Company: SPR
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037839
Chunk: 69

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 events, including those identified in Item 1A. “Risk Factors” of the 2024 Form 10-K. The risk particularly applies to products such as the B787, A220, and A350, which are in forward loss positions.During the second quarter ended July 3, 2025, the Company recognized unfavorable changes in estimates of $239.5, which included net forward loss charges of $219.4, and unfavorable cumulative catch-up adjustments related to periods prior to the 

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Table of ContentsSpirit AeroSystems Holdings, Inc. Notes to the Condensed Consolidated Financial Statements (unaudited)(U.S. Dollars in millions other than per share amounts)

second quarter of 2025 of $20.1. The forward losses in the second quarter were primarily driven by foreign exchange rates, current production performance and supply chain cost growth on the A350 and A220 programs, and production cost and supply chain growth, which includes the Company’s latest estimate for tariffs on the B787 program. The unfavorable cumulative catch-up adjustments primarily relate to increased production costs on the B737 program, which includes the Company’s latest estimate for tariffs.   During the second quarter ended June 27, 2024, the Company recognized unfavorable changes in estimates of $265.2, which included net forward loss charges of $213.5, and unfavorable cumulative catch-up adjustments related to periods prior to the second quarter of 2024 of $51.7. The forward losses in the quarter ended June 27, 2024 were primarily driven by current 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 supply chain growth on the B767 program. The forward losses on the B787 program include net incremental losses for anticipated performance obligations from 2026 to 2028 of $62.4 related to the production of units through line unit 1605. The unfavorable cumulative catch-up adjustments primarily related to increased production costs associated with changes implemented by Boeing in March 2024 to introduce a new product verification process in Wichita, KS on the B737 program and schedule changes and increased production costs on the B777 program. This change in business process for the B737 units delayed delivery acceptances and caused a buildup of undelivered units in Wichita, KS. Additionally, the Company maintained a higher cost profile for an expected increase in production rates that was delayed due to the FAA’s