Spirit AeroSystems Reports Fourth Quarter 2024 Results
Spirit AeroSystems (NYSE: SPR) reported Q4 2024 financial results with revenues of $1.7 billion and EPS of $(5.38). The company reported cash provided by operations of $137 million and free cash flow of $91 million.
Key operational highlights include increased deliveries across programs: twofold increase for 737, 37% for A220, and 15% for A350 compared to previous quarter. However, the quarter saw significant challenges with net forward losses of $440 million, mainly from Boeing 787, Airbus A220, and A350 programs due to production issues and cost increases.
The company's pending acquisition by Boeing is expected to close in mid-2025. Spirit's cash balance stood at $537 million, supported by advance payments from Boeing ($200 million) and Airbus ($70 million). Management expressed substantial doubt about the company's ability to continue as a going concern, citing needs for additional funding to sustain operations. The backlog at quarter-end was approximately $47 billion.
Spirit AeroSystems (NYSE: SPR) ha riportato i risultati finanziari del quarto trimestre 2024 con ricavi di 1,7 miliardi di dollari e un utile per azione (EPS) di $(5,38). L'azienda ha registrato un flusso di cassa operativo di 137 milioni di dollari e un flusso di cassa libero di 91 milioni di dollari.
I principali punti operativi includono un aumento delle consegne in tutti i programmi: raddoppio per il 737, aumento del 37% per l'A220 e del 15% per l'A350 rispetto al trimestre precedente. Tuttavia, il trimestre ha visto sfide significative con perdite nette future di 440 milioni di dollari, principalmente dai programmi Boeing 787, Airbus A220 e A350 a causa di problemi di produzione e aumenti dei costi.
Si prevede che l'acquisizione in sospeso da parte di Boeing si chiuda a metà del 2025. Il saldo di cassa di Spirit si attestava a 537 milioni di dollari, supportato da pagamenti anticipati da Boeing (200 milioni di dollari) e Airbus (70 milioni di dollari). La direzione ha espresso notevoli dubbi sulla capacità dell'azienda di continuare come entità operativa, citando la necessità di ulteriori finanziamenti per sostenere le operazioni. L'ordine arretrato a fine trimestre era di circa 47 miliardi di dollari.
Spirit AeroSystems (NYSE: SPR) reportó resultados financieros del cuarto trimestre de 2024 con ingresos de 1.7 mil millones de dólares y una utilidad por acción (EPS) de $(5.38). La empresa reportó un flujo de efectivo operativo de 137 millones de dólares y un flujo de efectivo libre de 91 millones de dólares.
Los aspectos operativos clave incluyen un aumento en las entregas en todos los programas: un incremento del doble para el 737, del 37% para el A220 y del 15% para el A350 en comparación con el trimestre anterior. Sin embargo, el trimestre enfrentó desafíos significativos con pérdidas netas futuras de 440 millones de dólares, principalmente de los programas Boeing 787, Airbus A220 y A350 debido a problemas de producción y aumentos de costos.
Se espera que la adquisición pendiente por parte de Boeing se cierre a mediados de 2025. El saldo de efectivo de Spirit era de 537 millones de dólares, respaldado por pagos anticipados de Boeing (200 millones de dólares) y Airbus (70 millones de dólares). La dirección expresó dudas significativas sobre la capacidad de la empresa para continuar como una entidad operativa, citando la necesidad de financiamiento adicional para mantener las operaciones. La cartera de pedidos al final del trimestre era de aproximadamente 47 mil millones de dólares.
스피릿 에어로시스템즈 (NYSE: SPR)는 2024년 4분기 재무 결과를 보고하며 수익이 17억 달러에 달하고 주당순이익(EPS)은 $(5.38)이라고 발표했습니다. 이 회사는 운영에서 1억 3,700만 달러의 현금을 보고하고 자유 현금 흐름이 9,100만 달러에 달했습니다.
주요 운영 하이라이트에는 프로그램 전반에 걸쳐 증가된 납품이 포함됩니다: 737의 경우 두 배 증가, A220의 경우 37%, A350의 경우 15%가 이전 분기와 비교하여 증가했습니다. 그러나 이 분기는 생산 문제와 비용 증가로 인해 4억 4천만 달러의 순손실이라는 상당한 도전에 직면했습니다.
보잉에 의한 인수는 2025년 중반에 마무리될 것으로 예상됩니다. 스피릿의 현금 잔고는 5억 3천7백만 달러로, 보잉(2억 달러)과 에어버스(7천만 달러)로부터의 선불 지원을 받았습니다. 경영진은 운영을 지속하기 위한 추가 자금이 필요하다고 언급하며 회사의 지속 가능성에 대해 상당한 의구심을 표명했습니다. 분기 말 시점의 수주 잔고는 약 470억 달러였습니다.
Spirit AeroSystems (NYSE: SPR) a annoncé les résultats financiers du quatrième trimestre 2024 avec des revenus de 1,7 milliard de dollars et un bénéfice par action (EPS) de $(5,38). L'entreprise a déclaré un flux de trésorerie provenant des opérations de 137 millions de dollars et un flux de trésorerie libre de 91 millions de dollars.
