Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 27

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 27
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) million loss for a valuation allowance on assets held for sale in relation to the Company’s Airbus Business but reversed that charge in the third quarter of 2025 due to deterioration of the balance sheet. In the third quarter of 2025, the Company recorded a ($109.6) million loss for a valuation allowance on assets held for sale in relation to the Company’s Malaysia Business. These dispositions resulted in a net loss of $26.6 million reflected within (Gain) loss on dispositions of businesses, net in the Condensed Consolidated Statement of Operations for the nine months ended October 2, 2025. See Note 26 Dispositions to our condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report for additional information. 

Commercial segment, Defense & Space segment, and Aftermarket segment represented approximately 76%, 18%, and 7%, respectively, of our net revenues for the nine months ended October 2, 2025, and approximately 79%, 15%, and 6%, respectively, of our net revenues for the nine months ended September 26, 2024.

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Commercial segment.  Commercial segment net revenues for the nine months ended October 2, 2025 were $3,598.0 million, a decrease of $64.3 million, or (2%), compared to the same period in the prior year. The decrease in revenues was primarily driven by the effect of lower margins on increased Boeing production and lower production on regional jet programs, partially offset by increased production on Airbus programs. 

Commercial segment operating margins were (36%) for the nine months ended October 2, 2025, compared to (29%) for the same period in the prior year. The decrease in margin, compared to the same period in the prior year, was primarily driven by higher forward losses and lower margins for the Boeing programs, partially offset by lower cumulative catch-up adjustments and lower excess capacity production costs. For the nine months ended October 2, 2025, the Commercial segment includes $119.6 million of excess capacity production costs, compared with excess capacity production costs of $135.0 million and $0.7 million of restructuring costs for the same period in the prior year. For the nine months ended October 2, 2025, the segment recorded unfavorable cumulative catch-up adjustments of $25.3 million and net forward loss charges of $1,032.6 million. In comparison, for the nine months ended September 26, 202