Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 14

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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 $1,470.6 $4,742.3 $4,665.3 

Changes in Estimates

During the quarter ended October 2, 2025, we recognized unfavorable changes in estimates of $599.6 million, which included net forward loss charges of $585.2 million, and unfavorable cumulative catch-up adjustments related to periods prior to the third quarter of 2025 of $14.4 million. The forward losses in the third quarter 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, and production cost and supply chain cost 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 cost on the B737 and B777 programs. As referenced above, we utilize a periodic forecasting process to assess the progress and performance of our programs. We may continue to experience forward losses in the future as a result of production schedule impacts from our customers, increases in costs related to persistent inflation, or other factors resulting in cost estimates higher than our original forecast. 

During the same period in the prior year, we recognized total unfavorable changes in estimates of $242.9 million, which included net forward loss charges of $217.2 million, and unfavorable cumulative catch-up adjustments related to periods prior to the third quarter of 2024 of $25.7 million. 

Three Months Ended October 2, 2025 as Compared to Three Months Ended September 26, 2024

Revenue.  Net revenue for the three months ended October 2, 2025 was $1,585.4 million, an increase of $114.8 million, or 7.8%, compared to net revenue of $1,470.6 million for the same period in the prior year. The increase in revenue was primarily driven by increased Boeing, Airbus and Defense & Space revenues. Approximately 83% and 78% of Spirit’s net revenues for the third quarter of 2025 and 2024, respectively, came from our two largest customers, Boeing and Airbus.

Total deliveries to Boeing increased to 126 shipsets during the third quarter of 2025, compared to 88 shipsets delivered in the same period of the prior year, primarily driven by higher deliveries of the B737. Total deliveries to Airbus increased to 217 shipsets during the