Spirit AeroSystems (SPR) AI Stock Analysis

• Market Cap: $4.35B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -2.91%
• EPS Growth: -109.95%
• Country: US
• Employees: 20,370
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): -4.25
• Shares Outstanding: 117,318,940
• 10 Day Avg. Volume: 1,037,831
• 30 Day Avg. Volume: 1,289,501
• PEG Ratio: -3.62
• Price to Book (P/B): -1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $32.82
• Price Target Upside: -11.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 37 Underperform
• Price Target: $34.00 ▼( -8.41% 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. (SPR) is one of the world's largest non-OEM designers and manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. Headquartered in Wichita, Kansas, Spirit AeroSystems specializes in manufacturing complex fuselages, pylons, nacelles, and wing components. The company operates in multiple sectors, including commercial aviation, defense, and space, leveraging advanced manufacturing processes and technologies to deliver high-quality, reliable, and innovative aerospace solutions.

How the Company Makes Money

Spirit AeroSystems generates revenue primarily through the design, manufacturing, and assembly of aerostructures for leading aircraft manufacturers like Boeing and Airbus. The company's revenue model is heavily reliant on long-term supply agreements and contracts with these major aerospace companies. Key revenue streams include the sale of fuselage systems, propulsion systems, and wing components. Spirit AeroSystems also benefits from aftermarket services, providing maintenance, repair, and overhaul operations. Additionally, the company has significant partnerships and collaborations with defense contractors, contributing to its earnings through the production of components for military aircraft. These strategic relationships, along with a global production network, enable Spirit AeroSystems to maintain a steady flow of income and sustain its market position.

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.

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

Spirit AeroSystems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.12
• 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 Positive. The current price of 37.12 is above the 20-day moving average (MA) of 36.68, above the 50-day MA of 34.86, and above the 200-day MA of 33.65, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPR.

Spirit AeroSystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	72 Outperform	$5.68B	27.93	11.61%	0.63%	4.50%	9.90%
KTOS	71 Outperform	$5.53B	285.11	1.45%	―	7.32%	―
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
HXL	65 Neutral	$4.13B	33.92	7.87%	1.21%	5.37%	29.15%
MRCY	59 Neutral	$2.82B	―	-4.45%	―	5.66%	52.71%
TGI	54 Neutral	$1.99B	284.07	46.74%	―	-8.59%	―
SPR	37 Underperform	$4.35B	―	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.