Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 146

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 146
---
 in Note 4 Changes in Estimates to our condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report, the forward losses recorded in the third quarter of 2025 were primarily driven by schedule changes, increased supply chain cost and overall production cost growth on the B737 program, foreign exchange rates, current production performance and supply chain cost growth on the A350 and A220 programs, and production cost and supply chain cost growth, which includes the Company’s latest estimate for tariffs on the B787 program. In the third quarter of 2024, we recorded $25.7 million of unfavorable cumulative catch-up adjustments related to periods prior to the third quarter of 2024, and $217.2 million of net forward loss charges primarily driven by production performance, and supply chain cost growth on the A350 and A220 programs, additional labor and supply chain cost growth on the B787 program, and increased costs related to factory performance on the B767 program.  

56

SG&A and Research and Development.  Current period SG&A was lower than in the prior year period by $53.3 million, primarily due to the reversal of $45.5 million of accrued liabilities related to the favorable resolution of litigation with a former CEO in the third quarter of 2025 as well as reduced incentive compensation accruals, partially offset by certain employee retention-related expenditures outlined in the Merger Agreement of $2.3 million. Research and development expenses decreased for the three months ended October 2, 2025, as compared to the same period in the prior year primarily due to reduced project spending year-over-year.  

Restructuring Costs.  There were no restructuring costs recorded during the three months ended October 2, 2025. Restructuring costs of ($0.1) million were recorded during the three months ended September 26, 2024.

Operating (Loss) Income.  Operating loss for the three months ended October 2, 2025 was ($646.5) million, an increase of $296.4 million, compared to operating loss of ($350.1) million for the same period in the prior year. The variance reflects the reversal of the ($132.5) million loss that was recorded in the second quarter of 2025 for a valuation allowance on assets held for sale in relation to the Company’s Airbus Business due to the subsequent deterioration of the balance sheet in addition to the recording of a ($109.6) million loss for a valuation allowance on assets held for