Boeing Selects Spirit AeroSystems to Support B-52 Commercial Engine Replacement Program

Rhea-AI Summary

Spirit AeroSystems Holdings, Inc. (NYSE: SPR) has secured a contract with Boeing to supply engine pylons and nacelles for the B-52 Commercial Engine Replacement Program (CERP). This initiative aims to replace 608 engines in the U.S. Air Force's B-52H fleet and extend the aircraft's service life until at least 2050. Spirit, a leading supplier of engine pylons, will apply its extensive experience in producing engine structures to support the B-52, which first entered service in 1955.

Positive

• Contract with Boeing for B-52 CERP, enhancing long-term revenue prospects.
• Potentially extends operational life of B-52 aircraft until 2050.
• Spirit's established expertise in manufacturing engine pylons and nacelles.

Negative

• None.

WICHITA, Kan.--(BUSINESS WIRE)-- Spirit AeroSystems Holdings, Inc. [NYSE: SPR] today announced a contract award from The Boeing Company [NYSE: BA] to provide 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.

As part of the CERP contract, 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.

From the first flight in April 1952, Wichita played a major role in the manufacturing of the B-52. All B-52H models were built in Wichita. By the end of its original production run in 1962, over 700 of the planes had been built, the majority of them in Wichita. Wichita’s legacy with the U.S. bomber fleet dates back to B-29 Superfortress production during World War II.

“We are very pleased Boeing selected Spirit to be the structures partner on the B-52 CERP program, taking advantage of decades of experience and capabilities building engine struts and nacelles in Wichita,” said Duane Hawkins, Executive Vice President, President Defense & Space. “Spirit is proud of our heritage with the warfighter by producing legacy bombers and now extending that legacy keeping the B-52 flying for decades to come.”

Spirit is one of the world’s largest suppliers of engine pylons, delivering every pylon for Boeing’s commercial aircraft. Spirit currently builds the nacelle for the commercial variant of the Rolls Royce F-130 engine, selected by the Air Force for the B-52 CERP program.

“Spirit will apply its vast experience building and delivering thousands of engine struts and nacelles for commercial applications on the CERP program,” said Jarrod Bartlett, Defense & Space Business Development Manager. “We look forward to supporting Boeing to help keep the B-52 a ready and reliable weapon system for the Air Force.”

On the web: https://www.spiritaero.com/pages/article/extending-the-mission-of-the-b-52/

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/20220412005792/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 is the recent contract awarded to Spirit AeroSystems?

Spirit AeroSystems has been awarded a contract from Boeing to provide engine pylons and nacelles for the B-52 Commercial Engine Replacement Program.

How many engines will be replaced under the B-52 CERP?

The B-52 Commercial Engine Replacement Program aims to replace 608 engines in the U.S. Air Force's B-52H fleet.

What is the significance of the B-52's operational extension?

The contract will help extend the B-52's service life through at least 2050, ensuring ongoing relevance in the U.S. Air Force's fleet.

When did the B-52 first enter service?

The B-52 first entered the U.S. Air Force fleet in 1955.

What is Spirit AeroSystems' role in the B-52 CERP?

Spirit AeroSystems will act as the structures partner, leveraging its experience in building engine struts and nacelles for the program.