Spirit AeroSystems reported a US$577 million fourth-quarter operating loss on Friday, February 28, compared with US$215 million in operating income a year earlier, which had been bolstered by a funding agreement with key customer Boeing.
The major supplier to the U.S. planemaker reported steep losses for 2024, after warning in November that there was “substantial doubt” it would be able to continue as a going concern.
Spirit, which produces aerostructure parts for both Boeing and rival Airbus, said its deliveries were up on models for both planemakers during the quarter.
“We are seeing the results of our process improvement initiatives this quarter with a meaningful increase in both the quality and number of deliveries. Deliveries were up twofold on the Boeing 737, 37% on the Airbus A220 and 15% on the Airbus A350 compared to the prior quarter,” said Irene Esteves, Executive Vice President and Chief Financial Officer, Spirit AeroSystems. “We believe this progress demonstrates that, with the right customer support, we are able to meet current demands while also investing for future production rate increases.”
Boeing is in the process of acquiring its Wichita-based former subsidiary in a deal expected to close this year.
Spirit Aero reported free cash flow of US$91 million during the quarter, compared with US$42 million a year earlier. Revenue declined by 9% to US$1.65 billion during the quarter.
