MRO & Manufacturing
Spirit AeroSystems Q3 2025 Revenue Up Amid Financial Concerns
Spirit AeroSystems reports higher Q3 revenue but faces operating losses and a “going concern” warning ahead of Boeing merger.
In the high-stakes world of aerospace manufacturing, quarterly reports are more than just numbers; they are a health check on a critical artery of the global supply chain. Spirit AeroSystems, a cornerstone in the production of aerostructures for giants like Boeing and Airbus, has released its third-quarter 2025 results. This report arrives at a pivotal moment, with the company navigating severe operational headwinds while simultaneously moving toward a planned acquisition by The Boeing Company. The latest figures present a complex and challenging picture for the manufacturer.
As we unpack the Q3 2025 report, a clear narrative emerges: one of contrast. On one hand, Spirit saw its revenues climb, driven by increased production across its key programs. On the other, this growth was completely overshadowed by widening operating losses, significant cash burn, and, most critically, a formal declaration of “substantial doubt” about its ability to continue as a going concern. This warning signals a precarious financial position that puts immense pressure on the company’s short-term strategy and highlights the urgency of its pending merger with Boeing.
This analysis will break down the core financial data, explore the drivers behind the revenue growth and profitability struggles, and examine the profound implications of the company’s viability warning. We will also delve into the status of the Boeing acquisition, a deal that now appears less like a strategic merger and more like a necessary lifeline for Spirit. The performance of its individual business segments, Commercial, Defense & Space, and Aftermarket, further illustrates the specific pressures and isolated bright spots within the company’s portfolio.
A surface-level glance at Spirit’s third-quarter results might suggest positive momentum. The company reported revenues of $1.6 billion, an increase compared to the same period in 2024. This top-line growth was fueled by higher production volumes across its major commercial and defense programs. Specifically, deliveries of the Boeing 737 fuselage, a flagship product for Spirit, saw a notable year-over-year increase. However, this was largely a recovery from delays in the previous year caused by a joint product verification process with Boeing, rather than purely organic growth.
The story beneath the revenue figure is far more troubling. Despite the increased production, Spirit’s operating loss widened significantly in the third quarter. The company posted a loss per share (EPS) of $(6.16), with an adjusted EPS of $(4.87). These losses were primarily driven by massive forward loss charges totaling $585 million on some of its most critical programs, including the Boeing 737 and 787, as well as the Airbus A220 and A350. These charges reflect the escalating costs in the Supply-Chain and ongoing production inefficiencies that are eating away at profitability.
The financial strain is further evidenced by the company’s cash flow. In Q3, Spirit used $187 million in cash from operations, resulting in a negative free cash flow of $230 million. This consistent cash burn has depleted its reserves, leaving a cash balance of just $299 million at the end of the quarter. This liquidity crunch is a central factor in the company’s current crisis, forcing it to seek additional funding to sustain its day-to-day operations while it continues to generate operating losses.
Adding to the pressure are excess capacity costs, which amounted to $55 million for the quarter. While the company did benefit from a one-time positive adjustment, reversing $48 million of accrued liabilities from resolved litigation with a former CEO, it was not nearly enough to offset the deep-seated operational losses. The company’s backlog, while robust at approximately $52 billion, offers little comfort when current production is unprofitable.
The third quarter was defined by net forward losses of $585 million, primarily linked to the Boeing 737, Boeing 787, Airbus A220, and Airbus A350 programs, stemming directly from supply chain and production cost growth.
A closer look at Spirit’s individual segments reveals that the challenges are widespread. The Commercial segment, its largest division, saw revenue increase due to higher production on Airbus programs. However, its operating margin fell due to the aforementioned charges for changes in estimates. This indicates that even as more units are being delivered, the cost to produce them is higher than anticipated, erasing any potential profit. The Defense & Space segment followed a similar pattern. Revenue grew, driven by increased activity on the Boeing P-8 program, but its operating margin declined. This was attributed to unfavorable changes in estimates on the KC-46 Tanker and P-8 programs, alongside higher excess capacity costs. It underscores that the profitability issues are not confined to commercial aviation but extend into its defense contracts as well.
