Executive Summary

Q3 2025 was weak on profitability with outsized estimate charges: revenue was $1.59B (+8% y/y) but GAAP EPS was $(6.16) and adjusted EPS $(4.87), driven by $585M net forward losses, $14M unfavorable catch-ups, and $55M excess capacity costs; a $48M litigation accrual reversal partially offset the charges .
Results missed S&P Global consensus materially: revenue $1.59B vs $1.89B consensus and adjusted EPS $(4.87) vs $(0.71) consensus; both represent significant misses as estimate charges ballooned on 737/787/A220/A350 programs (values from S&P Global)* .
Liquidity remains a central risk; management reiterated “substantial doubt” about going concern and noted dependence on customer advances, divestitures, and Boeing merger timing; cash from operations improved y/y to $(187)M with FCF usage $(230)M and cash balance $299M at quarter-end .
Regulatory/m&A developments progressed: the European Commission approved Boeing’s acquisition of Spirit subject to divesting Airbus-supplying businesses to Airbus and the Malaysia site to CTRM; closing is expected in Q4 2025, contingent on divestitures and U.S. HSR second request completion .

What Went Well and What Went Wrong

What Went Well

Revenue grew 8% y/y on higher production activity and deliveries (especially 737 deliveries recovering after 2024 verification delays) .
Operating cash burn improved y/y: cash from operations $(187)M vs $(276)M and FCF $(230)M vs $(323)M in Q3’24, helped by working-capital timing tied to higher 737 deliveries .
Regulatory progress: EU approved Boeing-Spirit deal with required divestitures; additionally, Spirit signed a definitive agreement to sell the Subang, Malaysia facility to CTRM for $95.2M, marking a milestone toward transaction closing .

What Went Wrong

Profitability deteriorated sharply: operating loss margin was (40.8)% vs (23.8)% in Q3’24, driven by $585M forward losses and lower program margins on Boeing programs; cumulative catch-ups were unfavorable $14M .
Segment compression: Commercial segment operating margin fell to (52.4)% with $578M forward losses and $11M catch-ups; Defense & Space swung to a (5.2)% margin with losses and catch-ups on KC‑46 and P‑8; Aftermarket margin was flat .
Going concern remains a material uncertainty; management highlighted dependence on customer advances, asset sales, and merger timing to sustain operations .

Financial Results

Headline metrics across periods (oldest → newest):

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Billions)	$1.471	$1.522	$1.635	$1.585
GAAP EPS ($)	$(4.07)	$(5.21)	$(5.36)	$(6.16)
Adjusted EPS ($)	$(3.03)	$(4.25)	$(3.34)	$(4.87)
Operating Loss Margin (%)	(23.8)%	(32.0)%	(29.4)%	(40.8)%
Cash from Operations ($MM)	$(276)	$(420)	$(144)	$(187)
Free Cash Flow ($MM)	$(323)	$(474)	$(190)	$(230)
Cash Balance ($MM)	$537 (12/31/24)	$220 (4/3/25)	$370 (7/3/25)	$299 (10/2/25)
Total Debt ($MM)	$4,394 (12/31/24)	$4,363 (4/3/25)	$4,344 (7/3/25)	$4,339 (10/2/25)

Consensus vs. actual (Q3 2025):

Metric	Consensus	Actual
Revenue ($USD Billions)	$1.887*	$1.585
Adjusted EPS ($)	$(0.71)*	$(4.87)

Values retrieved from S&P Global.*

Change-in-estimates and cost headwinds (charges):

Metric ($MM)	Q1 2025	Q2 2025	Q3 2025
Net Forward Losses	$293	$219	$585
Unfavorable Cumulative Catch-ups	$8	$20	$14
Excess Capacity Costs	$47	$44	$55

Segment breakdown (Q3):

Segment	Revenue Q3 2024 ($MM)	Revenue Q3 2025 ($MM)	Op Margin Q3 2024	Op Margin Q3 2025
Commercial	$1,139.8	$1,170.1	(26.3)%	(52.4)%
Defense & Space	$231.3	$304.1	19.4%	(5.2)%
Aftermarket	$99.5	$111.2	8.7%	8.6%

KPIs – Shipset deliveries (selected):

Program / Total	Q3 2024	Q2 2025	Q3 2025
737	64	113	90
787	9	22	17
A320 Family	135	157	172
Total Boeing	88	152	126
Total Airbus	178	214	217
Total Shipsets	332	430	392

Backlog trajectory:

Period	Backlog ($B)
Q1 2025	~$48
Q2 2025	~$51
Q3 2025	~$52

Guidance Changes

Spirit is not providing guidance during the pendency of the Boeing merger; no earnings call was held with the release .

