SPR - Earnings call transcript Q4 2021 | Spirit AeroSystems Holdings, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Spirit AeroSystems Inc.’s Fourth Quarter and Full Year 2021 Earnings Conference Call. My name is Charlie, and I will be your coordinating your call today. [Operator Instructions] I would now like to turn the presentation over to Mr. Aaron Hunt, Director of Investor Relations. Please proceed.

Aaron Hunt

good and Charlie, you, morning, everyone. Thank Spirit’s call. to fourth quarter results XXXX year full and Welcome Hunt, of Aaron I’m Director Investor Relations. Chief Senior And President with Chief Sam President Operating Spirit’s Commercial President Vice Marnick. and Spirit’s Mark and Vice Segment, Chief Executive Officer Spirit’s me Officer, Tom President, today Executive Financial Officer, are of Suchinksi; and Gentile; questions. After outlook, we and regarding our opening performance comments by Tom, Sam take Mark your and will

may include we are I we projections to or likely you are remind this detailed earnings release, which any our begin, in filings that in to statement forward-looking our web end Before need at the our risks, of today discussion presentation. SEC goals involve in the and in

and use reconciliation non-GAAP on investor.spiritaero.com. you slide turn to presentation our I for In our Chief discussing refer when can call and would at over like addition, as we disclosures measures Officer, follow of Gentile. release you a Tom we presentation results. Executive website earnings to And our broadcast reminder, the that, today’s and With to our

Thomas Gentile

flow three morning, target. over our COVID-XX and delivering diversifying navigated communicated year meeting fourth faced priorities, we to revenues, you, million and we $XXX the year. ongoing a delivering customer year, XX XXXX navigated $XXX employees $XXX flow the margins we million, Throughout which to years COVID quarter was we keeping driving on the our results call. everyone. $X year and range pandemic, XX.X% successfully negative successfully good Welcome Despite progressing our focused challenges $XXX the our to within Aaron, last safe, year on in billion to our of commitments remain negative negative negative due three main expected million that of and million pandemic, the of Thank cash we full ongoing Spirit's XXXX cash delivering the due to the

Dallas, diversification. our Agreement The integration included Belfast six new good we months items Bombardier defined XXXX and the Bombardier the participants. progress assets from During plan We only Services on acquired exiting Technology of and in the pension remaining. substantially made benefit to closing Transition with we with Casablanca minor completed Information Belfast, the early efforts in

Our increased addition the center from acquisition suppliers with this position Airbus and work as AXXX of one to top packages the strengthened wing significantly the of fuselage Spirit's and Airbus. integrated external

a the the jet also We also with increased addition top we The foundation to build continued good during business established which content. to became a significant our acquisition supplier Bombardier on and business of aftermarket year.

In a Defense, build shortly addition, for help won the our Belfast closing UK loyal Ministry of business the The Project known as was acquisition wingman contract grow Mosquito. that the deal meaningful a even we acquisition demonstrator the learned to efforts. the defense team diversification had accelerator after to our

in quarter, begin Aftermarket. we third business would report segments defense and new result, a financial results As the three to in Space commercial, and announced we

and Kailash it Sam? We commercial I'll these align lead Sam respectively Marnick, the and segments. Hawkins now more Krishnaswamy talk segments Sam with changed segment. new also turn appointed to Duane to to organization to new the about three our over

Samantha Marnick

on and the business everyone. Tom, commercial segment, in focusing morning, you, Thank good XXXX. In we're priorities three

the on program production coming our increases meet to body production execution First, in narrow rate.

increases. body future. changes once series execution. the will look experience rates XXXX, productivity XXX per partly production the growth But need of on from ready to at operations for last aircraft meet reaches XX.X% the our margins the customers be in MAX made many month help focus progress let's projects the Second, Spirit first, the In and on renewed our a based that XX continued so we to we are rate narrow future. Improvements can on that high-end achieve to