In contrast, the Aftermarket segment was the sole bright spot. Its revenue grew thanks to higher spare part sales and increased maintenance, repair, and overhaul (MRO) activity. More importantly, its operating margin remained stable compared to the prior year, demonstrating resilience and profitability in a business area less exposed to the intense pressures of new aircraft production.
The most alarming statement in Spirit’s Q3 report was its admission of “substantial doubt about the Company’s ability to continue as a going concern.” This is a formal accounting declaration that a company may not have the financial resources to operate for the next twelve months. For a Manufacturers of Spirit’s scale and importance, such a warning is a clear signal of a severe and immediate crisis.
The company’s management attributed this dire outlook to several recent developments. Changes in production plans by Boeing, including lower-than-anticipated 737 production rates, have significantly reduced Spirit’s projected revenue and cash flows. Compounding this, the company has been unable to secure price increases on its Airbus programs to offset its own rising costs. This combination of lower expected income and unabated cost pressures has created a perfect storm, forcing the company to state it will need to secure additional funding to continue its operations.
Management has outlined a plan to improve liquidity, but its success is contingent on several external factors. These include securing customer advances, achieving its 737 delivery forecasts, and generating proceeds from the divestiture of certain business segments. Each of these steps carries its own risks and uncertainties, making the path forward anything but guaranteed. Given this precarious situation, the pending merger with Boeing has become the central focus for Spirit’s future.
Spirit and Boeing entered into a merger agreement on June 30, 2024, with the transaction expected to close in the fourth quarter of 2025. However, the deal is not yet final and remains subject to significant Regulations scrutiny. In the United States, both companies have received a “second request” for additional information from the Federal Trade Commission (FTC). This action extends the waiting period for the merger’s approval and indicates that the FTC is conducting a deeper investigation into potential antitrust concerns.
In Europe, the acquisition has cleared a major hurdle, but with important conditions. On October 13, 2025, the European Commission approved the acquisition, but only if Boeing divests all of Spirit’s businesses that supply its rival, Airbus. This includes a specific requirement to divest Spirit’s Malaysian site to Composites Technology Research Malaysia Sdn. Bhd. (CTRM). These conditions are designed to prevent Boeing from gaining control over parts of the Airbus supply chain, but they also add complexity to the final stages of the merger.
Spirit AeroSystems’ third-quarter 2025 results paint a stark picture of a company at a crossroads. While production lines are busy and revenues are growing, the financial foundation is cracking under the weight of unsustainable costs and operational losses. The “going concern” warning is not just a procedural disclosure; it is a candid admission that the company’s standalone future is in jeopardy. The once-mighty aerostructures manufacturer is now in a race against time to secure its liquidity and stabilize its operations. Ultimately, Spirit’s fate appears to be inextricably linked to the successful and timely completion of its acquisition by Boeing. The merger is no longer just a strategic realignment but a critical necessity for survival. The coming months will be decisive, as the company must navigate its immediate financial needs while clearing the final regulatory hurdles for the deal. The entire aerospace industry will be watching closely, as the outcome will have profound implications for one of the most critical supply chains in the global economy.
Question: What were the main financial results for Spirit AeroSystems in Q3 2025? Question: Why did Spirit AeroSystems issue a “going concern” warning? Question: What is the current status of the Boeing acquisition of Spirit AeroSystems? Sources: Spirit AeroSystems Reports Third Quarter 2025 Results
Spirit AeroSystems’ Q3 2025: A Tale of Rising Revenue and Deepening Concerns
Dissecting the Financial Performance
The Widening Gap Between Revenue and Profit
Segment-by-Segment Breakdown
The Boeing Acquisition and the Question of Survival
Navigating a Financial Precipice
The Merger’s Regulatory Hurdles
Conclusion: An Uncertain Future Hinges on the Boeing Deal
FAQ
Answer: Spirit reported revenues of $1.6 billion, but also a significant operating loss, a negative earnings per share (EPS) of $(6.16), and a free cash flow usage of $230 million.