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance (revenue, margins, cash, segments)	FY 2025	Not provided	Not providing guidance during merger process	Suspended

Earnings Call Themes & Trends

No conference call was held due to the Merger Agreement; themes below reflect management’s disclosures in press releases/8‑K filings .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Supply chain and cost inflation	Forward losses driven by A220/A350/787; excess capacity costs; supply chain cost growth	Larger forward losses ($585M) across 737/787/A220/A350; excess capacity $55M	Deteriorating
Tariffs/macro	Tariffs cited impacting 787 in Q2	Tariffs referenced within cost growth drivers; cumulative catch-ups on 737/777 from higher production costs	Persistent headwind
737 production/deliveries	Q1: 127 shipsets; Q2: 113; deliveries higher y/y after 2024 verification delays	90 shipsets; overall deliveries up y/y; 737 significantly higher y/y vs 2024	Mixed QoQ, positive YoY
Liquidity/going concern	Substantial doubt noted; dependence on advances/divestitures/merger timing	Reiterated substantial doubt; cash $299M; need additional funding	Unchanged risk
Regulatory/legal (Merger)	HSR second request; Airbus divestiture plan noted	EU approval conditioned on divestitures to Airbus/CTRM; Q4’25 closing expected (subject to conditions)	Progressing
Litigation	None highlighted in Q1/Q2 as P&L positive	$48M reversal of accrued liabilities from favorable resolution with former CEO	One-time tailwind
Aftermarket	Modest growth; margin pressure in Q2	Double-digit revenue growth; margin consistent with Q3’24	Stable

Management Commentary

Liquidity/tone: “We will need to obtain additional funding to sustain operations, as we expect to continue generating operating losses for the foreseeable future… Accordingly, substantial doubt about the Company’s ability to continue as a going concern exists.” .
Merger progress: The European Commission approved the Boeing acquisition, conditional on divesting Airbus-supplying businesses to Airbus and the Malaysia site to CTRM .
Strategic milestone (CTRM sale): “This also marks a milestone in the ongoing acquisition of Spirit by Boeing.” — Irene Esteves, EVP & CFO, regarding the Subang sale to CTRM .
Backlog context: Backlog ended Q3 at ~$52B, spanning work packages across Airbus and Boeing platforms .

Q&A Highlights

No earnings conference call was held in conjunction with the Q3 2025 release due to the Merger Agreement; therefore, no Q&A or guidance clarifications were provided .

Estimates Context

Q3 2025 results missed S&P Global consensus: revenue $1.585B vs $1.887B consensus and adjusted EPS $(4.87) vs $(0.71) consensus (significant miss driven by large forward losses and catch-up charges across major programs)* .
Values retrieved from S&P Global.*

Where estimates may adjust: Analysts may reduce near-term margin and EPS estimates given continued program losses (737/787/A220/A350) and going-concern disclosures; revenue expectations may also drift lower absent price increases on Airbus programs and with Boeing rate uncertainty .

Key Takeaways for Investors

Profitability reset: Q3 featured unusually large estimate charges (net forward losses $585M), collapsing operating margin to (40.8)% despite y/y revenue growth—expect downward revisions to near-term EPS/margin models .
Liquidity overhang persists: management reiterates substantial doubt about going concern; near-term liquidity depends on advances, divestitures, and merger timing; quarter-end cash $299M vs total debt $4.339B .
M&A path advancing: EU approval with remedies and Subang sale agreement to CTRM de-risk regulatory path; baseline assumption remains Q4’25 close, but HSR second request introduces timeline risk .
Mixed production signals: 737 deliveries higher y/y post-2024 disruptions, but QoQ step-down in 737 shipsets and broad-based cost growth keep program margins under pressure .
Aftermarket resilience: double-digit revenue growth with steady margins offers some offset but is too small to counter commercial program losses .
No guidance, no call: absent quantitative outlook, catalysts center on regulatory milestones, divestiture closings, and any updates on Boeing/Airbus pricing or cost-sharing arrangements .

Appendix: Additional Detail

Drivers of Q3 miss vs consensus: primary factors were forward losses on 737/787/A220/A350 due to supply chain and production cost growth, unfavorable catch-ups on 737/777, and $55M excess capacity costs; offset by $48M litigation accrual reversal .
Program and segment diagnostics: Commercial segment margin compressed to (52.4)% on elevated estimate charges; Defense & Space margin fell to (5.2)% on KC‑46/P‑8 charges; Aftermarket margin held roughly flat .

Citations:

Q3 2025 8‑K/press release (Exhibit 99.1): revenue, EPS, adjusted EPS, cash, FCF, segments, shipsets, backlog, charges, going concern, merger timing .
Q2 2025 8‑K: prior-quarter revenue, EPS (GAAP/adjusted), FCF, shipsets, charges .
Q1 2025 8‑K: prior-quarter revenue, EPS (GAAP/adjusted), FCF, shipsets, charges .
CTRM sale press release: Subang transaction details and CFO quote .