Company: SPR
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021582
Chunk: 17

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 17
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 76%, 17%, and 7%, respectively, of our net revenues for the three months ended April 3, 2025 and approximately 80%, 15%, and 6%, respectively, of our net revenues for the three months ended March 28, 2024.

Commercial segment.  Commercial segment net revenues for the three months ended April 3, 2025 were $1,161.6 million, a decrease of ($194.5) million, or (14%), compared to the same period in the prior year. The decrease in revenues was primarily driven by the decreased level of Boeing production in the current year partially offset by increased Airbus production in the current period.   

Commercial segment operating margins were (40%) for the three months ended April 3, 2025, compared to (36%) for the same period in the prior year. The decrease in margin for the three months ended April 3, 2025, as compared to the prior year period, was primarily due to lower production levels and margins for the Boeing programs partially offset by lower unfavorable changes in estimates recorded in the current period. In the first quarter of 2025, the segment recorded unfavorable cumulative 

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catch-up adjustments of $16.5 million and net forward loss charges of $243.1 million. In comparison, during the first quarter of 2024, the segment recorded unfavorable cumulative catch-up adjustments of $38.9 million and net forward loss charges of $493.8 million. For the three months ended April 3, 2025, the Commercial segment included $41.1 million of excess capacity production costs compared with excess capacity costs of $24.9 million for the same period in the prior year.

Defense & Space segment.  Defense & Space segment net revenues for the three months ended April 3, 2025 were $261.0 million, an increase of $10.2 million, or 4%, compared to the same period in the prior year. The variance from the prior year period includes the impact of additional revenues from higher activity on development programs, higher production on the Sikorsky CH-53K and progress on classified programs 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 decreased to (4%) for the three months ended April 3, 2025, compared to