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Spirit AeroSystems Posts Higher Revenue and Increased Losses in Q3 2025

Spirit AeroSystems Posts Higher Revenue and Increased Losses in Q3 2025
Spirit AeroSystems Holdings reported a rise in revenue for the third quarter of 2025, driven by increased production across its Boeing, Airbus, and Defence & Space programs. The company experienced a significant rebound in Boeing 737 deliveries following delays in 2024 caused by Boeing’s joint product verification process. At the end of the quarter, Spirit’s total backlog stood at approximately US$52 billion, underscoring strong demand across all Airbus and Boeing platforms.
Financial Performance and Operating Challenges
Despite the revenue growth, Spirit AeroSystems recorded a wider operating loss for the quarter. The company attributed this primarily to higher estimate changes and reduced program margins on Boeing contracts. These negative impacts were partially offset by lower excess capacity charges and a US$48 million reversal of accrued liabilities after resolving litigation with a former CEO.
The quarter’s total estimate changes included forward losses of US$585 million and unfavorable cumulative adjustments of US$14 million. These were largely driven by escalating production and supply chain costs on key programs such as the Boeing 737, 787, and Airbus A220 and A350. Excess capacity costs declined to US$55 million, down from US$70 million in the same period last year.
Earnings per share (EPS) for the quarter were reported at US$(6.16), compared with US$(4.07) in the third quarter of 2024. Adjusted EPS, which excludes the deferred tax asset valuation allowance, stood at US$(4.87), versus US$(3.03) a year earlier. Nevertheless, the company demonstrated improved cash flow, with both operating and free cash flow usage better than in 2024. This improvement was supported by stronger Boeing 737 deliveries and favorable working capital timing. Spirit concluded the quarter with a cash balance of US$299 million, reflecting steady liquidity and ongoing recovery from prior production challenges.
Industry Implications and Outlook
The mixed financial results highlight persistent challenges for Spirit AeroSystems. The widening losses despite higher revenue may raise concerns among investors and increase pressure on the company to enhance profitability. Within the broader aerospace sector, competitors might respond by intensifying cost-cutting efforts or seeking strategic partnerships to safeguard market share. Spirit is likely to face increased scrutiny over its operational efficiency and strategic direction as it strives to improve financial performance amid a competitive and evolving market environment.

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