Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 153

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 153
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 cost growth, which includes the Company’s latest estimate for tariffs on the B787 program, increased costs related to factory performance and supply chain cost growth, which includes our latest estimate for tariffs on the B767 program and supply chain cost estimates on the KC-135 program. In the nine months ended September 26, 2024, we recorded $78.1 million of unfavorable cumulative catch-up adjustments related to periods prior to the nine months ended September 26, 2024, and $926.1 million of net forward loss charges. The forward loss charges recorded in the nine months ended September 26, 2024 were primarily driven by a change in strategic pricing conversations with our customer, Airbus, incremental orders Airbus secured, production performance, and supply chain cost growth on the A350 and A220 programs, schedule changes, additional labor and supply chain cost growth on the B787 program, and increased costs related to factory performance and supply chain cost growth on the B767 program.

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SG&A and Research and Development.  SG&A expense was $19.3 million lower for the nine months ended October 2, 2025, compared to the same period in the prior year. The variance was driven by the reversal of $45.5 million of accrued liabilities related to the favorable resolution of litigation with a former CEO in the third quarter of 2025 as well as reduced incentive compensation accruals in the current year, partially offset by the $23.2 million impairment charge for customer relationship intangible assets related to Airbus recorded in the second quarter of 2025, increased purchased services for merger-related activities and certain employee retention-related expenditures outlined in the Merger Agreement of $8.7 million. Greater research and development activity drove research and development expense $1.6 million higher for the nine months ended October 2, 2025, compared to the same period in the prior year.

Restructuring Costs.  There were no restructuring costs recorded for the nine months ended October 2, 2025. Restructuring costs of $0.7 million were recorded during the nine months ended September 26, 2024, driven by a reduction in hourly production workforce due to high inventory levels.

Operating (Loss) Income.  Operating loss for the nine months ended October 2, 2025 was ($1,614.3) million, an increase of $405.3 million, compared to operating loss of ($1,209.0) million for the same period in the prior year. The