Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 22

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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 nine months ended October 2, 2025, compared to 975 shipsets delivered in the same period of the prior year.

Gross (Loss) Profit.  Gross loss was ($1,312.1) million for the nine months ended October 2, 2025, compared to gross loss of ($915.0) million for the same period in the prior year. The increase in loss over the same period in the prior year was primarily driven by higher forward loss charges and lower program margins on Boeing programs, as well as higher excess capacity charges partially offset by lower cumulative catch-up adjustments. In the nine months ended October 2, 2025, we recognized $146.1 million of excess capacity costs driven by cost overruns and production schedule changes on the B737 MAX and A220 programs, compared to excess capacity production costs of $142.5 million in the same period of the prior year. In the nine months ended October 2, 2025, the Company recorded $24.6 million of unfavorable cumulative catch-up adjustments related to periods prior to the nine months ended October 2, 2025, and $1,098.0 million of net forward loss charges. The forward losses recorded in the nine months ended October 2, 2025 were primarily driven by schedule changes, increased supply chain cost and overall production cost growth on the B737 program, foreign exchange rates, current production performance and supply chain cost growth on the A350 and A220 programs, production cost and supply chain 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