On November 1, 2023, Spirit AeroSystems Holdings Inc (SPR, Financial) released its third-quarter 2023 financial results. The company reported revenues of $1.4 billion, marking a 13% increase from the same period in 2022. However, the company also reported a net loss of $204 million, a significant increase from the $128 million loss reported in Q3 2022.
Financial Performance
The company's operating loss for the third quarter of 2023 was $133.7 million, compared to an operating income of $4.5 million in the same period of 2022. The change was primarily driven by higher changes in estimates and excess capacity costs recognized during the third quarter of 2023.
EPS for Q3 2023 was $(1.94), compared to $(1.22) in the same period of 2022. Adjusted EPS for Q3 2023 was $(1.42), which excludes the incremental deferred tax asset valuation allowance. In the same period of 2022, adjusted EPS was $(0.15), which excluded the incremental deferred tax asset valuation allowance and pension termination charges.
Key Developments
During the quarter, Spirit AeroSystems appointed Pat Shanahan as interim President and CEO. The company also executed a memorandum of agreement with Boeing, the impacts of which will be reflected in the fourth quarter financial results.
Segment Results
Commercial segment revenue in the third quarter of 2023 increased 10 percent from the same period of the prior year to $1.1 billion, primarily due to higher production across most programs. Defense & Space segment revenue in the third quarter of 2023 increased 27 percent from the same period of the prior year to $205.7 million, primarily due to increased activity on development programs and higher production on the KC-46 Tanker program in the current period.
Outlook
For the full year 2023, cash used in operations is expected to be between $150 and $200 million; full-year 2023 free cash flow is expected to be a usage between $275 and $325 million. This outlook reflects lower projected Boeing 737 deliveries of 345 to 360 units for the year.
Explore the complete 8-K earnings release (here) from Spirit AeroSystems Holdings Inc for further details.
