Company: SPR
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037839
Chunk: 149

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 149
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 adjustments of $2.2 million and net forward loss charges of $57.9 million. In comparison, for the six months ended June 27, 2024, the segment recorded unfavorable cumulative catch-up adjustments of $2.5 million and net forward loss charges of $2.9 million.

Aftermarket segment.  Aftermarket segment net revenues for the six months ended July 3, 2025 were $202.0 million, an increase of $5.0 million, or 3%, compared to the same period in the prior year. Aftermarket segment operating margins were 12% for the six months ended July 3, 2025, compared to 18% 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 of our ability to generate cash to fund our operating, investing, and financing activities. Our principal sources of liquidity are operating cash flows from continuing operations and borrowings to finance our business operations. Our operating cash flows from continuing operations have been adversely impacted by, among other things, the B737 MAX grounding, the COVID-19 pandemic, production rate changes for the B737 MAX program and other programs, the impact of inflation on labor and supply chain costs, supply chain disruptions, and labor shortages affecting our business. We expect those adverse impacts to continue for 2025 and beyond. For purposes of assessing our liquidity needs in this section, we have assumed that Boeing would not further reduce the B737 MAX production rate and that other customers generally would not further reduce their production rates. For risks that may affect that assumption, see Item 1A “Risk Factors.” in the 2024 Form 10-K.

These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) on a going concern basis, which assumes the Company will be able to continue as a going concern and contemplates the realization of assets and satisfaction of liabilities in the normal course of business. However, substantial doubt about the Company’s ability to continue as a going concern exists. We have incurred net losses of $1,243.9 million, $2,139.8 million, $616.2 million, and $545.7 million, for the six months ended July 3, 2025, and the years ended December 31