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 ai...
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. A portion of the company’s defense business is classified by the U.S. Government and cannot be specifically described; the company is a critical partner to its commercial and defense customers due to the broad range of products and services the company supplies to them across the product lifecycle and its leading design and manufacturing capabilities using both metallic and composite materials.
Segments and Products
The company operates through three 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 66% of Commercial segment net revenues came from the company’s contracts with Boeing for the twelve months ended December 31, 2024. Approximately 27% of Commercial segment net revenues came from the company’s contracts with Airbus for the twelve months ended December 31, 2024. A material portion of Defense & Space segment revenue is subject to renegotiation of profits or termination of contracts or subcontracts at the election of the U.S. Government. A substantial portion of the company’s Defense & Space segment revenues are represented by defense business that is classified by the U.S. Government and cannot be specifically described. A significant portion of the company’s Defense & Space segment net revenues came from its contracts with two individual customers for the twelve months ended December 31, 2024. Approximately 54% of Aftermarket segment net revenues came from the company’s contracts with an individual customer for the twelve months ended December 31, 2024.
Engineering
The company is an industry leader in aerospace engineering with access to talent across the globe. The purpose of the engineering organization is to provide support for new and ongoing designs, technology innovation, research and development for customer advancements, and production-related process improvements. The company possess a broad base of engineering skills for design, analysis, test, certification, tooling, and support of major fuselage, wing, and propulsion assemblies using both metallic and composite materials. In addition, the company’s regulatory certification expertise helps ensure associated designs and design changes are compliant with applicable regulations.
The company’s industry-leading engineering capabilities are key strategic factors differentiating it from the company’s competitors across its Commercial, Defense & Space, and Aftermarket divisions.
Spirit AeroSystems Aftermarket Solutions (‘SAAS’)
Through SAAS, the company provides rotable assets, spare parts, repair solutions, and engineering services. The company’s inventory of rotable assets is available for lease, exchange, and purchase. Additionally, the company’s global repair stations are staffed with technicians specializing in advanced composite repair techniques. The company provides MRO services for both metallic and composite components, either on site or at certified MRO stations. The company is equipped with original production manufacturing tooling and specialize in service bulletin maintenance for its nacelle components.
MRO
Certified repair stations that provide complete on-site repair and overhaul; maintains global partnerships to support MRO services.
Rotable Assets
Maintain a pool of rotable assets for sale, exchange, and/or lease. Rotable assets refer to parts that can be used many times by repairing them.
Engineering Services
Engineering, tooling, and measurement services. On-call field service representatives.
Defense & Space Business
In addition to providing aerostructures for commercial aircraft, the company also designs, engineers and manufactures structural components for military aircraft. The company has been awarded a significant amount of work for Boeing’s P-8 and KC-46 Tanker. The Boeing P-8 and KC-46 Tanker are commercial aircraft modified for military use. Other military programs for which the company provides products and services are the forward cockpit and cabin for the Sikorsky CH-53K Helicopter and development work of the B-21 Raider. In 2024, the company continued to identify, pursue, and win funded contracts on classified military programs. The company has contracts on multiple funded military programs that are classified by the U.S. Government and cannot be specifically described. The business risks associated with classified contracts historically has not differed materially from those of the company’s other U.S. Government contracts. The company’s internal controls addressing the financial reporting of classified contracts are consistent with its internal controls for the company’s non-classified contracts.
Fabrication
Within the company’s Commercial segment, it offers customers a wide range of solutions including machining, skin and sheet metal fabrication, and chemical processing. These capabilities are utilized for both internal and external sourcing and include the following:
Machine Fabrication
5-axis machining capabilities: high-speed aluminum fabrication up to 23 feet, seat track machining, and extensive hard metal capabilities.
3- and 4-axis machining capabilities: range of hard metal capabilities, multi-spindle machines, and manufactured parts.
Sheet Metal Fabrication
Includes stretch and hydro forming, roll, hammer, profiling, gauge reduction of extrusions and aluminum heat treat, as well as subassemblies.
Chemical Processing
Includes a range of hard and soft metals with one of the largest automated lines in the industry.
Skin Fabrication
Include skin stretch forming up to 1,500 tons, laser scribe, trim and drill, and chemical milling.
Customers
The company is the sole-source supplier for nearly all the products it sells to Boeing and Airbus.
Boeing
The company is the largest independent supplier of aerostructures to Boeing and manufacture aerostructures for every Boeing commercial aircraft in production, including the majority of the airframe content for the Boeing B737, and multiple significant structural components of the Boeing B787. The company supplies these products through long-term supply agreements that cover the life of these programs, including any commercial derivative models.
Airbus
The company originally became a supplier to Airbus in April 2006 through the acquisition of BAE Aerostructures and subsequently won additional work packages with Airbus. The company’s business with Airbus increased substantially with the acquisition of Bombardier’s aerostructures assets in Belfast and Morocco on October 30, 2020. The company is one of the largest content suppliers of wing systems for the Airbus A320 family and a significant supplier for the Airbus A350 XWB. Under the company’s supply agreement with Airbus for the A320 and A330, it supplies products for the life of the aircraft program. For the A350 XWB program, it has long-term requirement contracts with Airbus. In addition, the company build the fully integrated wing for the A220 aircraft.
Other Customers
Other customers include Lockheed Martin, Northrop Grumman, Bombardier and Rolls-Royce.
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 continues to build a larger presence in the defense aerostructures market. 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.
Research and Development
The company’s research and development spend was $47.5 million for the year ended December 31, 2024.
History
Spirit AeroSystems Holdings, Inc. was founded in 1927. The company was incorporated in Delaware in 2005.
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
