Spirit AeroSystems (SPR) AI Stock Analysis

• Market Cap: $4.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -2.91%
• EPS Growth: -109.95%
• Country: US
• Employees: 20,370
• Sector: Industrials
• Sector Strength: 87
• Industry: Aerospace & Defense
• EPS (TTM): -4.25
• Shares Outstanding: 117,318,940
• 10 Day Avg. Volume: 1,047,147
• 30 Day Avg. Volume: 1,058,908
• PEG Ratio: -5.87
• Price to Book (P/B): -12.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.00
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: -4.58
• Enterprise Value/Ebitda: -1.48
• 1Y Price Target: $33.28
• Price Target Upside: -9.61% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 37 Underperform
• Price Target: $34.00 ▼(-7.66%Downside)

Spirit AeroSystems is currently in a precarious financial position characterized by negative profitability and high leverage. Despite modest positive technical trends, the valuation remains unattractive due to significant financial distress. However, recent corporate developments, including the Boeing merger and Airbus agreements, provide some optimism for future stability and growth. These factors result in a low stock score, reflecting caution for potential investors.

Positive Factors

Financial Viability

Recent agreed-upon advances from Boeing and Airbus limit the 'substantial doubt' of Spirit's financial viability.

Liquidity Support

Boeing and Airbus continue to support Spirit’s liquidity and have provided an additional $457 million in advances.

Negative Factors

Cash Flow Concerns

Spirit exited Q3 with $4,403 million in debt but only $218 million in cash, leading to a warning of 'substantial doubt about our ability to continue as a going concern.'

Financial Performance

Spirit Aerosystems reported Q3 adjusted EPS of -$3.03, significantly below the consensus of -$0.38.

Spirit AeroSystems Business Overview & Revenue Model

Company Description

Spirit AeroSystems Holdings, Inc. designs, engineers, manufactures, and markets commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, struts/pylons, nacelles, and related engine structural components; and wings and wing components, including flight control surfaces, as well as other structural parts. This segment primarily serves the aircraft original equipment manufacturers (OEMs) or engine OEMs of large commercial aircraft and/or business/regional jet programs. The Defense & Space segment provides fuselage, strut, nacelle, and wing aerostructures primarily for U.S. Government defense programs, including Boeing P-8, C40, and KC-46 Tanker. This segment also engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fixed wing aircraft aerostructures, missiles, and hypersonics works, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems, forward cockpit and cabin, and fuselage work on rotorcraft aerostructures. The Aftermarket segment offers spare parts and MRO services, repairs for flight control surfaces and nacelles, radome repairs, rotable assets, engineering services, advanced composite repairs, and other repair and overhaul services. Spirit AeroSystems Holdings, Inc. has a strategic partnership with Sierra Space to enhance access to commercial space economy of the future. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

How the Company Makes Money

Spirit AeroSystems generates revenue primarily through the design and manufacture of aerostructures for aircraft. The company's key revenue streams include sales of aerostructure components to major aerospace manufacturers such as Boeing and Airbus. Additionally, Spirit AeroSystems derives income from its defense and space segment by providing parts and services to military aerospace programs. The company also earns revenue from aftermarket services, which include maintenance, repair, and overhaul (MRO) of aircraft components. Significant partnerships with leading aerospace companies and long-term contracts are crucial factors contributing to Spirit AeroSystems' earnings, providing a stable and recurring revenue base.

Spirit AeroSystems Financial Statement Overview

Summary

Spirit AeroSystems is facing significant financial challenges with negative profitability, high leverage, and ongoing cash flow issues. The consistent financial losses and negative equity position highlight the critical need for strategic restructuring and cost control to stabilize the company's financial health. While the aerospace and defense industry can be volatile, the current trajectory suggests considerable risk for stakeholders.

Income Statement

The income statement reveals significant challenges for Spirit AeroSystems. The TTM (Trailing-Twelve-Months) data shows a negative gross profit margin and net profit margin due to substantial losses. The decline in revenue, coupled with increasing losses over time, highlights a worrying trend in operational efficiency and profitability. The EBIT and EBITDA margins are also negative, indicating deeper operational and financial challenges.

Balance Sheet

The balance sheet presents a precarious financial position. The company has a negative stockholders' equity, indicating more liabilities than assets, which is a significant red flag. The debt-to-equity ratio cannot be calculated due to negative equity, but the high level of debt relative to assets suggests a heavily leveraged position. The negative return on equity further emphasizes the company's inability to generate returns for shareholders.

