Spirit AeroSystems’ Losses Widen as Cash Reserves Drop Amid Boeing Strike

Spirit AeroSystems reported mounting losses in its third-quarter earnings, with net losses reaching $217 million, more than double the $101 million loss from the same period last year. The Wichita-based aerospace supplier, heavily reliant on Boeing, has seen its finances strained due to a prolonged strike by Boeing factory workers, which has stalled production and disrupted cash flow. Spirit’s cash reserves dropped to $218 million after it fully drew down a $350 million bridge loan set up during Boeing’s planned acquisition of Spirit in June.

The company also received $425 million from Boeing through a memorandum of understanding (MOU) established in April, later increased by $40 million, though $40 million has since been repaid. Shares in Spirit fell 4% in after-hours trading following the earnings report.

To manage the cash strain, Spirit announced a 21-day furlough for 700 workers beginning October 28, with potential additional furloughs or layoffs if the Boeing strike persists. This action follows similar steps by other Boeing suppliers as they grapple with delays in Boeing’s production schedule. Boeing CEO Kelly Ortberg stated that there is “no change” to Boeing’s plan to acquire Spirit AeroSystems, with the acquisition set to close by mid-2025.

Meanwhile, Boeing workers are voting on a new wage proposal, though analysts caution that it may not end the work stoppage. Spirit’s backlog remains robust at $48 billion, reflecting ongoing projects with both Boeing and Airbus, which recently moved to take on Spirit’s European operations to alleviate financial pressure.