Les principaux points opérationnels comprennent une augmentation des livraisons dans tous les programmes : doublement pour le 737, augmentation de 37 % pour l'A220 et de 15 % pour l'A350 par rapport au trimestre précédent. Cependant, le trimestre a connu des défis importants avec des pertes nettes futures de 440 millions de dollars, principalement des programmes Boeing 787, Airbus A220 et A350 en raison de problèmes de production et d'augmentation des coûts.
L'acquisition en cours par Boeing devrait se clôturer à la mi-2025. Le solde de trésorerie de Spirit s'élevait à 537 millions de dollars, soutenu par des paiements anticipés de Boeing (200 millions de dollars) et d'Airbus (70 millions de dollars). La direction a exprimé de sérieux doutes quant à la capacité de l'entreprise à poursuivre ses activités, citant le besoin de financement supplémentaire pour maintenir les opérations. Le carnet de commandes à la fin du trimestre s'élevait à environ 47 milliards de dollars.
Spirit AeroSystems (NYSE: SPR) hat die finanziellen Ergebnisse für das vierte Quartal 2024 veröffentlicht, mit Einnahmen von 1,7 Milliarden Dollar und einem Gewinn pro Aktie (EPS) von $(5,38). Das Unternehmen berichtete über einen operativen Cashflow von 137 Millionen Dollar und einen freien Cashflow von 91 Millionen Dollar.
Wesentliche betriebliche Höhepunkte umfassen erhöhte Lieferungen in allen Programmen: Verdopplung für den 737, 37 % für den A220 und 15 % für den A350 im Vergleich zum vorherigen Quartal. Allerdings sah das Quartal erhebliche Herausforderungen mit netto künftigen Verlusten von 440 Millionen Dollar, hauptsächlich aus den Programmen Boeing 787, Airbus A220 und A350 aufgrund von Produktionsproblemen und Kostensteigerungen.
Die bevorstehende Übernahme durch Boeing wird voraussichtlich Mitte 2025 abgeschlossen sein. Der Bargeldbestand von Spirit betrug 537 Millionen Dollar, unterstützt durch Vorauszahlungen von Boeing (200 Millionen Dollar) und Airbus (70 Millionen Dollar). Das Management äußerte erhebliche Zweifel an der Fähigkeit des Unternehmens, als fortbestehendes Unternehmen zu operieren, und verwies auf den Bedarf an zusätzlicher Finanzierung zur Aufrechterhaltung des Betriebs. Der Auftragsbestand zum Quartalsende betrug etwa 47 Milliarden Dollar.
- Increased deliveries across major programs (737, A220, A350)
- Improved cash flow with $137M from operations
- $47B backlog at quarter end
- Secured additional funding through customer advances ($270M total)
- Completed FMI sale for $165M in January 2025
- Net forward losses of $440M across major programs
- Revenue decrease compared to Q4 2023
- EPS declined to $(5.38) from $0.66 year-over-year
- Going concern warning issued by management
- Additional funding needed to sustain operations
- Excess capacity costs increased to $54M from $31M year-over-year
Insights
Spirit AeroSystems' Q4 2024 results reveal severe financial distress with an EPS loss of
Most concerning is the
The company's liquidity strategy currently depends on advances from Boeing (
The
While Spirit maintains a
Spirit's operational metrics reveal concerning production inefficiencies despite increased delivery volumes. While the company reports deliveries up "twofold on the 737,
The segment breakdown is particularly revealing: The Commercial segment, Spirit's core business, continues to struggle with
Defense & Space performed better with increased revenue from the Sikorsky CH-53K and strategic programs, but even this segment recorded
The FTC's "second request" for information regarding the Boeing acquisition signals heightened regulatory scrutiny, potentially complicating or delaying the transaction. This regulatory uncertainty, combined with Spirit's disclosed requirement to divest Airbus-related business as a closing condition, creates a complex execution challenge for a company already struggling with its core operations.
The pending Boeing acquisition appears to be Spirit's primary lifeline, with financial restructuring, credit amendments, and advance payment agreements all contingent on the transaction proceeding. The company's deliberate suspension of financial guidance "in light of the Merger Agreement" further suggests management is fully focused on the acquisition path rather than standalone recovery strategies.
Fourth Quarter 2024
- Revenues of
$1.7 billion - EPS of
$(5.38) $(4.22) - Cash provided by operations of
$137 million $91 million
Spirit AeroSystems Holdings, Inc. (NYSE: SPR) ("Spirit," "Spirit AeroSystems" or the "Company") reported fourth quarter and full-year 2024 financial results.
"As we advance toward the anticipated close of the acquisition by Boeing in mid-2025, we continue to make meaningful progress on several key fronts," said Pat Shanahan, President and Chief Executive Officer, Spirit AeroSystems. "We've made significant strides to improve operations, and our teams are working diligently to develop thoughtful transition plans designed to position us for long-term success. These efforts underscore our commitment to a smooth integration while maintaining focus on delivering value for our customers, employees and stakeholders."
"We are seeing the results of our process improvement initiatives this quarter with a meaningful increase in both the quality and number of deliveries. Deliveries were up twofold on the 737,
Revenue
Spirit's revenue in the fourth quarter of 2024 decreased from the same period of 2023, primarily due to the impacts from the Boeing Memorandum of Agreement (the "MOA") executed in October 2023 including favorable pricing adjustments on the Boeing 787 program and the reversal of the potential claim related to the Boeing 737 vertical fin attach fittings issue, partially offset by higher Defense and Space revenues in the fourth quarter of 2024. Overall deliveries increased during the fourth quarter of 2024 compared to the same period of 2023, including higher Boeing 737 deliveries.