Cash Flow

Cash flow analysis shows persistent negative operating and free cash flow, indicating ongoing difficulties in generating cash from operations. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting earnings into cash. However, there is a slight improvement in free cash flow growth rate, but overall, the cash flow situation remains concerning.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.14B	6.32B	6.05B	5.03B	3.95B	3.40B
	Gross Profit
-1.40B	-1.37B	206.20M	48.60M	-117.80M	-440.70M
	EBIT
-1.83B	-1.79B	-134.20M	-295.10M	-304.40M	-812.80M
	EBITDA
-1.60B	-1.48B	41.00M	41.80M	15.00M	-613.00M
	Net Income Common Stockholders
-2.14B	-2.14B	-616.20M	-544.60M	-538.00M	-865.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
228.20M	537.00M	823.50M	658.60M	1.48B	1.87B
	Total Assets
6.48B	6.76B	6.95B	6.67B	7.74B	8.38B
	Total Debt
5.39B	4.47B	4.18B	3.96B	3.88B	3.95B
	Net Debt
5.17B	3.94B	3.35B	3.30B	2.40B	2.07B
	Total Liabilities
9.67B	9.38B	7.45B	6.91B	7.29B	7.53B
	Stockholders Equity
-3.20B	-2.62B	-499.70M	-247.50M	448.30M	856.50M
Cash Flow		Free Cash Flow
-1.30B	-1.27B	-373.80M	-516.20M	-213.80M	-863.80M
	Operating Cash Flow
-1.12B	-1.12B	-225.80M	-394.60M	-63.20M	-744.90M
	Investing Cash Flow
-15.80M	-152.40M	-147.80M	-155.50M	-163.80M	-502.00M
	Financing Cash Flow
1.01B	994.50M	531.60M	-261.00M	-163.50M	769.50M

Spirit AeroSystems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPR, the sentiment is Neutral. The current price of 36.82 is below the 20-day moving average (MA) of 37.67, above the 50-day MA of 35.73, and above the 200-day MA of 33.88, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 29.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPR.

Spirit AeroSystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KTOS	74 Outperform	$6.33B	330.64	1.45%	―	7.32%	―
MOG.A	73 Outperform	$5.73B	28.14	11.61%	0.64%	4.50%	9.90%
HXL	69 Neutral	$4.40B	36.13	7.87%	1.24%	5.37%	29.15%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
MRCY	58 Neutral	$3.17B	―	-4.45%	―	5.66%	52.71%
TGI	54 Neutral	$2.01B	56.43	46.74%	―	-8.59%	―
SPR	37 Underperform	$4.32B	―	81.63%	―	-2.91%	-109.95%

Spirit AeroSystems Corporate Events

Spirit AeroSystems Receives IRS Ruling on Boeing Merger

On May 12, 2025, Spirit AeroSystems announced it received a private letter ruling from the IRS regarding the tax treatment of its proposed merger with Boeing and Sphere Acquisition Corp., initially agreed upon on June 30, 2024. The IRS ruling confirms that the merger qualifies as a ‘reorganization’ under the Internal Revenue Code, meaning no gain or loss will be recognized by Spirit shareholders exchanging their stock for Boeing stock, except for cash received in lieu of fractional shares. This decision is expected to positively impact the merger’s tax reporting, although shareholders are advised to consult their tax advisors for specific implications.

The most recent analyst rating on (SPR) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Spirit AeroSystems stock, see the SPR Stock Forecast page.

Spirit AeroSystems Enters Agreement with Airbus SE

On April 27, 2025, Spirit AeroSystems entered into a definitive agreement with Airbus SE to transfer ownership of certain assets and sites involved in the production of Airbus aerostructures. This divestiture is expected to close alongside Spirit’s acquisition by The Boeing Company, both subject to regulatory approvals and anticipated to finalize in the third quarter of 2025. The assets include facilities in North Carolina, France, Morocco, Scotland, Kansas, and Northern Ireland. Additionally, Spirit and Airbus have agreed on a memorandum that provides Spirit with $200 million in non-interest-bearing lines of credit to support Airbus programs. This agreement marks a significant milestone as Spirit progresses towards the Boeing acquisition, benefiting its stockholders and stakeholders.