Now, while help in us tooling place are the adding These changes other of models achieve will MAX, some we challenges behind the NG solid equipment help and multiple us of meet face. like whilst in producing putting commercial and to measures the might simultaneously us, complexities, the segment. we are execution

automated such the example, times XXX and flow advance our Global Digital which workstations. beam location preparations, we production structures [indiscernible] been is result between state a new AXXX floor assembly launch of number expected floor team centralized plans a preparing as feet employees a our For line, produce spoiler art Center hundreds be digitization in system spoilers improved and for And rate. automated execution. hours to at and ahead a at those will production production specialized fabricate of efficiency, The established site, our line and react emerging readiness. wait of And The parts chain Logistics peak improve consolidates readiness to to of The and the ready in reduces the many required to have to the is for at on kits the new of of pressures. productivity square areas the to Prestwick our looking plan Spirit’s to test has assemble better to increases reduced team thousands supply site. quality

risk. we acquisition help mitigate fabrication with Additional may capacity our area gained asset a new be our used capacity to Bombardier in

XXX Our inventory, XX see reduction approximately in factors will to the buffer level is expect a the remain XXXX, ships in of XX%. XXXX we the ships, which permanent production a reach currently inventory. By plan as end which at

aligned XX in place programs in the believe with We are We month the of execution preparations per body will beyond. narrow production and also rate. production increase we on for have communicated rate planning will increased drive help to and XXXX aircraft the XXX Boeing's remain

on is margins move a production we team down driving to The Now, as of focused reduce we on our higher to body costs costs. rates, and initiatives also up. working remain number narrow

can factories that versus we what have we see cost-effective from what make team suppliers, our in a on so we mix based we our We could have that what production plans. a -- regularly purchase reviews we

related closely utilization. initiative regular review of Another is our asset

that overhead to began and pleased hours And for Spirit promises future closely our in our new emerging to to improve to vertical landing turning programs, are won opportunities Falcon two We company maximize improvement. work our growth and usage have for for available space we teams for potential. We costs eVTOL in with XXXX, takeoff missile The the margin Dassault and that equipment business exciting or also ahead. jet electric an watched capacity new place footprint the team the repurpose including XXX. work optimize new

evaluating, new improvements build commercial to We we XXXX, deliveries summary, have team and opportunities. continue a of many new In expect pipeline narrowbody to intend opportunities to a that we The and is to increase. production the for see in our With we and the turn have over new have we higher segments. have place assembled have back we anticipating the we Tom. commercial the opportunities been production for rates team that, put forward to look to and I'll

Thomas Gentile

Sam. Thanks,

strong Airbus Our Boeing position segment programs. current on commercial business a and has

number Sam a to narrowbody programs. expected changes meet of as made many enable also growth the to us But opportunities, rate other have described. have We we increases on

business we several State Maine we several their of defense space NASA October, the joined for along quality. to future engineering improve announced Institute won very and has projects, advanced up FMI in a also thermal a active will our Defense opened Martin Early year, team emerging Center and assembly Aviation protection and with in Lockheed National contracts. setting unveil with for or to University's selected cost classified for new us digital Wichita our in Then that Our NIAR. Research, the contract National growth. Prototype In Award we that reduce in space been to defense help and NASA partnership Polaris, demonstrator support summer customer our provide had the in also business systems

continue significant $Xmillion we have program business to million. win We just a one a future XXXX, such In over lead projects and that had development defense revenue. to over $X could new XX now

recently capacity, widebody the due production by repurposing international of the win is we rates. in air programs have traffic to which been One is ways widebody lower available and new recovery slow to able

defense for XXX,XXX expand a today almost square the plans feet from over feet to have We X next million years. footprint our about to two

