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Spirit AeroSystems Reports Surprising Fourth-Quarter Profit

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Shares Remain Steady Despite Lack of Financial Guidance

Shares of Spirit AeroSystems Holdings Inc. (NYSE: SPR) remained relatively unchanged in premarket trading on Tuesday, following the aircraft-components maker’s surprising fourth-quarter profit announcement. However, the company also announced that it will not be providing financial guidance until it gains clarity on the timing of production rate increases for the 737 Max by its customer, Boeing Co. (NYSE: BA).

In a significant turn of events, Spirit AeroSystems swung to a net income of $58.7 million, or 52 cents per share, in comparison to a net loss of $243.1 million, or $2.32 per share, in the same period last year. This impressive shift was primarily due to a $205.6 million loss reversal resulting from an agreement reached with Boeing in October. The agreement focused on price adjustments for the Boeing 787 program and the potential claim related to the 737.

On an adjusted basis, earnings per share came in at 48 cents, surpassing the FactSet consensus for a per-share loss of 35 cents. Additionally, revenue soared by 37.3% to reach $1.81 billion, exceeding the FactSet consensus of $1.74 billion. This increase was driven by a remarkable 42.6% rise in commercial revenue and a solid 12.1% growth in defense and space revenue.

While Spirit AeroSystems has undeniably made impressive strides, its stock has faced challenges this year with a 16% decline thus far. This decline can be attributed to its involvement in the inflight blowout of a panel that led to the grounding of 737 Max 9 aircraft. Meanwhile, Boeing’s stock has also experienced a significant drop of 20.7% this year, while the broader S&P 500 has managed to gain 3.6%.

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