Answer: The company issued the warning due to substantial doubt about its ability to operate for the next year. This was caused by reduced revenue and cash flow projections stemming from Boeing’s production changes, lower-than-planned 737 rates, and a lack of price increases on Airbus programs, all of which created an urgent need for additional funding.
Answer: The acquisition is pending regulatory approval and is expected to close in the fourth quarter of 2025. The European Commission has approved the deal with conditions, requiring Spirit to divest its Airbus-related businesses. However, the merger is still under an extended review by the U.S. Federal Trade Commission (FTC).
Photo Credit: Spirit AeroSystems – Montage
MRO & Manufacturing
Bombardier Acquires Velocity Maintenance Solutions to Expand US Service Network
Bombardier acquires Velocity Maintenance Solutions, adding a Delaware facility and mobile repair units to enhance its U.S. aftermarket services.
On February 9, 2026, Bombardier announced the acquisition of Velocity Maintenance Solutions, a specialized provider of maintenance, repair, and overhaul (MRO) services based in Wilmington, Delaware. The transaction, executed through Bombardier’s U.S. subsidiary Learjet Inc., represents a strategic expansion of the manufacturer’s aftermarket footprint in the high-traffic Northeast corridor.
The acquisition provides Bombardier with immediate access to a 35,000-square-foot facility at New Castle Airport (ILG) and a fleet of mobile repair units designed for rapid response. While financial terms of the deal remain confidential, the move aligns with the company’s stated objective to grow its services revenue and secure a stronger domestic presence in the United States.
According to the company’s official statement, the acquisition is designed to bolster support for Bombardier’s growing fleet of business jets, including the ultra-long-range Global 8000. By integrating Velocity Maintenance Solutions, Bombardier aims to capture more of the lifecycle maintenance market, a sector that offers stable margins compared to the cyclical nature of aircraft sales.
The deal includes significant physical and operational assets that will be integrated into Bombardier’s service network:
Paul Sislian, Executive Vice President of Bombardier Aftermarket Services, highlighted the cultural fit between the two organizations in the press release.
“Velocity Maintenance Solutions’ capabilities and customer-focused culture make it an excellent fit for Bombardier… This acquisition is part of our commitment to continually elevate our service standards.”
Velocity Maintenance Solutions has established itself as an agile player in the MRO space since its emergence around 2021. As an FAA Part 145 Repair Station, the company is authorized to perform scheduled maintenance, structural repairs, and avionics upgrades.
Prior to the acquisition, Velocity serviced a diverse range of aircraft, including models from Embraer, Dassault Falcon, Gulfstream, and Textron, in addition to Bombardier jets. The facility is known for its 24/7 emergency support capabilities, a critical service for business jet operators requiring immediate dispatch reliability.
This acquisition arrives during a complex period for the aerospace industry, characterized by both consolidation and geopolitical friction. By executing the purchase through Learjet Inc., a heritage U.S. brand based in Wichita, Kansas, Bombardier reinforces its status as a significant U.S. employer. This distinction is increasingly vital as the company navigates trade tensions, including recent tariff threats from the U.S. administration regarding Canadian aerospace products.
Expanding physical infrastructure within the United States serves a dual purpose: it insulates the company’s service supply chain from potential cross-border friction and strengthens its eligibility for U.S. defense contracts. Furthermore, in an industry facing a chronic shortage of skilled labor, acquiring a “turnkey” operation with a certified workforce allows Bombardier to bypass the long lead times associated with recruiting and training new technicians. The location in Wilmington also places Bombardier in direct competition with other major service providers at New Castle Airport, including a Dassault Falcon service center, signaling an aggressive push to dominate the Northeast service market.
The acquisition was made by Learjet Inc., a U.S. subsidiary of Bombardier.
The existing team of technicians and support staff at Velocity Maintenance Solutions will be retained and integrated into Bombardier’s workforce.
While the press release emphasizes support for Bombardier’s fleet, Velocity has historically serviced various manufacturers. OEMs often honor existing third-party contracts during transition periods, though the long-term focus typically shifts to the parent company’s products.
