Spirit AeroSystems Holdings, Inc. (SPR)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $1.64B, up 9.6% YoY and up 7.4% QoQ, but missed Wall Street consensus by ~$177M (~9.8%); adjusted EPS was $(3.34) vs consensus $(1.25), a significant miss driven by forward losses, tariffs, and a $129.9M disposition loss . Estimates marked with * are from S&P Global.
• GAAP EPS was $(5.36) and operating loss margin was 29.4%, reflecting $219M net forward losses (A220 $100M, A350 $58M, 787 $38M), $20M unfavorable catch-ups, and $44M excess capacity costs .
• Liquidity improved QoQ on working capital timing with cash used in operations $(144)M vs $(420)M in Q1; quarter-end cash was $370M, but management reiterated “substantial doubt” about going concern absent additional funding/advances and pending transactions .
• Strategic updates: backlog increased to ~$51B; Spirit announced a $95.2M agreement to sell its Subang, Malaysia facility to CTRM (expected close Q4 2025) alongside ongoing Boeing merger and Airbus asset transfers; no guidance and no earnings call due to merger .

What Went Well and What Went Wrong

• What Went Well

  • Deliveries rebounded YoY: Boeing 737 shipsets rose to 113 vs 27 in Q2 2024, helping revenue growth and improved operating cash flows from working capital timing .
  • Backlog expanded to ~$51B, reflecting continued multiyear visibility across Airbus and Boeing platforms .
  • Strategic portfolio actions progressed: definitive agreement to sell Subang facility to CTRM for $95.2M, supporting Airbus/Boeing transaction close plans (“marks a milestone in the ongoing acquisition”) .

• What Went Wrong

  • Large estimate charges: $219M forward losses and $20M unfavorable catch-ups, with tariffs and supply chain cost growth impacting 787 and 737 programs; excess capacity costs were $44M .
  • Disposition loss: $129.9M loss on businesses related to the planned transfer of certain assets/sites to Airbus, materially widening the operating loss .
  • Liquidity and going-concern risk: management stated “substantial doubt” exists absent further advances, funding, and successful transaction timing; no guidance provided .

Financial Results

Segment Breakdown

KPIs

Vs Estimates (Q2 2025)

Values retrieved from S&P Global.

Guidance Changes

Earnings Call Themes & Trends

Note: No earnings call or transcript for Q2 2025 due to merger; themes reflect press releases and 8-Ks .

Management Commentary

• “We’ve made significant strides to improve operations… increase in both the quality and number of deliveries… with the right customer support, we are able to meet current demands while also investing for future production rate increases.” — Pat Shanahan (CEO) and Irene Esteves (CFO), Q4 2024 release .
• “Our agreement with CTRM for the acquisition of this important manufacturing facility ensures a strong future for this business… This also marks a milestone in the ongoing acquisition of Spirit by Boeing.” — Irene M. Esteves (CFO), CTRM press release .
• Q2 press materials emphasized that operating loss increased primarily due to Airbus-related dispositions ($133M loss), and estimate changes were driven by A220/A350/787 forward losses, 737 catch-ups and tariffs; excess capacity costs were $44M .

Q&A Highlights

• No earnings call or Q&A; the company did not hold a conference call due to the merger agreement. Full details are in the 10-Q and furnished press release .

Estimates Context

• Revenue missed S&P Global consensus by ~$177M (~9.8%); adjusted/normalized EPS missed by ~$2.09, reflecting heavier-than-anticipated estimate charges and a sizable disposition loss . Values retrieved from S&P Global.
• The consensus reflected normalized EPS (not GAAP); reported GAAP EPS of $(5.36) underscores non-GAAP adjustments (notably the deferred tax asset valuation allowance) .
• With continued forward losses and tariff effects on widebody programs, sell-side models likely need lower margin assumptions near-term, while backlog resilience may temper outer-year revenue trajectories .

Key Takeaways for Investors

• Revenue growth masked significant estimate charges and a disposition loss; the quarter was a clear miss vs S&P Global consensus on both top line and adjusted EPS, driven by A220/A350/787 losses, tariffs, and 737 catch-ups . Values retrieved from S&P Global.
• Liquidity remains the central risk: cash improved to $370M and operating cash outflow narrowed QoQ, but management’s “substantial doubt” going-concern language persists absent advances/funding and successful transaction execution .
• Backlog climbed to ~$51B, sustaining multi-year demand visibility despite near-term margin pressure and program-specific cost growth .
• Transaction path: Boeing merger now targeted for Q4 2025 and Airbus asset transfers progressing; Subang sale to CTRM adds discrete proceeds and strategic alignment to transaction sequencing .
• Segment mix: Commercial revenue improved and margin less negative QoQ; Defense & Space margins deteriorated; Aftermarket margins softened on mix and spares margin compression .
• Operational focus: Tariffs and supply chain cost growth are explicit drivers of widebody losses; monitoring tariff policy shifts and FX could be catalysts for estimate revisions .
• Actionable: Expect sell-side to cut near-term EPS/margin estimates; trading narrative likely hinges on regulatory/transaction milestones, liquidity developments (customer advances), and any evidence of cost normalization on A220/A350/787 .

Notes and Discrepancies

• Defense & Space cumulative catch-up in Q2 2025: the 8-K exhibit cites unfavorable $9M , while the press release body references favorable $9M . We anchor on the 8-K exhibit and flag the discrepancy.