Spirit AeroSystems Reports Revenue Growth Amid Widening Q3 Losses and Profitability Challenges

Spirit AeroSystems Holdings reported higher revenue in the third quarter of 2025, driven by increased production and deliveries across Boeing and Airbus programs, including a significant rise in Boeing 737 output. Despite this revenue growth of 8.2% year-over-year to $1.59 billion and a robust backlog of approximately $52 billion, the company reported deeper operating losses, with a non-GAAP EPS of -$4.87, missing estimates by a wide margin. Losses have been compounding at an annual rate of 32.5% over the past five years, with no improvement in net profit margins, raising concerns about the company's path to sustained profitability. Nonetheless, management projects strong future growth, with revenue expected to increase by 14.2% annually and earnings per share forecasted to jump by over 88% yearly, anticipating a return to profitability within three years. The company trades at a steep discount relative to peers, with a price-to-sales ratio of 0.7x, reflecting investor caution amid ongoing financial and balance sheet risks, including negative equity. Overall, investors face a risk-reward dilemma balancing promising growth forecasts against persistent losses and operational challenges.