‍DALLAS — Spirit AeroSystems’ first quarter 2025 financial results, announced May 1 in Wichita, paint a mixed picture for the aerostructures supplier as it grapples with lower Boeing output, lingering warranty costs, and intensifying liquidity concerns, even as deliveries and Airbus activity lend some support.

Revenues Down 11% Year‑over‑year; Boeing 737 Drag Persists‍

Spirit’s Q1 revenues fell to US$1.52 billion, an 11 percent decline from US$1.70 billion a year earlier, driven chiefly by reduced production on Boeing programs—especially the 737 line—where rate increases expected in early 2024 were postponed. Partially offsetting this, Airbus program output grew: A320‑family and A220 shipments rose, helping total Airbus shipset deliveries to 236 versus 191 in Q1 2024.

Deliveries Climb But Backlog Still Solid‍

Despite softer revenue, Spirit delivered 429 shipsets—up from 307—reflecting catch‑up on delayed Boeing 737 shipments caused by the 2024 joint product verification process. The company’s backlog remains robust at roughly US$48 billion across Airbus and Boeing platforms, providing a multi‑year revenue runway.

Operating Loss Narrows; Warranty Reserve Weighs‍

Operating loss improved modestly to US$487 million (32.0 percent of revenue) from US$528 million (31.0 percent) a year ago. Key drivers included a US$80 million gain from the sale of Fiber Materials, Inc., and lower adverse changes in contract estimates. However, Spirit booked a US$116 million specific warranty reserve tied to alleged counterfeit titanium certifications, which it intends to seek recovery from suppliers.

“Net forward losses” on long‑term contracts declined from US$495 million in Q1 2024 to US$293 million this quarter, mainly due to improved performance on Airbus A350, A220, and Boeing 787 platforms—but excess‑capacity costs rose from US$26 million to US$47 million.

Loss Per Share Improves Slightly; Adjusted Eps Worsens‍

GAAP net loss per share narrowed to US$5.21 from US$5.31. At the same time, adjusted EPS (excluding deferred tax asset valuation allowance) worsened to a US$4.25 loss versus US$3.93 a year earlier, reflecting the impact of operational headwinds and warranty provisioning.

Cash Burn Intensifies; Free Cash Flow Remains Negative‍

Spirit used US$420 million in operating cash (versus US$416 million in Q1 2024) and reported negative free cash flow of US$474 million, driven by working capital timing and higher deliveries. Cash on hand stood at US$220 million, down from US$537 million at year‑end 2024, against total debt of US$4.36 billion.

Management warns that 2024’s delayed 737 rates, process changes, and lack of Airbus price increases have depressed near‑term cash flows and may require further customer advances or external financing. “Substantial doubt about the Company’s ability to continue as a going concern exists,” the release states.

Merger With Boeing, Airbus Divestiture Developments‍

Spirit remains slated to merge into Boeing in Q3 2025 pending regulatory approvals. In parallel, an Airbus divestiture agreement signed April 28 transfers certain Airbus‑related assets for US$439 million cash (plus adjustments), with closure tied to the Boeing transaction. Airbus has also extended non‑interest lines of credit totaling US$200 million, repayable by April 1, 2026, or upon divestiture closing.

Segment Highlights

• Commercial: Revenue down 14.3%; operating loss of US$465 million (–40.0 percent margin), weighed by lower Boeing output and the warranty reserve.
• Defense & Space: Revenue up 4.1% on P‑8 and CH‑53K activity; operating loss widened to US$11 million, reflecting forward losses on KC‑46 and KC‑135.
• Aftermarket: Revenue +3.4%; operating margin slipped to 14.6% on mix shifts.

Outlook Cautious Amid Transaction Pendency‍

Spirit has suspended forward‑looking guidance due to the Boeing merger. Executive leadership emphasizes ongoing efforts to secure additional advances, divest non‑core assets, and streamline operations to bolster liquidity ahead of the planned Q3 2025 closing.

As Spirit AeroSystems navigates the twin pressures of Boeing production variability and warranty contingencies, its ability to execute the Airbus asset sale and finalize the Boeing merger will be critical to shoring up its balance sheet and restoring investor confidence.

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