Company: SPR
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037839
Chunk: 141

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 141
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 as compared to the prior year period, was primarily due to lower excess capacity, cumulative catch-up adjustments and forward loss charges, partially offset by lower margins for the Boeing programs. In the second quarter of 2025, the segment recorded unfavorable cumulative catch-up adjustments of $10.7 million and net forward loss charges of $211.8 million. In comparison, during the second quarter of 2024, the segment recorded unfavorable cumulative catch-up adjustments of $48.8 million and net forward loss charges of 

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$212.2 million. For the three months ended July 3, 2025, the Commercial segment included $35.4 million of excess capacity production costs compared with excess capacity costs of $44.3 million for the same period in the prior year.

Defense & Space segment.  Defense & Space segment net revenues for the three months ended July 3, 2025 were $266.0 million, an increase of $41.6 million, or 19%, compared to the same period in the prior year. The variance from the prior year period includes the impact of 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 decreased to (3%) for the three months ended July 3, 2025, compared to 8% for the same period in the prior year. The decrease in margin over the prior year period was primarily due to higher unfavorable changes in estimates recorded on the KC-46 Tanker and strategic programs as well as higher excess capacity costs. For the three months ended July 3, 2025 the Defense & Space segment included $8.8 million of excess capacity production costs compared with excess capacity costs of $2.0 million for the same period in the prior year. The segment recorded unfavorable cumulative catch-up adjustments of $9.4 million for the three months ended July 3, 2025. The segment recorded net forward loss charges of $7.6 million for the three months ended July 3, 2025. In comparison, during the same period of the prior year, the segment recorded unfavorable cumulative catch-up adjustments of $2.9 million and net forward loss charges of $1.3 million.

Aftermarket segment.  Aftermarket segment net revenues for the three months ended July 3,