Spirit AeroSystems reports $577m quarterly operating loss

Spirit AeroSystems reported a $577m fourth-quarter operating loss on Friday, swinging from $215m in operating income a year earlier, which was helped by a funding agreement with key customer Boeing. The major supplier to the U.S. planemaker reported $2.1b in net losses for 2024, and it "will need to obtain additional funding to sustain operations, as we expect to continue generating operating losses for the foreseeable future," the company said in its earnings announcement on Friday. Its two key customers -- Boeing and European rival Airbus -- already agreed in the fourth quarter to provide cash infusions: $350m in advance payments from Boeing and up to $107m in non-interest bearing credit from Airbus. In November, Spirit warned that there was "substantial doubt" it would be able to continue as a going concern. Boeing is in the process of acquiring its Wichita-based former subsidiary in a deal expected to close by mid-year, said President and CEO Pat Shanahan in a statement. Spirit Aero reported free cash flow, a metric closely watched by investors, of $91m during the quarter compared with $42m a year earlier. Revenue declined 9% to $1.65b during the quarter. Spirit, which produces aerostructure parts for both Boeing and Airbus, said its deliveries were up on models for both planemakers during the quarter. “Deliveries were up twofold on the 737, 37% on the A220 and 15% on the A350 compared to the prior quarter,” said CFO Irene Esteves in a statement. “We believe this progress demonstrates that, with the right customer support, we are able to meet current demands while also investing for future production rate increases.”<br/>