Loading...
•
Dec 31, 2024
Spirit AeroSystems Q4 2024 Earnings Report
Spirit AeroSystems reported a decrease in revenue and a significant operating loss in the fourth quarter of 2024, primarily due to impacts from the Boeing Memorandum of Agreement.
Key Takeaways
Spirit AeroSystems reported a fourth-quarter 2024 revenue of $1.7 billion, a decrease from the prior year, and an EPS of $(5.38), reflecting a substantial operating loss. The company's financial results were significantly impacted by the Boeing Memorandum of Agreement, leading to net forward losses and unfavorable cumulative catch-up adjustments. Despite these challenges, Spirit AeroSystems made progress in deliveries and is advancing towards the anticipated acquisition by Boeing.
Fourth quarter 2024 revenue decreased to $1.7 billion from $1.813 billion in the same period of 2023, primarily due to the Boeing Memorandum of Agreement.
The company reported an EPS of $(5.38) and an Adjusted EPS of $(4.22) for Q4 2024, indicating a significant net loss.
Operating loss for the fourth quarter of 2024 was $(577) million, a substantial decline from an operating income of $215 million in Q4 2023.
Cash provided by operations was $137 million, and free cash flow was $91 million, showing an improvement compared to the same period last year.
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 due to the pending Merger Agreement with Boeing. The company is focused on the acquisition and related divestitures, with the transaction expected to close in mid-2025.
Positive Outlook
- Anticipated close of the acquisition by Boeing in mid-2025 is progressing.
- Significant strides made to improve operations and increase delivery quality and numbers.
- Deliveries were up twofold on the 737, 37% on the A220, and 15% on the A350 compared to the prior quarter.
- Customer advances from Boeing ($200 million) and Airbus ($70 million) provided essential operational liquidity.
- Shareholders approved the proposed acquisition by The Boeing Company on January 31, 2025.
Challenges Ahead
- Significant reductions in projected revenue and cash flows over the next twelve months due to production and delivery process changes by Boeing.
- Lower than planned 737 production rates and lack of price increases on Airbus programs negatively impacted financial outlook.
- Uncertainty regarding obtaining additional customer advances or renegotiating due dates for current advances.
- Expectation to continue generating operating losses for the foreseeable future, requiring additional funding.
- Substantial doubt about the Company's ability to continue as a going concern exists due to liquidity needs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income