Bombardier Acquires Velocity Maintenance Solutions to Densify U.S. Service Network
Expanding the Aftermarket Ecosystem
Target Profile: Velocity Maintenance Solutions
AirPro News Analysis: Strategic and Political Context
Frequently Asked Questions
Who is the acquiring entity?
What happens to the current workforce?
Will Velocity continue to service non-Bombardier aircraft?
Sources
Photo Credit: Velocity Maintenance Solutions
MRO & Manufacturing
Satair and Joramco Extend 25-Year Partnership at MRO Middle East 2026
Satair and Joramco renew their 25-year supply agreement at MRO Middle East 2026, supporting Joramco’s maintenance operations and new contracts.
This article is based on an official press release from Satair and additional industry reporting regarding MRO Middle East 2026.
At the MRO Middle East 2026 exhibition in Dubai, Satair, an Airbus Services company, and Joramco (Jordan Aircraft Maintenance Limited) officially announced the renewal of their long-standing Consumables and Expendables Supply Agreement. The deal marks the continuation of a strategic partnership that has spanned more than a quarter of a century, reinforcing the critical role of integrated supply chains in the growing Middle Eastern aviation maintenance sector.
According to the announcement, the renewed agreement is designed to secure a consistent flow of essential spare parts for Joramco’s base maintenance operations in Amman, Jordan. By locking in this supply chain solution, Joramco aims to minimize “Aircraft on Ground” (AOG) risks and reduce the complexity of material management for its expanding customer base.
The partnership between Satair and Joramco is one of the most enduring in the region. For over 25 years, Satair has served as a primary provider of consumables and expendables, high-volume, low-cost parts essential for routine maintenance, to the Jordan-based MRO provider.
In the official release, the companies highlighted the operational benefits of the extension. The agreement allows Joramco to leverage Satair’s global distribution network, ensuring that parts are available precisely when needed. This “just-in-time” capability is vital for MROs (Maintenance, Repair, and Overhaul providers) striving to offer competitive turnaround times to airlines.
A primary focus of the renewal is the mitigation of supply chain disruptions. By outsourcing the management of consumables to Satair, Joramco can focus its internal resources on heavy maintenance and engineering tasks rather than logistics. The agreement reportedly covers a comprehensive range of Airbus and Boeing fleet requirements, aligning with Joramco’s diverse capabilities.
“This continued partnership with Satair ensures we have the right parts at the right time, allowing us to deliver superior turnaround times to our global customers.”
, Statement attributed to Joramco leadership regarding the renewal
The renewal comes amidst a flurry of activity at MRO Middle East 2026, where both companies have announced significant independent expansions. The event, held on February 4–5, 2026, has served as a platform for major industry shifts in the region. According to industry reporting from the event, Joramco has also secured a major five-year heavy maintenance agreement with the German leisure carrier Condor. This deal will see Joramco performing base maintenance on Condor’s entire Airbus fleet, including the A320ceo, A320neo, and A330neo. Additionally, Joramco celebrated the first graduates of its Structured On-the-Job Training (SOJT) program, a move aimed at addressing the global shortage of skilled aviation technicians.
Simultaneously, Satair has expanded its footprint in the sustainability sector. Reports from the event indicate Satair signed a Memorandum of Understanding (MoU) with GAMECO (Guangzhou Aircraft Maintenance Engineering Co.) to enter the Used Serviceable Material (USM) market, addressing the rising demand for cost-effective and sustainable parts solutions.
The renewal of the Satair-Joramco agreement highlights a critical trend in the post-2025 aviation landscape: the prioritization of supply chain resilience. In an era where global parts shortages have frequently grounded fleets, MRO providers are increasingly moving toward long-term, integrated agreements with major distributors rather than relying on spot-market purchasing.
Furthermore, the Middle East’s trajectory as a global MRO hub is evident in these announcements. Joramco’s ability to secure European contracts like the Condor deal, backed by a robust supply chain from Satair, suggests that regional players are successfully competing on a global scale by combining geographic advantages with high-grade logistical reliability.
