Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 20

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 20
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 segment.  Commercial segment net revenues for the three months ended October 2, 2025 were $1,170.1 million, an increase of $30.3 million, or 3%, compared to the same period in the prior year. The increase in revenues was primarily driven by increased production on Airbus programs, partially offset by reduced regional jet programs.   

Commercial segment operating margins were (52%) for the three months ended October 2, 2025, compared to (26%) for the same period in the prior year. The decrease in margin for the three months ended October 2, 2025, as compared to the prior year period, was primarily due to higher forward loss charges and lower margins for the Boeing programs, partially offset by lower cumulative catch-up adjustment and excess capacity charges. In the third quarter of 2025, the segment recorded unfavorable cumulative catch-up adjustments of $10.5 million and net forward loss charges of $577.7 million. In comparison, during the third quarter of 2024, the segment recorded unfavorable cumulative catch-up adjustments of $37.5 million and net 

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forward loss charges of $212.9 million. For the three months ended October 2, 2025, the Commercial segment included $43.1 million of excess capacity production costs compared with excess capacity costs of $65.8 million for the same period in the prior year.

Defense & Space segment.  Defense & Space segment net revenues for the three months ended October 2, 2025 were $304.1 million, an increase of $72.8 million, or 31%, 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 the 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 (5%) for the three months ended October 2, 2025, compared to 19% 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 P-8 programs as well as higher excess capacity costs. For the three months ended October 2, 2025 the Defense & Space segment included $12.1 million of excess capacity production costs compared