Spirit AeroSystems Rebounds With Q4 Topline Beat But Guidance Grounded Amid Boeing Woes

Spirit AeroSystems Holdings Inc SPR shares are trading higher after it reported fourth-quarter FY23 revenue growth of 37% Y/Y to $1.81 billion, beating the consensus of $1.74 billion. 

The revenue increase represents higher production deliveries on most Commercial programs and higher Defense and Space and Aftermarket revenue. It also included previously disclosed impacts from the Boeing Company BA Memorandum of Agreement executed in October 2023, including favorable pricing adjustments on the 787 program and reversing the potential claim related to the 737 vertical fin attach fittings. 

Overall deliveries increased to 398 shipsets during the quarter compared to 343 shipsets in the same period of 2022.

Adjusted EPS expanded to $0.48 from a loss of $(1.46) a year ago, missing the consensus of $0.87.

Spirit’s backlog at the end of the quarter was ~$49 billion, including work packages on all commercial platforms in the Airbus SE EADSY and Boeing backlog.

Sales by segments: Commercial $1.52 billion (+42.6% Y/Y), Defense & Space $205.3 million (+12.1% Y/Y), and Aftermarket $90.5 million (+24.1% Y/Y).

Operating profit stood at $198 million vs. a loss of $(139) million compared to last year, benefiting from the favorable impact of the Boeing MOA executed in October 2023.

Operating cash flow came in at $113 million vs. cash used in operations of $(27) million a year ago. The cash balance at the end of the quarter was $824 million.

Spirit stated that it would not provide guidance until further clarity on the timing of 737 MAX production rate increases from its customer related to FAA approval and ongoing price negotiations with Airbus.

Also Read: Spirit AeroSystems Announces Executive Shakeup, Realignment For Enhanced Operations

Price Action: SPR shares are up 4.46% at $27.90 on the last check Tuesday.

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