Spirit's backlog at the end of the fourth quarter of 2024 was approximately
Earnings
Operating loss was recognized in the fourth quarter of 2024, compared to operating income in the same period of 2023. The operating income recognized in the fourth quarter of 2023 included the favorable impact of the Boeing MOA executed in October 2023 to the Boeing 787 program, including favorable change in estimates as well as a material right obligation liability reversal.
Total change in estimates in the fourth quarter of 2024 included net forward losses of
Fourth quarter 2024 EPS was
Cash
Cash from operations and free cash flow* during the fourth quarter of 2024 improved compared to the same period of 2023, largely resulting from higher Boeing 737 deliveries as well as the timing of working capital.
During the fourth quarter of 2024, the Company announced agreements with both major customers, Boeing and Airbus, which provided cash funding. Boeing agreed to provide advance payments of up to
Developments in 2024 have resulted in significant reductions in projected revenue and cash flows over the next twelve months. These developments include production and delivery process changes implemented by Boeing, lower than planned 737 production rates and the lack of price increases on Airbus programs. Although the customer advances received in 2024 have provided essential operational liquidity, there can be no assurance that Spirit will be able to obtain additional advances from customers, repay current advances on the specified due dates, renegotiate the due dates or otherwise obtain additional liquidity as needed under acceptable terms or at all. We will need to obtain additional funding to sustain operations, as we expect to continue generating operating losses for the foreseeable future.
Management has developed a plan designed to improve liquidity. These plans are dependent upon many factors, including, among other things, the outcomes of active discussions related to the timing or amounts of repayment for certain customer advances, achieving forecasted 737 deliveries, the timing and expected proceeds received from certain divestitures and the expected timing and outcome of the transactions contemplated by the merger agreement with Boeing and the term sheet with Airbus announced June 30, 2024. Management is also evaluating additional strategies intended to improve liquidity to support operations, including, but not limited to, additional customer advances and restructuring of operations in an effort to increase efficiency and decrease expenses. However, there can be no assurance that these plans or strategies will sufficiently improve our liquidity needs or that we will otherwise realize the anticipated benefits. Accordingly, substantial doubt about the Company's ability to continue as a going concern exists.
Pending Boeing Acquisition of Spirit AeroSystems Update
On June 30, 2024, the Company entered into an Agreement and Plan of Merger with The Boeing Company (the "Merger Agreement"). Upon completion of the merger, subject to the terms and conditions of the merger agreement, the Company would become a wholly owned subsidiary of Boeing. The closing of the transaction is expected to occur in mid-2025, subject to the completion of the divestiture of certain portions of Spirit's business related to the performance by Spirit and its subsidiaries of their obligations under their supply contracts with Airbus SE and other closing conditions, including receipt of regulatory approvals. In connection with the proposed merger, Spirit and Boeing have each received a request for additional information ("second request") from the Federal Trade Commission as part of the regulatory review process under the Hard-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"). The second request extends the waiting period imposed by the HSR Act until 30 days after Spirit and Boeing have substantially complied with the requests or the waiting period is terminated sooner by the Federal Trade Commission.
Subsequent Events
On November 17, 2024, Spirit and its subsidiary Fiber Materials Inc. ("FMI") entered into a Stock Purchase Agreement with Tex-Tech Industries, Inc. ("Tex-Tech") providing for, among other things, the acquisition by Tex-Tech from Spirit of all of the outstanding equity interests in FMI for an aggregate purchase price of
On January 22, 2025, the Company and Boeing entered into Amendment 2 to Memorandum of Agreement (the "April 2024 MOA Amendment") amending the parties' April 18, 2024 Memorandum of Agreement, as previously amended (the "April 2024 MOA"), by, among other things (1) replacing Article 5 "Repayment" of the April 2024 MOA and providing for the Company to repay to Boeing the
On January 22, 2025, the Company and Boeing entered into Amendment 2 to the 737 Production Rate Advance Memorandum of Agreement dated April 28, 2023 (the "April 2023 MOA Amendment"). The April 2023 MOA Amendment amended the parties' Memorandum of Agreement dated April 28, 2023, as previously amended (the "April 2023 MOA"), by, among other things (1) replacing Section 4 "Advance" of the April 2023 MOA and providing for Spirit to repay to Boeing the
On January 31, 2025, the Company's shareholders voted to approve the proposed acquisition of Spirit AeroSystems by The Boeing Company.
