Q1 2024 Spirit AeroSystems Holdings Inc Earnings Call Transcript
Key Points
- Spirit AeroSystems Holdings Inc (SPR) reported a 19% increase in revenue for the quarter, primarily due to higher production on Commercial programs and increased Defense & Space revenues.
- The company has made significant improvements in quality, achieving a 15% improvement in the first quarter, with expectations of further improvements.
- Spirit AeroSystems Holdings Inc (SPR) has successfully implemented a new joint inspection process with Boeing, which has industrialized in 34 days, improving product conformity.
- The Defense and Aftermarket teams at Spirit AeroSystems Holdings Inc (SPR) continue to perform strongly, meeting operational and financial commitments.
- Spirit AeroSystems Holdings Inc (SPR) received a $425 million advance from Boeing to help manage cash flow amid production adjustments, demonstrating strong support from a key customer.
- Spirit AeroSystems Holdings Inc (SPR) faced disruptions due to changes in the Boeing 737 production process, leading to delayed deliveries and increased inventory levels.
- The company reported a significant increase in net forward losses, primarily driven by the A350 and A220 programs, reflecting challenges in reaching a commercial agreement with Airbus.
- Spirit AeroSystems Holdings Inc (SPR) experienced a decrease in operating margin compared to the same period in 2023, largely due to higher unfavorable changes in estimates.
- Free cash flow usage for the quarter was significantly higher than the previous year, primarily caused by disruptions to the 737 production and delivery delays.
- Spirit AeroSystems Holdings Inc (SPR) is facing challenges in aligning with higher production rates due to supply chain limitations and the need for additional capital investments.
Good morning, ladies and gentlemen, and welcome to the Spirit AeroSystems Holdings, Inc. First Quarter 2024 Earnings Conference Call. My name is Candice, and I will be your coordinator for today's call. (Operator Instructions) I would now like to turn this presentation over to Ryan Avey, Senior Director, Investor Relations and FP&A. Please proceed.
Thank you, and good morning, everyone. I'm Ryan Avey, and with me today are Spirit's President and Chief Executive Officer, Pat Shanahan; and Senior Vice President and Chief Financial Officer, Mark Suchinski. Before we begin, I need to remind you that any projections or goals we may include in our discussion today are likely to involve risks, including those detailed in our earnings release, in our SEC filings and in the forward-looking statement at the end of this web presentation.
In addition, we refer you to our earnings release and presentation for disclosures and reconciliation of non-GAAP measures we use when discussing our results. With that, I would like to turn the call over to Pat.
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