$X to that Moreover, strong. and our will space finalizing against is new contracts additional In amount. funded defense billion pipeline business extremely and that addition, multiyear of grow are programs new funded increasing continue records and in we execute for

by We additional on space remain opportunities defense many and track to typical the revenue and margins. at space have and defense defense XXXX shaping. projects actively $X that in team billion We our business to grow is

and Turning us to our two to XXXX. to gave segment, us our and acquisition asset in and upon flight capability missile and Spirit wing and Airbus our early add added in from control large repair Bombardier a the portfolio acquisition Boeing for Dallas, The presence radome we The center Ergonomics headquarters -- to Aerodynamics built engine, component to gave Applied Applied overhaul the foundation decided have repair. surfaces our and repair there. flight acquisitions Aftermarket aftermarket we

and at our our the commercial. changes to We company. help by about also revenue We $XXX space from our In our XXXX, of to us margins. In to our three in commercial X% future, segments our a aspiration the expand that diversified segments. with XX% will more was aftermarket XXXX believe services in EGAT aftermarket. from plan saw XXXX, In Taiwan million up our revenue business was approximately XX% accretive In of organizational and Asia. across set business XX% of we a split $XXX defense JV a from grow and new million XXXX, and revenue XX:XX:XX business, be become the is

that the to But dependent this of the We XXXX breakeven MAX. decides advance $XXX Boeing. of are rates Boeing on path on repayment in aggressively highly million production is pursuing course, for a flow net finally cash to

XXXX to will turn provide on our details I’ll take the over our recover and Mark rating. you investment call results credit further to through Mark our de-lever our on efforts detailed expectations. and grade Mark? to Now, more financial also

Mark Suchinksi

of new commercial, Spirit's that focus for you, we Belfast, has on services me our Spirit. to space a strategy position that, Bombardier the and and XXXX, Despite everyone. Morocco provided and past aftermarket. expanded applied provide Thank the the customer especially form FMI, The unique integration years, of encourage our diversify in and global site on These challenges maintained base. footprint With to our good sharpen Tom, capabilities, last focus have the segments us transformative well the segments; Spirit from grow which we during couple over and products and saw year aerodynamics customers. very to three and Dallas really to us new defense and need morning,

the on our key as rates, well which next and revenue the three single increasing we target. to to as the to ahead production segment execution over deliver driver three the $X of diversify XX.X% focused margins years Looking XXXX by are a priorities billion beyond, aisle are

with from driven to AXXX jet billion, pause the in continued further the COVID-XX deliveries. Now AXXX acquisition increased let's due Bombardier in was of results. impacts slide the lower XXXX the program on program, as to offset or partially These rates X. by up was were the that, by well Airbus and programs XXX revenue aftermarket. of air and as well move Boeing's pandemic This from business XXXX. production wide-body our $X in traffic, growth as XX% production increases higher international XXX rates turn primarily Revenue for the the improvement year as to Please program Bombardier resulting

more shipsets XXXX, overall XXX in in deliveries XX shipsets increase shipsets turn compared XXX while doubled to to we to XXX shipsets than deliveries XXX delivered XX shipsets XXXX. to As deliveries in to deliveries, XXXX. shipsets decreased to XXX X,XXX to compared compared

curtailment tax deferred settlement VRP the excludes allowance, adjusted and asset and per compared $X.XX of earnings now earnings $X.XX negative Let's pension to offered restructuring, costs-related losses. share allowance. XXXX in per XXXX expenses in on X. to $X.XX and Adjusted M&A slide $X.XX valuation gain related the share to in valuation EPS EPS M&A, to tax share excludes was adjusted restructuring negative per deferred the costs, XXXX. XXXX. XXXX negative We’ve turn EPS negative compared asset reported

significant during Looking to aisle on single cumulative the full charges rates. Despite in the up well and estimates, cost the forward actions the compared impacted rates the negative of restructuring adjustments XXXX. overhead we programs. increasing catch programs, XXXX, improvement production losses than to widebody charges year to in margins, lower COVID-XX by recognize on last the narrowbody saw an and improvement reflecting including as was negative costs, significantly XX% expenses, more loss we forward XXXX the XX% at excess lower operating especially have changes recognized taken [indiscernible] capacity, two XXX, compared offset during and the benefits we with year, and programs, production XXXX, as continued the lower execution profit rates In along years, including reduction over which the

