.

FAQ

What new contract did Spirit AeroSystems announce with Boeing regarding the KC-135R?

Spirit AeroSystems announced a contract with Boeing to supply 34 horizontal stabilizer kits for the KC-135R Stratotankers.

What is the significance of the KC-135R Stratotanker contract for Spirit AeroSystems?

The contract is significant as it supports Spirit’s strategy to diversify into Defense and Space sectors, aiming for 40% revenue from these areas.

Where will the new horizontal stabilizers for the KC-135R be produced?

The new horizontal stabilizers will be produced at Spirit's facility in Tulsa, Oklahoma.

How long is the operational life of the KC-135R being extended?

The operational life of the KC-135R Stratotankers is being extended to at least 2040.

What other defense program is Spirit AeroSystems involved in?

Spirit AeroSystems is also involved in the B-52 Commercial Engine Replacement Program, which aims to replace 608 engines by 2050.