WICHITA, KS – Spirit AeroSystems Holdings, Inc. (NYSE:SPR), a leading manufacturer of aircraft parts currently valued at $4 billion, has entered into significant amendments with The Boeing Company (NYSE:BA) regarding their repayment agreements. The modifications, disclosed in a recent 8-K filing with the SEC, outline revised schedules for the repayment of outstanding advances totaling $605 million. According to InvestingPro data, the company operates with a significant debt burden, with total debt reaching $5.14 billion as of the latest quarter.
Under the new terms agreed upon on Tuesday, Spirit will repay Boeing $425 million in six installments starting April 1, 2026, and concluding on September 1, 2026. Additionally, a separate agreement for $180 million will be repaid in four installments between October 1, 2026, and December 1, 2027.
These amendments adjust prior agreements from April 18, 2024, and April 28, 2023, respectively. Notably, if the merger agreement between Spirit, Boeing, and Sphere Acquisition Corp., dated June 30, 2024, is terminated according to its terms, the outstanding advances under both amended agreements will become due on April 1, 2026. InvestingPro analysis indicates the company is quickly burning through cash, with negative EBITDA of $745.6 million in the last twelve months.
Spirit AeroSystems, headquartered in Wichita, Kansas, operates under the jurisdiction of Delaware, with fiscal year-end on December 31. The company's common stock is traded on the New York Stock Exchange at $34.25, with InvestingPro's analysis suggesting the stock is currently overvalued. For deeper insights into Spirit AeroSystems' financial health and 8 additional exclusive ProTips, visit InvestingPro, where you'll find comprehensive Pro Research Reports covering what really matters for smarter investing decisions.
This financial maneuvering comes at a critical time for Spirit and Boeing, as the aerospace industry continues to navigate the complexities of production and supply chain management. The revised repayment plans offer a clearer financial pathway for Spirit AeroSystems as it continues its partnership with Boeing.
In other recent news, Spirit AeroSystems has finalized the sale of its subsidiary, Fiber Materials Inc., to Tex-Tech Industries, Inc. for $165 million. This transaction comes as the company faces significant debt challenges. Spirit AeroSystems' decision to sell Fiber Materials Inc. is part of its broader strategic efforts. The financial implications of the sale may be reflected in Spirit AeroSystems' future financial statements.
In addition, Spirit AeroSystems has secured a non-interest-bearing line of credit totaling $107 million from Airbus. This financial move is part of Spirit AeroSystems' efforts to strengthen its liquidity.
The company has also announced significant changes to executive compensation, tied to its impending merger with The Boeing Company. Furthermore, Spirit AeroSystems recently reported third-quarter revenue of $1.47 billion and a net loss of $4.07 per share. Lastly, the company has announced a temporary furlough affecting approximately 700 employees.
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