On February 14, 2025, the Company and its subsidiaries Spirit AeroSystems, Inc. and Spirit AeroSystems North Carolina, Inc. entered into (i) the First Amendment to Delayed-Draw Bridge Credit Agreement (the "Bridge Credit Agreement Amendment") with Morgan Stanley Senior Funding, Inc. ("MSSF"), as lender and as administrative agent, with respect to the Company's Delayed-Draw Bridge Credit Agreement, dated as of June 30, 2024 (as in effect prior to such date, the "Prior Bridge Credit Agreement"), with MSSF, as lender, as administrative agent and as collateral agent, and (ii) the Third Amendment to Term Loan Credit Agreement (the "TLB Credit Agreement Amendment" and, together with the Bridge Credit Agreement Amendment, the "Amendments") with Bank of America, N.A. ("BofA"), as administrative agent, and the lenders party thereto with respect to the Term Loan Credit Agreement, dated as of October 5, 2020 (as amended and in effect prior to such date, the "Prior TLB Credit Agreement," and each of the Prior TLB Credit Agreement and the Prior Bridge Credit Agreement a "Prior Credit Agreement"), among the Spirit AeroSystems Inc., BofA, as administrative agent and as collateral agent, and the lenders from time to time party thereto. Pursuant to the applicable Amendment, each Prior Credit Agreement was amended to remove the requirement that the audit opinion with respect to the Company's annual financial statements for the fiscal year ending December 31, 2024 not be subject to a "going concern" qualification.
Segment Results
Commercial
Commercial segment revenue in the fourth quarter of 2024 decreased from the same period of the prior year, primarily due to the Boeing MOA executed in October 2023. Operating margin for the fourth quarter of 2024 decreased compared to the same period of 2023, primarily driven by the favorable changes in estimates recorded in the prior year resulting from the October 2023 Boeing MOA. In the fourth quarter of 2024, change in estimates for the segment included
Defense & Space
Defense & Space segment revenue in the fourth quarter of 2024 increased from the same period of the prior year. This increase was primarily due to higher activity on the Sikorsky CH-53K and strategic programs. Operating margin for the fourth quarter of 2024 decreased compared to the same period of 2023, primarily due to higher forward losses, driven largely by the KC-135 program, and lower production on the KC-46 Tanker program during the quarter, partially offset by higher production activities on the Sikorsky CH-53K program and favorable cumulative catch-up adjustments, primarily related to strategic program activity. The segment recorded net forward losses of
Aftermarket
Aftermarket segment revenue in the fourth quarter of 2024 increased from the same period of the prior year, primarily due to higher spare part sales. Operating margin in the fourth quarter of 2024 decreased compared to the fourth quarter of 2023, primarily due to sales mix.
2024 Financial Outlook
In light of the Merger Agreement, and consistent with customary practice during the pendency of such transactions, Spirit will not provide guidance.
Additionally, due to the Merger Agreement, no conference call will be held in conjunction with this release. Full details of the Company's financial results are available in the Company's Annual Report on Form 10-K.
* Non-GAAP financial measure, see Appendix for definition and reconciliation |
Cautionary Statement Regarding Forward-Looking Statements
You should read the discussion of our financial condition and results of operations in conjunction with the condensed consolidated financial statements and the notes to the condensed consolidated financial statements appearing in the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. The press release may include "forward-looking statements" that 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," "designed," "ensure," "estimate," "expect," "forecast," "goal," "intend," "may," "might," "model," "objective," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements are based on circumstances as of the date on which the statements are made and they reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown, including, but not limited to, those described in the "Risk Factors" sections of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the
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, but are not limited to, the following:
- our ability to continue as a going concern and satisfy our liquidity needs, the success of our liquidity enhancement plans, operational and efficiency initiatives, our ability to access the capital and credit markets (including as a result of any contractual limitations, including under the Agreement and Plan of Merger (the "Merger Agreement"), dated June 30, 2024, among Spirit AeroSystems Holdings, Inc. ("Holdings"), The Boeing Company ("Boeing"), and Sphere Acquisition Corp., a wholly-owned subsidiary of Boeing, the outcomes of discussions related to the timing or amounts of repayment for certain customer advances, and the costs and terms of any additional financing;
- the continued fragility of the global aerospace supply chain including our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components, including increases in energy, freight, and other raw material costs as a result of inflation or continued global inflationary pressures;
- our ability and our suppliers' ability and willingness to meet stringent delivery (including quality and timeliness) standards and accommodate changes in the build rates or model mix of aircraft under existing contractual commitments, including the ability or willingness to staff appropriately or expend capital for current production volumes and anticipated production volume increases;
- our ability to maintain continuing, uninterrupted production at our manufacturing facilities and our suppliers' facilities;
- our ability, and our suppliers' ability, to attract and retain the skilled work force necessary for production and development in an extremely competitive market;
- the effect of economic conditions, including increases in interest rates and inflation, on the demand for our and our customers' products and services, on the industries and markets in which we operate in the
U.S. and globally, and on the global aerospace supply chain; - the general effect of geopolitical conditions, including
Russia's invasion ofUkraine and the resultant sanctions being imposed in response to the conflict, including any trade and transport restrictions; - the conflict in the