Satair and Joramco Extend 25-Year Supply Chain Partnership at MRO Middle East 2026
Strengthening a Quarter-Century Alliance
Operational Efficiency and AOG Reduction
Broader Context: MRO Middle East 2026 Developments
AirPro News Analysis
Frequently Asked Questions
Sources
Photo Credit: Satair
MRO & Manufacturing
Joramco Renews Maintenance Agreement with mas Cargo Airline for 2026
Joramco extends its maintenance contract with Mexican cargo airline mas for heavy checks on Airbus A330 freighters throughout 2026 at its Amman facility.
This article is based on an official press release from Joramco.
Joramco, the Amman-based aircraft maintenance, repair, and overhaul (MRO) facility and engineering arm of Dubai Aerospace Enterprise (DAE), has officially announced the renewal of its maintenance agreement with mas (formerly MasAir), a prominent Mexican cargo airline. The agreement was finalized and signed during the MRO Middle East 2026 exhibition in Dubai, marking a continuation of the strategic partnership between the two entities.
Under the terms of the renewed contract, Joramco will perform heavy base maintenance checks on the mas fleet of Airbus A330 freighters. The work is scheduled to take place throughout 2026 at Joramco’s facility at Queen Alia International Airport in Amman, Jordan. This announcement underscores the MRO provider’s increasing traction in the global cargo sector and its ability to secure recurring business from international carriers outside its traditional regional stronghold.
According to the company’s announcement, the new deal focuses specifically on heavy base maintenance, often referred to as C-checks, for the carrier’s Airbus A330 fleet. These checks are critical for ensuring the continued airworthiness and operational reliability of the freighter aircraft, which are essential to mas’s global logistics network.
This renewal follows a successful initial collaboration established relatively recently. Joramco and mas first formalized their partnerships in October 2025 at the MRO Europe exhibition in London. That initial agreement covered maintenance checks that began in December 2025. The rapid renewal, signed just four months later, suggests a successful execution of the initial checks and a deepening of the business relationship.
In a statement regarding the renewal, Joramco’s leadership highlighted the significance of the repeat business.
“We are pleased to welcome more aircraft from mas at Joramco. This agreement reaffirms Joramco’s position as a trusted Global MRO provider of choice.”
, Adam Voss, CEO of Joramco
The agreement with mas aligns with Joramco’s broader strategy to expand its global footprint. By securing a renewal with a Latin American carrier, the Jordan-based MRO is demonstrating its competitiveness on a global scale, attracting airframes from the Americas to the Middle-East for heavy maintenance. The timing of this renewal is notable within the wider context of the MRO industry’s capacity constraints. In late 2025, Joramco inaugurated “Hangar 7,” a significant infrastructure expansion that reportedly increased its capacity to 22 parallel maintenance lines. This expansion appears to be paying dividends, allowing the facility to accommodate the “more aircraft” referenced by CEO Adam Voss.
Furthermore, the cargo market remains a demanding sector requiring high asset utilization. For a specialized Cargo-Aircraft airline like mas, which operates a modernizing fleet of Airbus A330 Passenger-to-Freighter (P2F) aircraft, securing reliable MRO slots is a strategic priority. The quick transition from an initial contract in late 2025 to a full-year renewal for 2026 indicates that Joramco has successfully met the technical and turnaround time requirements demanded by the cargo carrier.
Joramco: A subsidiary of Dubai Aerospace Enterprise (DAE), Joramco has operated for over 60 years. Based in Amman, Jordan, it provides airframe maintenance, repair, and overhaul services for Airbus, Boeing, and Embraer aircraft.
mas: Headquartered in Mexico City, mas (formerly MasAir) is a specialized cargo airline operating scheduled and charter freight services across the Americas, Europe, and Asia. The airline has been actively expanding its capacity with Airbus A330 freighters to support its international network.
Sources:
Joramco Extends Maintenance Partnership with mas Cargo Airline for 2026
Scope of the Renewed Agreement
Strategic Context and Capacity Expansion
AirPro News Analysis
About the Companies
Photo Credit: Joramco
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