Spirit AeroSystems Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 26, 2024, revealing significant challenges in profitability despite a modest increase in revenues. For the third quarter, net revenues reached $1,470.6 million, a 2.2% increase from $1,438.9 million in the same period of 2023. For the nine months, revenues rose to $4,665.3 million, up 10.2% from $4,235.0 million year-over-year.
However, the company faced substantial operating losses, with a third-quarter operating loss of $(350.1) million, compared to $(133.7) million in the prior year. For the nine months, the operating loss deepened to $(1,209.0) million from $(349.2) million. The net loss for the third quarter was $(476.6) million, significantly higher than $(203.9) million in the same quarter of 2023, while the nine-month net loss escalated to $(1,508.3) million from $(691.6) million.
The increase in losses was attributed to unfavorable changes in estimates, particularly in the A350, A220, B787, and B767 programs, which resulted in net forward loss charges of $217.2 million in the third quarter. The company also reported a gross loss of $(246.0) million for the quarter, compared to $(53.6) million in the previous year.
Spirit's financial position showed a decline in cash and cash equivalents, which fell to $217.6 million from $823.5 million at the end of 2023. The company’s total debt increased to $4,402.6 million, with $426.2 million classified as short-term. The increase in debt was partly due to a $350.0 million delayed-draw bridge credit agreement with Morgan Stanley, which was utilized for general corporate purposes.
Strategically, Spirit entered into a merger agreement with Boeing on June 30, 2024, which is expected to close in mid-2025, subject to regulatory approvals and shareholder consent. Additionally, the company signed a term sheet with Airbus for the acquisition of its Airbus business for $559.0 million, contingent upon due diligence and regulatory approvals.
Operationally, Spirit announced a 21-day furlough for approximately 700 employees due to maximum storage capacity on the B767 and B777 programs, reflecting ongoing challenges in production and supply chain management. The company is also negotiating pricing adjustments with Airbus for the A220 and A350 programs, amidst rising production costs and inflationary pressures.
About Spirit AeroSystems Holdings, Inc.
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