Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 158

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 158
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 partially offset by increased production on Airbus programs. 

Commercial segment operating margins were (36%) for the nine months ended October 2, 2025, compared to (29%) 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 higher forward losses and lower margins for the Boeing programs, partially offset by lower cumulative catch-up adjustments and lower excess capacity production costs. For the nine months ended October 2, 2025, the Commercial segment includes $119.6 million of excess capacity production costs, compared with excess capacity production costs of $135.0 million and $0.7 million of restructuring costs for the same period in the prior year. For the nine months ended October 2, 2025, the segment recorded unfavorable cumulative catch-up adjustments of $25.3 million and net forward loss charges of $1,032.6 million. In comparison, for the nine months ended September 26, 2024, the segment recorded unfavorable cumulative catch-up adjustments of $89.0 million and net forward loss charges of $918.9 million.

Defense & Space segment.  Defense & Space segment net revenues for the nine months ended October 2, 2025 were $831.1 million, an increase of $124.6 million, or 18%, compared to the same period in the prior year. The increase in revenues was primarily driven by 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 were (4%) for the nine months ended October 2, 2025, compared to 14% for the same period in the prior year. The decrease in margin, compared to the same period the prior year, was primarily driven by forward losses recorded on the P-8, KC-46 Tanker and KC-135 programs as well as higher excess capacity charges, partially offset by higher revenues and margin on Sikorsky CH-53K. For the nine months ended October 2, 2025, the Defense & Space segment includes $26.5 million of excess capacity production costs, compared to excess capacity production costs of $7.5 million for the same period in the prior year. For the nine months ended October 2, 2025, the segment recorded