XXXX Forward Airbus $XXX production by driven on by totaled and XXX losses rates the primarily lower announced Boeing in programs. million, AXXX and

in expenses from Voluntary US by defined of Program. driven of the the settlement driven Bombardier cost a benefit as some In plant to closure addition, million the AXXX engineering acquisition the curtailment primarily on $XX recorded the on also XXXX XXX we In and by and off $XX XXXX, in XXX resulting and plans a additional program. production part pension of million. gain rates - programs. of by increase to related other an of $XX and addition of In Retirement losses, income was rework million loss forward recognize lower analysis XXXX, a million we of primarily spin $XXX impacted acquired the

in these items of All are nature. non-cash

non-cash we of during to XXXX. assets, the Additionally, recorded year, we $XXX recorded million deferred allowance income $XXX in compared that on valuation a million tax

free year a use cash turning were flow previously usage the million $XXX costs offset that slide XXXX. The impacts flow cash use for the the refunds. have $XXX million million range working as of Now Pension from flow and to Belfast communicated. well deliveries, line X, cash the in free of a $XXX was was Free of of by flow with $XXX in to as lower capital, for compared income during Plan a on year we free XXXX. payment restructuring tax made towards of These million positive cash benefited higher partially

the as million MoA the February of XXXX X. of debt $X.X With we now to turn slide on let's cash We Additionally, with billion and negotiated free debt. received XXXX balances with cash included and $XXX year our ended flow that, cash part billion of Boeing. $X.X that

to advantage environment of when rate took committed Then remain our $XXX In $X.XX%. $X October, terms February of believe in commitment rate we in notes. of of Spirit billion us which delivering, of our of XXXX, debt which rate status our lower We regain end refinanced interest from XXXX, progress this we down we the prepaid term floating and the through to lowered million loan, to grade. initiated enable paying of investment on will interest X.XX%

This segment performance. structure, the segment new we've Defense & her and Commercial, the first discuss let's time Now, including Space is reported Aftermarket.

revenues in with begin and catch-up the let's to volumes the improvement on volumes compared excess XX% due XXXX, offset segment higher the restructuring, partially slide capacity XXXX. recorded for as as volumes on $X on AXXX the production losses, to XXXX the to of $XXX year million production margin So expenses forward business forward Commercial unfavorable due net and million programs, X. the In compared and XX% program. XXX, primarily higher In to commercial XXXX, COVID-XX XXX, forward [indiscernible] to jet in million of increased negative losses. XXXX, $XXX related of The particular margins XXXX. million lower comparison, $XX as well were losses adjustments lower compared segment primarily and during X% to operating and year.The the by of during recorded prior catch-up Operating programs cumulative unfavorable cumulative XXX Bombardier adjustments in was negative in on

is by in a $X charge impacted forward negatively or during segment on program $XX the In in the KCXX classified slide onetime activity XXXX revenue million compared year the non-classified Now, operating margin XX% improved approximately to by investment primarily due let's move on in of XXXX. program was to Defense primarily XXXX, driven losses, which & to on forward compared and losses million program. higher made XX% & Space compared revenue on to tanker The a Margin XXXX, for X%, recorded Space, was XXXX by in and segment XXXX, to an PX growth. Defense XXXX. X. increased V-XXX million $X

the the For spare turn Operating to XXXX, year to which to results, activity sites, full mix driven we by for throughout XX%, of compared slide improve in progress acquired begin the offset we to lower the Belfast inclusion year. were by were XXXX, product Aftermarket and improved sales to in by compared parts from now will and year. revenues and XXXX, lower Dallas XX% quarter primarily the late in margin costs. XX% Traffic prior our favorable In to continue it closing, compared segment air driven to aftermarket XX. recover restructuring expect MRO as saw let's up XXXX partially

to our aisle priorities XX the will margins, addition production months of our be the increasing over key execution three In next delever drive rates. diversify to and focus on single

efficiency effective performance us rate couple our Our productivity AXXX look a over increases recovery, years of should driven manner. market specifically programs. last be our enable ahead the we will improvements the and and to by made meet in within production the XXXX to factories XXX commercial cost more If

