Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 28

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 28
---
4, the segment recorded unfavorable cumulative catch-up adjustments of $89.0 million and net forward loss charges of $918.9 million.

Defense & Space segment.  Defense & Space segment net revenues for the nine months ended October 2, 2025 were $831.1 million, an increase of $124.6 million, or 18%, compared to the same period in the prior year. The increase in revenues was primarily driven by higher production on the Sikorsky CH-53K as well as increased revenue on P-8 units under the Boeing B737 program, the contracts for which include units produced for the Boeing P-8 program that are accounted for in the Defense & Space segment. 

Defense & Space segment operating margins were (4%) for the nine months ended October 2, 2025, compared to 14% for the same period in the prior year. The decrease in margin, compared to the same period the prior year, was primarily driven by forward losses recorded on the P-8, KC-46 Tanker and KC-135 programs as well as higher excess capacity charges, partially offset by higher revenues and margin on Sikorsky CH-53K. For the nine months ended October 2, 2025, the Defense & Space segment includes $26.5 million of excess capacity production costs, compared to excess capacity production costs of $7.5 million for the same period in the prior year. For the nine months ended October 2, 2025, the segment recorded favorable cumulative catch-up adjustments of $0.7 million and net forward loss charges of $65.4 million. In comparison, for the nine months ended September 26, 2024, the segment recorded favorable cumulative catch-up adjustments of $10.9 million and net forward loss charges of $7.2 million.

Aftermarket segment.  Aftermarket segment net revenues for the nine months ended October 2, 2025 were $313.2 million, an increase of $16.7 million, or 6%, compared to the same period in the prior year. Aftermarket segment operating margins were 11% for the nine months ended October 2, 2025, compared to 15% for the same period in the prior year. The decrease in margin, compared to the same period in the prior year, was primarily driven by the impact of the mix of spares sales with lower margins in the current year.

Liquidity and Capital Resources 

We assess our liquidity in terms