Spirit AeroSystems (SPR) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenue was $1.7 billion, down 9% year-over-year, with an operating loss of $577 million and net loss of $631 million.

• Adjusted EPS for Q4 was $(4.22), compared to $0.62 in Q4 2023; free cash flow improved to $91 million.

• Boeing acquisition expected to close mid-2025, pending regulatory approvals and divestitures.

• Significant operational improvements led to higher deliveries, especially for Boeing 737, Airbus A220, and A350.

Financial highlights

• Q4 2024 net loss per share was $(5.38); adjusted EPS excludes deferred tax asset valuation allowance and pension charges.

• Cash provided by operations was $137 million; year-end cash balance was $537 million.

• Free cash flow for Q4 was $91 million, up from $42 million in Q4 2023.

• Backlog at year-end was approximately $47 billion.

Segment performance

• Commercial segment revenue declined 16.6% year-over-year; operating margin fell to -37% due to net forward losses and excess capacity costs.

• Defense & Space revenue rose 30.9% year-over-year, but operating margin decreased due to higher forward losses on KC-135 and lower KC-46 production.

• Aftermarket revenue increased 29.8% year-over-year, with margin decline attributed to sales mix.