Middle East could impact certain suppliers' ability to continue production or make timely deliveries of supplies required to produce and timely deliver our products, and may result in sanctions being imposed in response to the conflict, including trade and transport restrictions; - our relationships with the unions representing many of our employees, including our ability to successfully negotiate new agreements, and avoid labor disputes and work stoppages with respect to our union-represented employees;
- the impact of significant health events, such as pandemics, contagions or other public health emergencies (including the COVID-19 pandemic) or fear of such events, on the demand for our and our customers' products and services, and on the industries and markets in which we operate in the
U.S. and globally; - 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 and Airbus SE and its affiliates for a significant portion of our revenues;
- the business condition and liquidity of our customers and their ability to satisfy their contractual obligations to the Company;
- the certainty of our backlog, including the ability of customers to cancel or delay orders prior to shipment on short notice, and the potential impact of regulatory approvals of existing and derivative models;
- our ability to accurately estimate and manage performance, cost, margins, and revenue under our contracts, and the potential for additional forward losses on new and maturing programs;
- our accounting estimates for revenue and costs for our contracts and potential changes to those estimates;
- our ability to continue to grow and diversify our business, execute our growth strategy, and secure replacement programs, including our ability to enter into profitable supply arrangements with additional customers;
- the outcome of product warranty or defective product claims and the impact settlement of such claims may have on our accounting assumptions;
- competitive conditions in the markets in which we operate, including in-sourcing by commercial aerospace original equipment manufacturers;
- our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing, Airbus SE and its affiliates and other customers;
- the possibility that our cash flows may not be adequate for our additional capital needs;
- any reduction in our credit ratings;
- our ability to avoid or recover from cyber or other security attacks and other operations disruptions;
- legislative or regulatory actions, both domestic and foreign, impacting our operations, including the effect of changes in tax laws and rates and our ability to accurately calculate and estimate the effect of such changes;
- spending by the
U.S. and other governments on defense; - pension plan assumptions and future contributions;
- the effectiveness of our internal control over financial reporting;
- the outcome or impact of ongoing or future litigation, arbitration, claims, and regulatory actions or investigations, including our exposure to potential product liability and warranty claims;
- adequacy of our insurance coverage;
- our ability to continue selling certain receivables through our receivables financing programs;
- our ability to effectively integrate recent acquisitions, along with other acquisitions we pursue, and generate synergies and other cost savings therefrom, while avoiding unexpected costs, charges, expenses, and adverse changes to business relationships and business disruptions;
- the risks of doing business internationally, including fluctuations in foreign currency exchange rates, impositions of tariffs or embargoes, trade restrictions, compliance with foreign laws, and domestic and foreign government policies; and
- risks and uncertainties relating to the proposed acquisition of Spirit by Boeing (the "Merger") pursuant to the Merger Agreement and the transactions contemplated by our term sheet with Airbus SE (the "Airbus Business Disposition" and, together with the Merger, the "Transactions"), including, among others, the possibility that we are unable to negotiate and enter into definitive agreements with Airbus SE and its affiliates with respect to the Airbus Business Disposition; the possible inability of the parties to a Transaction to obtain the required regulatory approvals for such Transaction and to satisfy the other conditions to the closing of such Transaction on a timely basis or at all; the possible occurrence of events that may give rise to a right of one or more of the parties to the Merger Agreement to terminate the Merger Agreement; the risk that we are unable to consummate the Transactions on a timely basis or at all for any reason, including, without limitation, failure to obtain the required regulatory approvals, or failure to satisfy other conditions the closing of either of the Transactions; the potential for the pendency of the Transactions or any failure to consummate the Transactions to adversely affect the market price of Spirit common stock or our financial performance or business relationships; risks relating to the value of Boeing common stock to be issued in the Merger; the possibility that the anticipated benefits of the Transactions cannot be realized in full or at all or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of our operations with those of Boeing will be greater than expected; risks relating to significant transaction costs; the intended or actual tax treatment of the Transactions; litigation or other legal or regulatory action relating to the Transactions or otherwise relating to us or other parties to the Transactions instituted against us or such other parties or Spirit's or such other parties' respective directors and officers and the effect of the outcome of any such litigation or other legal or regulatory action; risks associated with contracts containing provisions that may be triggered by the Transactions; potential difficulties in retaining and hiring key personnel or arising in connection with labor disputes during the pendency of or following the Transactions; the risk of other Transaction-related disruptions to our business, including business plans and operations; the potential for the Transactions to divert the time and attention of management from ongoing business operations; the potential for contractual restrictions under the agreements relating to the Transactions to adversely affect our ability to pursue other business opportunities or strategic transactions; and competitors' responses to the Transactions.
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. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. 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. You should review carefully the section captioned "Risk Factors" in the 2024 Form 10-K for a more complete discussion of these and other factors that may affect our business.
