Spirit AeroSystems, a US manufacturer of aerostructures for commercial airplanes, has reported a drop in revenue for the first quarter of 2025 as compared to the same period in 2024, mainly due to reduced production on most Boeing programs, particularly the Boeing 737.
In its financial report on May 1, 2025, the company noted that this decrease was partially offset by higher production activity on Airbus programs during Q1 2025.
Spirit’s overall deliveries rose in Q1 of 2025 compared to the same period last year. Boeing total 737 deliveries were much higher due to delays from the joint product verification process with Boeing that started in Q1 of 2024. Spirit’s backlog was estimated to be around $48 billion at the end of Q1 2025.
The operating loss in Q1 2025 improved in comparison to Q1 2024, mainly due to smaller changes in estimates and an $80 million profit from selling Fiber Materials, although this was partially countered by a $116 million warranty reserve. The company claims to have “certain contractual rights related to recovery from suppliers and plans to aggressively pursue these.”
During this three-month period, the total change in estimates included net forward losses of $293 million. According to Spirit, the losses were primarily due to the Airbus A350, Airbus A220, and Boeing 787 programs, which accounted for $90 million, $86 million and $38 million respectively, caused by changes in schedule, production issues and rising supply chain costs.
Cash from operations and free cash flow fell in Q1 2025 compared to the same period in 2024, mainly due to the timing of working capital, though this was somewhat balanced by increased Boeing 737 deliveries. By the end of Q1 2025, the company’s cash balance stood at $220 million.
Additionally, Spirit AeroSystems mentioned that it has made significant deals with Boeing and Airbus. On June 30, 2024, the company agreed to merge with Boeing. Consequently, AeroSystems will become a fully owned subsidiary of Boeing by the third quarter of 2025.
On April 28, 2025, the company revealed a deal to transfer some production assets to Airbus and received $200 million in non-interest-bearing credit from the European manufacturer to support ongoing Airbus programs.
