Spirit AeroSystems said it will need funding to continue operations after reporting a net loss of $577 million in the fourth quarter of 2024, down from its $75 million net profit in the fourth quarter of 2023. Net losses for the year widened from $616 million in 2023 to $2.1bn in 2024.
“We will need to obtain additional funding to sustain operations,” Spirit said in its report, “as we expect to continue generating operating losses for the foreseeable future.”
The company reported an operating loss of $577 million in the quarter, swinging from its operating profit of $215 million a year prior. Operating losses widened from $134 million in 2023 to $1.8bn in 2024.
Spirit's net revenues were down 9% to $1.7bn in the quarter, though up 4% for the full year to $6.3bn. The quarterly drop was mostly driven by its commercial segment's revenues dropping 16.6% to $1.3bn. Defence & space revenues were up 31% to $268.7 million and aftermarket was up 30% to $117.5 million.
The losses in the quarter were attributed to the impact of the Boeing memorandum of agreement executed in October 2023 in which the two companies agreed to enhance production stability and quality. In addition, Spirit was impacted by the seven-week machinist strike at Boeing’s Portland and Seattle factories that took place between September and November 2024. Furthermore, the Federal Aviation Administration’s (FAA) 38 per month production cap on Boeing’s 737 MAX aircraft impacted Spirit’s performance. The company added that the
Boeing is set to close its acquisition of Spirit in the middle of this year.
“As we advance toward the anticipated close of the acquisition by Boeing in mid-2025, we continue to make meaningful progress on several key fronts,” said Spirit CEO and president Pat Shanahan. “We’ve made significant strides to improve operations, and our teams are working diligently to develop thoughtful transition plans designed to position us for long-term success.”
Spirit’s overall deliveries increased during the fourth quarter of the year, compared to the same period in 2023, including higher 737 deliveries. As a result of the higher 737 deliveries, the company’s cash from operations and free cash flow improved. Free cash flow improved to $91 million in the quarter, compared to $42 million a year prior, while cash from operations was up 20% to $137 million.
Shanahan commented: “Deliveries were up twofold on the 737, 37% on the A220 and 15% on the A350 compared to the prior quarter.”
Boeing agreed to provide Spirit with $350 million in advance payments from Boeing, as well as Airbus agreeing to provide a non-interest line of credit of up to $107 million. As of the end of the year, Boeing advanced $200 million and received $70 million from Airbus. The company’s cash balance was $537 million at the end of the quarter.
Spirit said its 2024 performance has resulted in “significant reductions in projected revenue and cash flows” throughout 2025. Due to the Boeing merger agreement, the company did not detail guidance.
“These developments include production and delivery process changes implemented by Boeing, lower than planned 737 production rates and the lack of price increases on Airbus programs,” Spirit read in its report. The company said management has developed a liquidity improvement plan and is currently evaluating additional strategies to improve its financial standing.
For the year, commercial revenues were up only 1% to $4.9bn. Defence & space was up 23.6% to $975.2 million and aftermarket was up 10.7% to $414 million.
As of the end of the year, the company had a backlog of $47bn. Total debt at the end of the year was $4.4bn. Total liabilities and equity was $6.8bn as of the end of the year.