Table 1. Summary Financial Results (unaudited) | ||||||
4th Quarter | Twelve Months | |||||
($ in millions, except per share data) | 2024 | 2023 | Change | 2024 | 2023 | Change |
Net Revenues | (9 %) | 4 % | ||||
Operating (Loss) Income | ( | ** | ( | ( | ** | |
Operating (Loss) Income as a % of Revenues | (34.9 %) | 11.9 % | ** | (28.3 %) | (2.2 %) | ** |
Net (Loss) Income | ( | ** | ( | ( | ** | |
Net (Loss) Income as a % of Revenues | (38.2 %) | 4.2 % | ** | (33.9 %) | (10.2 %) | ** |
Net (Loss) Income Per Share (Fully Diluted) | ( | ** | ( | ( | ** | |
Adjusted Net (Loss) Income Per Share (Fully Diluted)* | ( | ** | ( | ( | ** | |
Fully Diluted Weighted Avg Share Count | 117.3 | 116.2 | 116.8 | 106.6 | ||
** Represents an amount in excess of |
Table 2. Cash Flow, Cash and Total Debt (unaudited) | ||||||
4th Quarter | Twelve Months | |||||
($ in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change |
Cash provided by (used in) Operations | 20 % | ( | ( | ** | ||
Purchases of Property, Plant & Equipment | ( | ( | 36 % | ( | ( | (3 %) |
Free Cash Flow* | ** | ( | ( | ** | ||
December 31, | December 31, | |||||
Cash and Total Debt | 2024 | 2023 | ||||
Cash | ||||||
Total Debt | ||||||
** Represents an amount in excess of |
Table 3. Segment Reporting (unaudited) | ||||||
4th Quarter | Twelve Months | |||||
($ in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change |
Segment Revenues | ||||||
Commercial | (16.6 %) | 0.9 % | ||||
Defense & Space | 268.7 | 205.3 | 30.9 % | 975.2 | 789.0 | 23.6 % |
Aftermarket | 117.5 | 90.5 | 29.8 % | 414.0 | 373.9 | 10.7 % |
Total Segment Revenues | (8.9 %) | 4.4 % | ||||
Segment (Loss) Earnings from Operations | ||||||
Commercial | ( | ** | ( | ** | ||
Defense & Space | (1.0) | 3.7 | ** | 94.7 | 44.7 | ** |
Aftermarket | 11.9 | 21.0 | (43.3 %) | 55.3 | 82.4 | (32.9 %) |
Total Segment Operating (Loss) Earnings | ( | ** | ( | ** | ||
Segment Operating (Loss) Earnings as % of Revenues | ||||||
Commercial | (37.0 %) | 17.6 % | ** | (30.9 %) | 1.4 % | ** |
Defense & Space | (0.4 %) | 1.8 % | ** | 9.7 % | 5.7 % | 400 BPS |
Aftermarket | 10.1 % | 23.2 % | ** | 13.4 % | 22.0 % | (860) BPS |
Total Segment Operating (Loss) Earnings as % of Revenues | (27.7 %) | 16.1 % | ** | (21.7 %) | 3.2 % | ** |
Unallocated Expense | ||||||
SG&A | ( | ( | (64.8 %) | ( | ( | (29.7 %) |
Research & Development | (13.1) | (11.5) | (13.9 %) | (47.5) | (45.4) | (4.6 %) |
Total (Loss) Earnings from Operations | ( | ** | ( | ( | ** | |
Total Operating (Loss) Earnings as % of Revenues | (34.9 %) | 11.9 % | ** | (28.3 %) | (2.2 %) | ** |
** Represents an amount in excess of |
Spirit Shipset Deliveries | |||||||
(one shipset equals one aircraft) | |||||||
4th Quarter | Twelve Months | ||||||
2024 | 2023 | 2024 | 2023 | ||||
B737 | 133 | 104 | 268 | 356 | |||
B767 | 5 | 9 | 25 | 33 | |||
B777 | 3 | 9 | 28 | 32 | |||
B787 | 19 | 11 | 55 | 36 | |||
Total Boeing | 160 | 133 | 376 | 457 | |||
A220 | 26 | 20 | 82 | 63 | |||
A320 Family | 181 | 150 | 648 | 573 | |||
A330 | 9 | 9 | 36 | 35 | |||
A350 | 15 | 17 | 59 | 54 | |||
Total Airbus | 231 | 196 | 825 | 725 | |||
Business/Regional Jet | 66 | 69 | 231 | 236 | |||
Total | 457 | 398 | 1,432 | 1,418 | |||
Spirit AeroSystems Holdings, Inc. | |||||||
Condensed Consolidated Statements of Operations | |||||||
(unaudited) | |||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
($ in millions, except per share data) | |||||||
Net Revenues | $ 1,651.3 | $ 1,812.9 | $ 6,316.6 | $ 6,047.9 | |||
Operating costs and expenses | |||||||
Cost of sales | 2,108.7 | 1,521.5 | 7,689.0 | 5,841.7 | |||
Selling, general and administrative | 106.6 | 64.7 | 365.5 | 281.9 | |||
Restructuring costs | - | - | 0.7 | 7.2 | |||
Research and development | 13.1 | 11.5 | 47.5 | 45.4 | |||
Other operating expense | - | 0.2 | - | 5.9 | |||
Total operating costs and expenses | 2,228.4 | 1,597.9 | 8,102.7 | 6,182.1 | |||
Operating (loss) income | (577.1) | 215.0 | (1,786.1) | (134.2) | |||
Interest expense and financing fee amortization | (100.2) | (97.6) | (353.5) | (318.7) | |||
Other income (expense), net | 28.3 | (20.4) | (2.0) | (140.4) | |||
(Loss) income before income taxes and equity in net (loss) | (649.0) | 97.0 | (2,141.6) | (593.3) | |||
Income tax benefit (provision) | 18.3 | (21.4) | 2.4 | (22.5) | |||
(Loss) income before equity in net income (loss) of affiliates | (630.7) | 75.6 | (2,139.2) | (615.8) | |||
Equity in net (loss) income of affiliates | - | (0.1) | 0.2 | (0.3) | |||
Net (loss) income | (630.7) | 75.5 | (2,139.0) | (616.1) | |||
Less noncontrolling interest in earnings of subsidiary | (0.2) | (0.1) | (0.8) | (0.1) | |||
