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Sep 28, 2023

Spirit AeroSystems Q3 2023 Earnings Report

Spirit AeroSystems experienced a revenue increase but faced operating losses due to higher changes in estimates and excess capacity costs.

Key Takeaways

Spirit AeroSystems reported a 13% increase in revenue to $1.4 billion for Q3 2023. However, the company faced an operating loss of $133.7 million, and a net loss of $204 million. The company appointed Pat Shanahan as interim President and CEO and executed a memorandum of agreement with Boeing.

Revenues increased by 13% to $1.4 billion due to higher production deliveries and increased Defense and Space and Aftermarket revenue.

Operating loss was $133.7 million, driven by higher changes in estimates and excess capacity costs.

EPS was $(1.94), while adjusted EPS was $(1.42), excluding the incremental deferred tax asset valuation allowance.

Cash used in operations was $111 million, and free cash flow usage was $136 million.

Total Revenue
$1.44B
Previous year: $1.28B
+12.7%
EPS
-$1.42
Previous year: -$0.15
+846.7%
Gross Profit
-$53.6M
Previous year: $82.9M
-164.7%
Cash and Equivalents
$374M
Previous year: $671M
-44.2%
Free Cash Flow
-$136M
Previous year: -$73.2M
+85.8%
Total Assets
$6.54B
Previous year: $6.71B
-2.6%

Spirit AeroSystems

Spirit AeroSystems

Spirit AeroSystems Revenue by Segment

Forward Guidance

Full-year 2023 cash used in operations is expected to be between $150 and $200 million; full-year 2023 free cash flow is expected to be a usage between $275 and $325 million.

Challenges Ahead

  • Full-year 2023 cash used in operations is expected to be between $150 and $200 million
  • Full-year 2023 free cash flow is expected to be a usage between $275 and $325 million.
  • This outlook reflects lower projected Boeing 737 deliveries of 345 to 360 units for the year.
  • The impacts of the memorandum of agreement with Boeing are incorporated into this outlook.

Revenue & Expenses

Visualization of income flow from segment revenue to net income