Loading...
•
Apr 03
Spirit AeroSystems Q1 2025 Earnings Report
Spirit AeroSystems reported a decrease in revenue but an improvement in operating loss for the first quarter of 2025 compared to the same period in 2024.
Key Takeaways
Spirit AeroSystems reported first quarter 2025 revenues of $1.5 billion, a decrease from the prior year, primarily due to lower production activity on most Boeing programs. Despite the revenue decrease, the company saw an improvement in operating loss, largely due to less total change in estimates and a gain from the sale of Fiber Materials, Inc., partially offset by a warranty reserve.
Revenues for Q1 2025 were $1.5 billion, a decrease from $1.7 billion in Q1 2024.
The company reported an EPS of $(5.21) and an Adjusted EPS of $(4.25) for Q1 2025.
Cash used in operations was $420 million, and free cash flow usage was $474 million.
Operating loss improved to $(487) million in Q1 2025 from $(528) million in Q1 2024.
Spirit AeroSystems
Spirit AeroSystems
Spirit AeroSystems Revenue by Segment
Revenue by Segment
Commercial Revenue
CapyFin.comDefense & Space Revenue
CapyFin.comAftermarket Revenue
CapyFin.com Forward Guidance
Spirit AeroSystems will not provide financial guidance for 2025 due to the pending Merger Agreement with Boeing. The company expects to continue generating operating losses for the foreseeable future and will need additional funding to sustain operations.
Positive Outlook
- Management has developed a plan designed to improve liquidity.
- The company is evaluating additional strategies to improve liquidity and increase efficiency.
- The merger with Boeing is expected to close in Q3 2025, potentially providing stability.
- The definitive agreement with Airbus SE for asset transfer is expected to close concurrently with the Boeing merger.
- Airbus S.A.S. has agreed to provide non-interest-bearing lines of credit totaling $200 million to support Airbus programs.
Challenges Ahead
- Substantial doubt about the Company's ability to continue as a going concern exists.
- The company expects to continue generating operating losses for the foreseeable future.
- There is no assurance that Spirit will obtain additional advances from customers or renegotiate due dates for current advances.
- The company will need to obtain additional funding to sustain operations.
- The timing and outcome of the transactions contemplated by the merger agreement with Boeing and the stock and asset purchase agreement with Airbus are uncertain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income