Spirit AeroSystems Holdings Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Spirit AeroSystems Holdings, Inc. Reports Second Quarter 2024 Financial Results
Spirit AeroSystems Holdings, Inc. (NYSE: SPR) reported its financial results for the second quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 Actual | Q2 2023 Actual | Consensus Estimate |
|---|---|---|---|
| Revenue | $1.5B | N/A | $1.59B |
| EPS | $(3.56) | $(1.96) | $(0.90) |
| Adjusted EPS | $(2.73) | $(1.46) | N/A |
| Free Cash Flow Usage | $(597M) | N/A | N/A |
Interpretation : Despite an increase in revenue from the previous year, Spirit AeroSystems reported a significant net loss for Q2 2024, with EPS of $(3.56) and adjusted EPS of $(2.73), both far below Wall Street consensus estimates. The substantial EPS loss was driven by higher unfavorable changes in estimates and significant forward losses across various programs.
Segment Revenue Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | Commentary |
|---|---|---|---|
| Commercial | Increased | N/A | Increased production across most programs except Boeing 737 |
| Defense & Space | Increased | N/A | Higher activity on the Sikorsky CH-53K program |
| Aftermarket | Increased | N/A | Higher spare part sales |
Interpretation : The Commercial segment saw increased revenue due to higher production across most programs, although this was partially offset by lower production volume on the Boeing 737 program. The Defense & Space segment benefitted from increased activity on the Sikorsky CH-53K program, while the Aftermarket segment experienced a rise in revenue due to higher spare part sales.
Operational Data
| Key Operational Data | Q2 2024 |
|---|---|
| Boeing 737 Fuselage Deliveries | 27 |
| Production Rate | 31 per month |
Comments from Company Officers
Pat Shanahan, President and CEO, praised the dedication and teamwork of the employees, focusing on the improvements in safety, compliance, and quality. Irene Esteves, CFO, mentioned the negative impact of delivery delays due to the product verification process but emphasized ongoing efforts to institutionalize this process and improve quality.
Dividends and Share Repurchase Programs
There were no mentions of dividends or new share repurchase programs in the earnings release.
Forward Guidance
Given the pending merger with Boeing, Spirit AeroSystems has ceased providing forward guidance.
Stock Price Movement
Post-earnings release, Spirit AeroSystems' stock saw a decline of approximately -2.24%.
In summary, while Spirit AeroSystems showed revenue growth, significant losses and operational challenges due to delivery delays and higher production costs impacted overall financial performance. The anticipated merger with Boeing remains a critical factor in the company's future guidance and operational strategy.
