Spirit AeroSystems says deliveries to Boeing have been delayed

As of March 1, 2024, Spirit (SPR) and Boeing (BA) have performed joint product verification to ensure conformity prior to transportation to Renton final assembly. Consequently, Spirit’s deliveries to Boeing have been delayed and undelivered units have been built-up in Wichita, Kansas, resulting in higher levels of inventory and contract assets and lower operational cash flows. During late 2023, the company prepared for expected increases in production rates which have now been delayed. Spirit’s current Boeing 737 production rate is approximately 31 aircraft per month, which the company anticipates remaining at through the end of this year. Spirit’s ability to align factory costs, which include both internal and supply chain related spending, and to react to sudden changes in production rates will have a material impact on results of operations and cash flows throughout 2024.