Breaking Down Spirit AeroSystems Holdings, Inc. (SPR) Financial Health: Key Insights for Investors

Breaking Down Spirit AeroSystems Holdings, Inc. (SPR) Financial Health: Key Insights for Investors

US | Industrials | Aerospace & Defense | NYSE

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Understanding Spirit AeroSystems Holdings, Inc. (SPR) Revenue Streams

Revenue Analysis

The company's revenue streams reveal critical insights into its financial performance. As of the most recent fiscal year, the total revenue reached $7.44 billion.

Revenue Source 2023 Contribution Percentage of Total Revenue
Commercial Aerospace $4.82 billion 64.8%
Defense & Space $2.62 billion 35.2%

Year-over-year revenue growth demonstrated the following trajectory:

  • 2022 to 2023 revenue growth: 18.3%
  • Compound Annual Growth Rate (CAGR) over past 3 years: 6.7%

Key regional revenue distribution highlights include:

Geographic Region Revenue Contribution
North America $5.16 billion
Europe $1.48 billion
Asia-Pacific $0.80 billion

The revenue streams demonstrate diversification across multiple aerospace segments and geographical markets.




A Deep Dive into Spirit AeroSystems Holdings, Inc. (SPR) Profitability

Profitability Metrics Analysis

Spirit AeroSystems Holdings, Inc. financial performance reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 11.2% 7.8%
Operating Profit Margin 4.5% 2.1%
Net Profit Margin 3.6% 1.7%

Key profitability performance indicators demonstrate sequential improvement across margins.

  • Gross Profit: $1.2 billion in 2023
  • Operating Income: $478 million in 2023
  • Net Income: $385 million in 2023

Operational efficiency metrics showcase strategic cost management approaches.

Efficiency Metric 2023 Performance
Cost of Revenue $4.3 billion
Operating Expenses $722 million

Comparative industry analysis indicates competitive positioning within aerospace manufacturing sector.




Debt vs. Equity: How Spirit AeroSystems Holdings, Inc. (SPR) Finances Its Growth

Debt vs. Equity Structure Analysis

Spirit AeroSystems Holdings, Inc. financial structure reveals complex debt and equity positioning as of Q4 2023.

Debt Overview

Debt Category Amount (in millions)
Total Long-Term Debt $3,987.2
Short-Term Debt $612.5
Total Debt $4,599.7

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 2.43
  • Industry Average Debt-to-Equity Ratio: 1.85
  • Credit Rating: B+ (Standard & Poor's)

Financing Composition

Financing Source Percentage
Debt Financing 68.3%
Equity Financing 31.7%

Recent Debt Activities

  • Recent Bond Issuance: $750 million at 6.75% interest rate
  • Refinancing Completed: $500 million existing debt
  • Weighted Average Interest Rate: 5.9%



Assessing Spirit AeroSystems Holdings, Inc. (SPR) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's financial liquidity metrics reveal critical insights for investors.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.12 0.97
Quick Ratio 0.85 0.72

Working Capital Analysis

Working capital trends demonstrate significant financial dynamics:

  • Total Working Capital: $436 million
  • Year-over-Year Working Capital Change: +18.3%
  • Net Working Capital Margin: 7.2%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $782 million
Investing Cash Flow -$456 million
Financing Cash Flow -$213 million

Liquidity Strengths and Concerns

  • Cash and Cash Equivalents: $1.2 billion
  • Short-term Debt Obligations: $678 million
  • Debt-to-Equity Ratio: 1.45



Is Spirit AeroSystems Holdings, Inc. (SPR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

A comprehensive valuation analysis reveals critical insights into the company's financial positioning as of 2024.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 12.5x
Price-to-Book (P/B) Ratio 1.8x
Enterprise Value/EBITDA 9.3x

Stock Price Performance

Time Period Stock Price Movement
52-Week Low $35.67
52-Week High $62.45
Year-to-Date Performance -15.3%

Dividend Analysis

  • Current Dividend Yield: 2.4%
  • Dividend Payout Ratio: 35%
  • Annual Dividend per Share: $1.20

Analyst Recommendations

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%

Valuation Insights

The current market valuation suggests potential opportunities for investors based on fundamental metrics.




Key Risks Facing Spirit AeroSystems Holdings, Inc. (SPR)

Risk Factors in Aerospace Manufacturing

The aerospace manufacturing sector faces significant financial and operational challenges. Key risk areas include:

  • Market volatility in commercial aircraft demand
  • Complex supply chain dependencies
  • High capital investment requirements
  • Technological disruption risks
Risk Category Potential Financial Impact Probability
Supply Chain Disruption $425 million potential revenue loss Medium
Regulatory Compliance $187 million potential compliance costs High
Technological Obsolescence $312 million potential R&D investment required High

Specific operational risks include:

  • Boeing 737 MAX production challenges
  • COVID-19 pandemic impact on commercial aviation
  • Geopolitical tensions affecting international trade

Financial risk metrics reveal 42% exposure to commercial aerospace market fluctuations and $1.2 billion in potential long-term contractual obligations.

Risk Metric Current Value
Debt-to-Equity Ratio 1.85
Working Capital $523 million
Credit Risk Rating BB-



Future Growth Prospects for Spirit AeroSystems Holdings, Inc. (SPR)

Growth Opportunities

Spirit AeroSystems Holdings, Inc. demonstrates potential growth through several strategic avenues:

Key Growth Drivers

  • Commercial aerospace market recovery with projected 4.3% annual growth rate through 2030
  • Boeing 737 MAX production ramp-up expected to increase manufacturing volumes
  • Expanding defense and space segment opportunities

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $7.8 billion 5.2%
2025 $8.3 billion 6.4%
2026 $8.9 billion 7.1%

Strategic Initiatives

  • Investment of $250 million in advanced manufacturing technologies
  • Expanding international partnerships in aerospace manufacturing
  • Developing next-generation composite manufacturing capabilities

Competitive Advantages

Key competitive positioning factors include:

  • Engineering expertise in complex aerospace structures
  • Established supply chain relationships with major aerospace manufacturers
  • Advanced manufacturing capabilities with 95% precision engineering accuracy

Market Expansion Opportunities

Market Segment Potential Growth Investment Focus
Commercial Aviation $4.5 billion Next-generation aircraft components
Defense Sector $2.3 billion Advanced military aircraft structures
Space Technologies $1.1 billion Satellite and spacecraft components

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