Company: SPR
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037839
Chunk: 148

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 148
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 Boeing production partially offset by increased production on Airbus and regional jet programs.

Commercial segment operating margins were (29%) for the six months ended July 3, 2025, compared to (30%) for the same period in the prior year. The increase in margin, compared to the same period in the prior year, was primarily driven by lower cumulative catch-up adjustments and forward loss charges, partially offset by lower margins for the Boeing programs. For the six months ended July 3, 2025, the Commercial segment includes $76.5 million of excess capacity production costs, 

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compared with excess capacity production costs of $69.2 million and $0.8 million of restructuring costs for the same period in the prior year. For the six months ended July 3, 2025, the segment recorded unfavorable cumulative catch-up adjustments of $17.1 million and net forward loss charges of $454.9 million. In comparison, for the six months ended June 27, 2024, the segment recorded unfavorable cumulative catch-up adjustments of $71.9 million and net forward loss charges of $706.0 million.

Defense & Space segment.  Defense & Space segment net revenues for the six months ended July 3, 2025 were $527.0 million, an increase of $51.8 million, or 11%, compared to the same period in the prior year. The increase in revenues was primarily driven by higher production on the Sikorsky CH-53K as well as increased revenue on P-8 units under the Boeing B737 program, the contracts for which include units produced for the Boeing P-8 program that are accounted for in the Defense & Space segment. 

Defense & Space segment operating margins were (3%) for the six months ended July 3, 2025, compared to 11% for the same period in the prior year. The decrease in margin, compared to the same period the prior year, was primarily driven by forward losses recorded on the KC-46 Tanker and KC-135 programs and lower margins on P-8, partially offset by higher revenues and margin on Sikorsky CH-53K. For the six months ended July 3, 2025, the Defense & Space segment includes $14.4 million of excess capacity production costs, compared to excess capacity production costs of $3.2 million for the same period in the prior year. For the six months ended July 3, 2025, the segment recorded favorable cumulative catch-up