Spirit AeroSystems announced on Monday that it anticipates quarterly revenue to exceed expectations, thanks to the renewed production activity at Boeing, its largest client. This news has nudged the company’s shares upward by about 1% in premarket trading.
In the last quarter, Spirit saw a roughly 15% increase in its deliveries, primarily fueled by higher shipments of Boeing 737 and Airbus A320 parts. For those unfamiliar, a “shipset” comprises the sets of structural fuselage components crafted or supplied for a single aircraft.
Just last month, Boeing revealed strides in ramping up airplane production following the conclusion of a debilitating strike that had stalled the assembly of most of its aircraft. This positive development has evidently had a favorable impact on Spirit’s operations.
For the quarter ending on December 31, 2024, Spirit projects its revenues will hit $1.66 billion, surpassing analysts’ average predictions of $1.61 billion. Despite the revenue boost, the Wichita, Kansas-based firm is bracing for a $413 million loss. This setback is attributed largely to increased labor and raw material costs that persistently challenge the aerospace supply chain. Last year, the company had reported a profit of $291 million.
Furthermore, Spirit has reaffirmed its expectation of disclosing a “going concern” note in its upcoming annual report. Back in November, the company flagged there was “substantial doubt” regarding its ability to sustain operations in the long run.
This report was compiled by Utkarsh Shetti from Bengaluru, with editorial support from Vijay Kishore.
