Spirit AeroSystems Holdings Stock

Spirit AeroSystems Holdings, Inc. operates as a non-original equipment manufacturer (OEM) manufacturer of aerostructures, serving markets for commercial airplanes, military platforms and business/regional jets.

With expertise in aluminum and advanced composite manufacturing solutions, the company's core products include fuselages, integrated wings and wing components, pylons and nacelles. The company also serves the aftermarket for commercial and military platforms. In addition to commercial aircraft structures, the company designs, engineers, and manufactures structural components for military aircraft and other applications. The company is a critical partner to its commercial and defense customers due to the broad range of products and services it supplies to them across the product lifecycle and its leading design and manufacturing capabilities using both metallic and composite materials.

Operating Segments and Products

The company operates in three principal segments: Commercial, Defense & Space, and Aftermarket.

Commercial

The Commercial segment includes design and manufacturing of the following for commercial and business/regional jet programs:

The forward section of the fuselage, which houses the flight deck, passenger cabin, and cargo area;

The mid and rear fuselage sections;

Other structural components of the fuselage, including floor beams;

Nacelles (including thrust reversers) - aerodynamic structure surrounding engines;

Struts/pylons - structure that connects the engine to the wing;

Horizontal and vertical stabilizers;

Flaps and slats - flight control surfaces;

Wing structures - framework that consists mainly of spars, ribs, fixed leading edges, stringers, trailing edges, and flap track beams; and

Fully functional and tested wing systems.

Defense & Space

The Defense & Space segment includes design and manufacturing of the following, primarily for U.S. Government defense programs:

Fuselage, strut, nacelle, and wing aerostructures: Fabrication, bonding, assembly, testing tooling, processing, engineering analysis, and training;

Missiles and Hypersonics: Solid rocket motor throats and nozzles, re-entry vehicle thermal protections systems;

Rotorcraft aerostructures: Forward cockpit and cabin, fuselage; and

Classified programs.

Aftermarket

The Aftermarket segment includes development, production, and marketing of the following:

Maintenance, Repair and Overhaul (MRO) services related to Commercial and Defense & Space programs;

Fuselage, strut, nacelle, and wing aerostructures spare parts;

Repairs for flight control surfaces and nacelles;

Radome repairs;

Rotable assets trading and leasing;

Engineering services;

Advanced composite repair; and

Other MRO services.

The company's largest customer, Boeing, represents a substantial portion of its revenues in the Commercial segment. The company's second largest customer, Airbus, also represents a substantial portion of revenues in the Commercial segment. Approximately 70% of Commercial segment net revenues came from the company's contracts with Boeing for the twelve months ended December 31, 2023. Approximately 23% of Commercial segment net revenues came from the company's contracts with Airbus for the twelve months ended December 31, 2023. A substantial portion of the company's Defense & Space segment revenues are represented by defense business that is classified by the U.S. Government. A significant portion of the company's Defense & Space segment net revenues came from the company's contracts with two individual customers for the twelve months ended December 31, 2023. Approximately 47% of Aftermarket segment net revenues came from the company's contracts with an individual customer for the twelve months ended December 31, 2023.

Competition

In commercial aerostructures, the company's principal competitors among OEMs include Boeing and Airbus (including its wholly-owned subsidiaries Airbus Atlantic and Premium Aerotec GmbH). The company's principal competitors among non-OEM tier-1 aerostructures suppliers include Aernnova, GKN Aerospace, Kawasaki Heavy Industries, Inc., Mitsubishi Heavy Industries, Safran Nacelles, Sonaca, Airbus Atlantic, Airbus Aerostructures, Triumph Group, Inc. (Triumph), Leonardo, Turkish Aerospace Industries, Inc. (TAI), and Latecoere S.A.

The company's competition in defense aerostructures includes Boeing, Lockheed Martin, Northrop Grumman, Collins Aerospace, Leonardo, GKN, Triumph, BAE Systems, Albany Engineered Composites, Korea Aerospace Industries, and TAI.

Strategy

The company's strategy is to enter into long-term contracts with suppliers to secure competitive pricing.

Business Development

The company's core products include fuselages, struts/pylons, nacelles, and wing components, and it continues to focus on business growth through the application of core competencies as key strengths, including design for manufacturability, materials utilization expertise, targeted automation, advanced tooling and testing concepts, and determinate assembly to enable highly efficient production. The company invests in research and development and new technology to bring the most advanced techniques, manufacturing, and automation to its customers.

Research and Development

The company's research and development spend was $45.4 million for the year ended December 31, 2023.

History

Spirit AeroSystems Holdings, Inc. was founded in 1927. The company was incorporated in Delaware in 2005.