Net (loss) income attributable to common shareholders | $ (630.9) | $ 75.4 | $ (2,139.8) | $ (616.2) | |||
(Loss) earnings per share | |||||||
Basic | $ (5.38) | $ 0.68 | $ (18.32) | $ (5.78) | |||
Diluted | $ (5.38) | $ 0.66 | $ (18.32) | $ (5.78) | |||
Spirit AeroSystems Holdings, Inc. | |||
Condensed Consolidated Balance Sheets | |||
(unaudited) | |||
December 31, 2024 | December 31, 2023 | ||
($ in millions) | |||
Assets | |||
Cash and cash equivalents | $ 537.0 | $ 823.5 | |
Restricted cash | - | 0.1 | |
Accounts receivable, net | 395.3 | 585.5 | |
Contract assets, short-term | 777.9 | 522.9 | |
Inventory, net | 1,891.7 | 1,767.3 | |
Assets of business held for sale | 100.6 | - | |
Other current assets | 58.0 | 52.5 | |
Total current assets | 3,760.5 | 3,751.8 | |
Property, plant and equipment | 1,947.9 | 2,084.2 | |
Right of use assets | 79.0 | 92.1 | |
Pension assets | 49.4 | 33.5 | |
Restricted plan assets | 41.2 | 61.1 | |
Deferred income taxes | 0.1 | 0.1 | |
Goodwill | 630.0 | 631.2 | |
Intangible assets, net | 149.5 | 196.2 | |
Other assets | 105.2 | 99.9 | |
Total assets | $ 6,762.8 | $ 6,950.1 | |
Liabilities | |||
Accounts payable | $ 1,041.1 | $ 1,106.8 | |
Accrued expenses | 453.3 | 420.1 | |
Profit sharing | 59.0 | 15.7 | |
Current portion of long-term debt | 424.5 | 64.8 | |
Operating lease liabilities, short-term | 10.0 | 9.1 | |
Advance payments, short-term | 158.1 | 38.3 | |
Contract liabilities, short-term | 270.3 | 192.6 | |
Forward loss provision, short-term | 471.5 | 256.6 | |
Deferred revenue and other deferred credits, short-term | 75.4 | 49.6 | |
Customer financing, short-term | 532.0 | - | |
Liabilities of business held for sale | 18.8 | - | |
Other current liabilities | 53.4 | 44.7 | |
Total current liabilities | 3,567.4 | 2,198.3 | |
Long-term debt | 3,969.7 | 4,018.7 | |
Operating lease liabilities, long-term | 69.8 | 84.3 | |
Advance payments, long-term | 181.0 | 301.9 | |
Pension/OPEB obligation | 24.9 | 30.3 | |
Contract liabilities, long-term | 177.4 | 161.3 | |
Forward loss provision, long-term | 799.8 | 224.1 | |
Deferred revenue and other deferred credits, long-term | 46.7 | 76.7 | |
Deferred grant income liability - non-current | 25.1 | 25.8 | |
Deferred income taxes | 7.8 | 9.1 | |
Customer financing, long-term | 372.0 | 180.0 | |
Other non-current liabilities | 137.2 | 135.5 | |
Stockholders' Equity (Deficit) | |||
Common stock, Class A par value | 1.2 | 1.2 | |
Additional paid-in capital | 1,457.6 | 1,429.1 | |
Accumulated other comprehensive loss | (100.1) | (89.6) | |
Retained earnings | (1,523.5) | 616.3 | |
Treasury stock, at cost (41,587,480 shares each period, respectively) | (2,456.7) | (2,456.7) | |
Total stockholders' equity (deficit) | (2,621.5) | (499.7) | |
Noncontrolling interest | 5.5 | 3.8 | |
Total equity (deficit) | (2,616.0) | (495.9) | |
Total liabilities and equity (deficit) | $ 6,762.8 | $ 6,950.1 | |
Spirit AeroSystems Holdings, Inc. | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(unaudited) | ||||
For the Twelve Months Ended | ||||
December 31, 2024 | December 31, 2023 | |||
Operating activities | ($ in millions) | |||
Net loss | $ (2,139.0) | $ (616.1) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Depreciation and amortization expense | 305.4 | 315.6 | ||
Amortization of deferred financing fees | 15.4 | 12.6 | ||
Accretion of customer supply agreement | 2.5 | 2.6 | ||
Employee stock compensation expense | 38.1 | 29.2 | ||
Gain from derivative instruments | (3.6) | (0.5) | ||
(Gain) loss from foreign currency transactions | (12.1) | 7.5 | ||
Loss on extinguishment of debt | - | 11.8 | ||
Loss on disposition of assets | 2.0 | 6.9 | ||
Deferred taxes | 3.7 | 18.1 | ||
Pension and other post-retirement plans (income) expense | (11.5) | 55.1 | ||
Grant liability amortization | (1.2) | (1.1) | ||
Equity in net (income) loss of affiliates | (0.2) | 0.3 | ||
Forward loss provision | 793.0 | (194.9) | ||
Gain on settlement of financial instrument | (1.5) | (1.8) | ||
Asset impairment charges | 2.0 | - | ||
Change in fair value of acquisition consideration and settlement | - | (2.4) | ||
Gain on settlement of New Market Tax Credit incentive program | (5.7) | - | ||
Changes in assets and liabilities | ||||
Accounts receivable, net | 198.0 | (96.6) | ||
Inventory, net | (152.4) | (295.1) | ||
Contract assets | (280.3) | (18.0) | ||
Accounts payable and accrued liabilities | (49.9) | 213.8 | ||
Profit sharing/deferred compensation | 45.7 | (25.0) | ||
Advance payments | (0.2) | 114.1 | ||
Income taxes receivable/payable | (1.6) | (3.4) | ||
Contract liabilities | 100.3 | (3.0) | ||
Pension plans employer contributions | (1.6) | 186.6 | ||
