Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 150

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 150
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 the Company’s Airbus Business due to subsequent deterioration of the balance sheet. In the third quarter of 2025, the Company also recorded a ($109.6) million loss for a valuation allowance on assets held for sale in relation to the Company’s Malaysia Business, resulting in a net reversal of loss of $22.9 million reflected within (Gain) loss on dispositions of businesses, net in the Condensed Consolidated Statement of Operations for the three 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 74%, 19%, and 7%, respectively, of our net revenues for the three months ended October 2, 2025 and approximately 78%, 16%, and 7%, respectively, of our net revenues for the three months ended September 26, 2024.

Commercial segment.  Commercial segment net revenues for the three months ended October 2, 2025 were $1,170.1 million, an increase of $30.3 million, or 3%, compared to the same period in the prior year. The increase in revenues was primarily driven by increased production on Airbus programs, partially offset by reduced regional jet programs.   

Commercial segment operating margins were (52%) for the three months ended October 2, 2025, compared to (26%) for the same period in the prior year. The decrease in margin for the three months ended October 2, 2025, as compared to the prior year period, was primarily due to higher forward loss charges and lower margins for the Boeing programs, partially offset by lower cumulative catch-up adjustment and excess capacity charges. In the third quarter of 2025, the segment recorded unfavorable cumulative catch-up adjustments of $10.5 million and net forward loss charges of $577.7 million. In comparison, during the third quarter of 2024, the segment recorded unfavorable cumulative catch-up adjustments of $37.5 million and net 

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forward loss charges of $212.9 million. For the three months ended October 2, 2025, the Commercial segment included $43.1 million of excess capacity production costs compared with excess capacity costs of $65.8 million for the same period in the prior year.

Defense & Space segment.  Defense & Space segment net revenues for the three months ended October 2,