Spirit AeroSystems Holdings, Inc. reported net revenues of $6.3 billion for the twelve months ended December 31, 2024, a 4.4% increase compared to the $6.0 billion in revenue generated during the same period in 2023. However, the company experienced a net loss of $2.1 billion in 2024, significantly higher than the $616.1 million loss in 2023. This increase in net loss is primarily attributed to a $1.4 billion unfavorable change in estimates, including $1.4 billion in forward loss charges and $62.4 million in unfavorable cumulative catch-up adjustments. The increase in forward loss charges is largely due to production performance and supply chain cost growth across several programs, including the A350, A220, B787, and B767.
The increase in net revenue was driven by higher production on the B777, A350, and A320 programs within the Commercial segment, along with increased Defense segment revenues from classified programs and the CH-53K, and higher Aftermarket sales. These gains were offset by revenue decreases on the B737, B767, B787, and business jet programs in the Commercial segment, and decreased P-8 and KC-46 Tanker sales in the Defense segment. The company's largest customer, Boeing, accounted for approximately 58% of net revenues in 2024, while Airbus contributed 21%.
Significant operational developments included a decrease in Boeing shipset deliveries (376 in 2024 versus 457 in 2023), primarily due to fewer B737 MAX deliveries resulting from increased quality and inspection measures. Conversely, Airbus deliveries increased to 825 shipsets in 2024 from 725 in 2023. The company also completed the sale of its Fiber Materials, Inc. (FMI) business for $165 million, a transaction that closed on January 13, 2025. As of December 31, 2024, Spirit AeroSystems employed approximately 20,370 people globally.
The company's financial condition is characterized by a total debt of $4.4 billion as of December 31, 2024, and a cash and cash equivalents balance of $537 million. The company's liquidity is a concern, with management highlighting substantial doubt about its ability to continue as a going concern. This concern stems from significant operating losses, lower-than-expected deliveries to Boeing due to new product verification processes, and challenges in aligning costs with fluctuating production rates. To address liquidity issues, the company received advances from Boeing and Airbus, and is implementing plans to improve liquidity, including operational efficiency initiatives and potential restructuring.
Looking ahead, Spirit AeroSystems anticipates continued operational challenges in 2025, focusing on quality, safety, compliance, operational execution, cost reduction, and the execution of strategic transactions, including the proposed acquisition by Boeing. The company acknowledges significant risks related to its industry, operations, business strategy, legal and regulatory matters, employment, debt, and the pending merger with Boeing. The company's outlook is contingent upon various factors, including the success of its liquidity enhancement plans, the global aerospace supply chain's stability, and the continued demand for its products.
About Spirit AeroSystems Holdings, Inc.
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