Deferred revenue and other deferred credits | (3.6) | 53.6 | ||
Other | 37.4 | 4.3 | ||
Net cash used in operating activities | (1,120.9) | (225.8) | ||
Investing activities | ||||
Purchase of property, plant and equipment | (152.5) | (148.0) | ||
Other | 0.1 | 0.2 | ||
Net cash used in investing activities | (152.4) | (147.8) | ||
Financing activities | ||||
Proceeds from issuance of debt | 360.5 | 242.7 | ||
Borrowings under revolving credit facility | 1.6 | 5.4 | ||
Proceeds from issuance of long term bonds | - | 1,200.0 | ||
Proceeds from issuance of common stock, net | - | 220.7 | ||
Receipts from customer financing | 764.0 | 180.0 | ||
Payments on customer financing | (40.0) | - | ||
Principal payments of debt | (62.6) | (64.1) | ||
Payments on term loans | (5.9) | (5.9) | ||
Payments on revolving credit facility | (1.6) | (0.6) | ||
Payments on bonds | - | (1,200.0) | ||
Payment of acquisition consideration | - | (6.0) | ||
Payment of debt extinguishment costs | - | (11.8) | ||
Taxes paid related to net share settlement awards | (17.1) | (6.6) | ||
Proceeds from issuance of ESPP stock | 7.6 | 6.3 | ||
Debt issuance and financing costs | (11.0) | (28.5) | ||
Other | (1.0) | - | ||
Net cash provided by financing activities | 994.5 | 531.6 | ||
Effect of exchange rate changes on cash and cash equivalents | (0.6) | 9.5 | ||
Net (decrease) increase in cash, cash equivalents, and restricted cash for the period | (279.4) | 167.5 | ||
Cash, cash equivalents, and restricted cash, beginning of period | 845.9 | 678.4 | ||
Cash, cash equivalents, and restricted cash, end of period | $ 566.5 | $ 845.9 | ||
Reconciliation of Cash, Cash Equivalents, and Restricted Cash: | ||||
For the Twelve Months Ended | ||||
December 31, 2024 | December 31, 2023 | |||
Cash and cash equivalents, beginning of the period | $ 823.5 | $ 658.6 | ||
Restricted cash, short-term, beginning of the period | 0.1 | 0.2 | ||
Restricted cash, long-term, beginning of the period | 22.3 | 19.6 | ||
Cash, cash equivalents, and restricted cash, beginning of the period | $ 845.9 | $ 678.4 | ||
Cash and cash equivalents, end of the period | $ 537.0 | $ 823.5 | ||
Restricted cash, short-term, end of the period | - | 0.1 | ||
Restricted cash, long-term, end of the period | 29.5 | 22.3 | ||
Cash, cash equivalents, and restricted cash, end of the period | $ 566.5 | $ 845.9 | ||
Appendix
In addition to reporting our financial information using
Adjusted Diluted Earnings (Loss) Per Share. To provide additional transparency, we have disclosed non-GAAP adjusted diluted earnings (loss) per share (Adjusted EPS). This metric excludes various items that are not considered to be directly related to our operating performance. Management uses Adjusted EPS as a measure of business performance, and we believe this information is useful in providing period-to-period comparisons of our results. The most comparable GAAP measure is diluted earnings (loss) per share.
Free Cash Flow. Free Cash Flow is defined as GAAP cash provided by (used in) operating activities (also referred to herein as "cash from operations"), less capital expenditures for property, plant and equipment. Management believes Free Cash Flow provides investors with an important perspective on the cash available for stockholders, debt repayments including capital leases, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures. The most comparable GAAP measure is cash provided by (used in) operating activities. Management uses Free Cash Flow as a measure to assess both business performance and overall liquidity.
The tables below provide reconciliations between the GAAP and non-GAAP measures.
Adjusted EPS | ||||||||
4th Quarter | Twelve Months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
GAAP Diluted (Loss) Earnings Per Share | ( | ( | ( | |||||
Deferred Tax Asset Valuation Allowance (a) | 1.16 | (0.01) | 4.40 | 1.49 | ||||
Pension Termination Charges (b) | - | (0.03) | - | 0.43 | ||||
Adjusted Diluted (Loss) Earnings Per Share | ( | ( | ( | |||||
Diluted Shares (in millions) | 117.3 | 116.2 | 116.8 | 106.6 | ||||
(a) Represents the deferred tax asset valuation allowance (included in Income tax provision) | |||||||||
(b) Represents the net non-cash charges related to the termination of the | |||||||||
Free Cash Flow | ||||||||
4th Quarter | Twelve Months | |||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Cash from Operations | ( | ( | ||||||
Capital Expenditures | (46) | (72) | (153) | (148) | ||||
Free Cash Flow | ( | ( | ||||||
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SOURCE Spirit Aerosystems
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