Company: SPR
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021582
Chunk: 115

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 115
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 in revenue was primarily driven by lower Boeing production partially offset by increased Airbus production and Defense and Space production. Approximately 80% and 83% of Spirit’s net revenues for the first quarter of 2025 and 2024, respectively, came from our two largest customers, Boeing and Airbus.

Total deliveries to Boeing increased to 145 shipsets during the first quarter of 2025, compared to 70 shipsets delivered in the same period of the prior year, primarily driven by higher deliveries of B737. Total deliveries to Airbus increased to 236 shipsets during the first quarter of 2025, compared to 191 shipsets delivered in the same period of the prior year, primarily driven by increased production across all programs. Deliveries for business/regional jet components increased to 48 shipsets delivered during the first quarter of 2025, compared to 46 shipsets delivered in the same period of the prior year. In total, deliveries increased to 429 shipsets during the first quarter of 2025, compared to 307 shipsets delivered in the same period of the prior year. 

Gross (Loss) Profit.  Gross loss was ($461.1) million for the three months ended April 3, 2025, compared to gross loss of ($435.5) million for the same period in the prior year. The increase in loss from the prior year period was primarily driven by lower production and program margins on Boeing programs, and higher excess capacity costs, partially offset by lower negative cumulative catch-up adjustments and lower forward losses, as detailed below. For the Boeing B737 program, production activity during the first quarter of 2024 was higher due to preparation for expected rate increases which were subsequently delayed in that same period. Additionally, in the first quarter of 2025, we updated our estimates related to a specific warranty issue involving parts affected by the titanium records and certifications that are alleged to have been counterfeited and established a specific warranty reserve of $115.5 million for the matter. In the first quarter of 2025, we recognized $46.7 million of excess capacity production costs driven by cost overruns and production schedule changes on B737 MAX and A220 programs, compared to excess capacity cost of $26.1 million in the same period of the prior year. In the first quarter of 2025, we recognized $7.7 million of unfavorable cumulative catch-up adjustments related to periods prior to the first quarter of 2025, and $293.4