Company: SPR
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001628280-25-009088
Chunk: 52

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 52
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 in the funding requirements for Shorts Pension could result in the imposition of additional financial contributions to the Shorts Pension and, if such required contributions are significant, could have a material adverse effect on Shorts or our business, financial condition, and results of operations.

Risks Related to our Debt, Liquidity, Financial Estimates and Taxes 

We have incurred significant operating losses in the last few years and have identified conditions or events that raise substantial doubt about our ability to continue as a going concern.

As described more fully in Note 2, Basis of Presentation, of the Consolidated Financial Statements included herein, since 2020, the Company has incurred significant operating losses. In particular, the Company has incurred net losses of $2,139.8 million, $616.2 million, $545.7 million, and $540.8 million, for the years ended December 31, 2024, 2023, 2022, and 2021, respectively.

The Company’s liquidity has been impacted by, among other things, higher levels of inventory and contract assets, lower operational cash flows due to a decrease in expected deliveries to Boeing, higher factory costs to maintain rate readiness, Boeing no longer allowing for traveled work on the B737 fuselage to its factories, the strike by Boeing employees, and the limitations on Boeing increasing production rates. On October 18, 2024, the Company announced a 21-day furlough, effective October 28, 2024, for approximately 700 Company employees working on the B767 and B777 programs in response to the strike by Boeing employees, as the Company has reached maximum storage capacity on the B767 and B777 programs.

As of December 31, 2024, management has developed a plan designed to improve liquidity in response to the developments described above. These plans are dependent on many factors, including, among other things, the outcomes of our active discussions related to the timing or amounts of repayment for certain customer advances and achieving forecasted B737 deliveries. Management also is evaluating additional strategies intended to improve liquidity to support operations, including, 

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but not limited to, additional customer advances and restructuring of operations with the aim of increasing efficiency and decreasing expenses, which may include layoffs or additional furloughs.  

There can be no assurance with respect to the outcomes of such discussions or that these plans or strategies will sufficiently improve the Company’s liquidity needs to enable continuation of operations for at least the next twelve months. Accordingly, these conditions and events raise substantial doubt about the Company’s