Spirit AeroSystems reports third-quarter revenue of US$1.3 billion, up 30%

Spirit AeroSystems’ (Spirit) revenue in the third quarter of 2022 was US$1.3 billion, up 30% from the same period of 2021. This increase was primarily due to higher production deliveries on the Boeing 737 programme as well as increased aftermarket revenue, partially offset by lower production deliveries on the Boeing 747 programme. Overall deliveries increased to 316 shipsets during the third quarter of 2022 compared to 248 shipsets in the same period of 2021. This includes Boeing 737 deliveries of 69 shipsets compared to 47 shipsets in the same period of the prior year.

Spirit’s backlog at the end of the third quarter of 2022 was approximately US$36 billion, with work packages on all commercial platforms in the Airbus and Boeing backlog.  

Operating income for the third quarter of 2022 was US$4.5 million, compared to an operating loss of US$156.6 million in the same period of 2021. This increase in operating income was primarily driven by higher production on the Boeing 737 programme and lower forward loss charges, compared to the same period of the prior year.

Third-quarter 2022 earnings included net forward loss charges of US$49.1 million and unfavourable cumulative catch-up adjustments of US$4.9 million. The forward losses relate primarily to the Airbus A350, Boeing 787 and RB3070 programmes. The Airbus A350 programme forward loss reflects additional costs related to labour, freight and rework and the impact of part shortages. The forward loss on the Boeing 787 programme was driven by increased supply chain and other costs. The RB3070 nacelle programme forward loss was driven by increased engineering cost estimates.

Excess capacity costs recorded during the third quarter of 2022 were US$31.4 million. In comparison, during the third quarter of 2021, Spirit recorded US$70.4 million of net forward loss charges, unfavourable cumulative catch-up adjustments of US$2.8 million and excess capacity costs of US$57.1 million. The cash balance at the end of the third quarter of 2022 was US$671 million. (£1.00 = US$1.12 at time of publication)