we in anticipate financial That As the margin of meaningful year lowest revenue, our the flow. quarter year. first said improvement cash throughout a result, see expect including revenue the deliveries, and quarter flow to to for with be and earnings cash we improvement metrics, deliveries, the

it for Tom some over me to back closing comments. let Now, turn

Thomas Gentile

was transformative XXXX Spirit. Mark. for Thanks, a year

out of one investing to in We the continued pandemic Max that of better productivity period in. this went the our recovery a XX the we emerged from coming the innovation grounding and COVID ensure than crisis dual and by company

made in and substantial a which reporting diversification segments. those also We in new to new aligned organization segments efforts, progress on culminated our

aftermarket, aircraft. continues around some demand and COVID have world air Space continue production increase. about variants robust, of recent excited and narrowbody domestic segments Defense though narrowbody travel rates the of Spirit's traffic of volatility new at customers remains these backlog with are both the to our OEM the for even XX% to launch and Commercial, We three commercial is

We we our targets operations have are supply so ready chain and narrowbody that production from both of evaluated our meet customers. our the to

remain also a good three our in a $XXX year higher refinanced to upsized over the rate committed to loan This rating. to options $X alone year secure total to We rate repay flexibility off debt obligations. notes to regaining retire to XXXX. give starting and will in floating XXXX. B million paying ending other we of evaluate make of credit billion our progress, with of continue term We also February lower us in period investment We grade interest

that, bring in and improve rates to investment narrowbody productivity results our and Our ramp XX.X% narrowbody the and segments. in of of actions our space flow take projects With be innovation expected of increase production and will margins rates. our month. These us reach XX contribute with the generation, happy aftermarket continued financial will objective growth new operations improvement once we'll in production MAX rates our your questions. help XXXX per defense to achieving aircraft to our cash will same our

Operator

comes UBS. first Myles [Operator question Instructions] of The from Walton

open. Your line Please is ahead. go

Myles Walton

a year then to why high Could the roadmap in explain XXXX? as I'm course Tom that level start Thanks. about to loss you as give segment, if so sure are at like tough and I’m it so through the Mark, It costs, about going improving doesn’t we company just it’s charges to underlying. to just going talk the ask little which, and they excess then us a underlying could you the the level. inflect not margins, maybe really into Good nurture forward or morning. really XXXX excluding excluding of ask in trends you segment look the margins

Thomas Gentile

start I'll Well, that, with Myles.

primarily of really did last start narrow on all, throughout linked the we and body rates to margins of see to course is improved year, aircraft. it First the

we we've some commercial As And ultimately will in see going go fixed get that margins happen. lower the couple on let's better to into those had on cost this year those AXXX, improve overall, in into positive lead that. segment, a performance cost continue XXXX fixed drive that up, better the and past absorption that MAX the excess years. same coming of again, to focus better We're getting benefit the And absorption. rates We on and thing has costs and and both will next margin rates the year. to of

we the As get to when we margins. the that's per we said, stable on good MAX, that's XX XX.X% aircraft month that's amount, to get think we surrogate can when a a and

Mark Suchinksi

I’d through Myles little the losses gets a -- XXX defense fourth with lower expected charges just a The to as particularly say it couple a the area. Yeah, you guys that XXXX, with difficult volumes, numbers. try quarter the messy forward in production was you little dig it's bit in for one-off or additional of glean

programs along those quarter, strip items get once you with to fourth we if have loss on for which excess those the and loss and to out a the we're in one-off rates. the programs we mainly our think third forward out, look twin as costs starting a items, programs few Those more lower the on related at I where higher So with see situation. of alignment are volumes been we our normalize kind aisle

when the to XXXX twin up low production gross overall at to benefit actually benefits in move stable were think past profit we rates. get And the at I we we know, to and know we're you think see we're aisle and planning you see underlying look XXXX. as I here rates, starting in show our margins. start we'll execute into XXX now higher AXXX the And of our

those of some a in XXXX tried know of accordingly. that and and that changes, lot be and so we've impacted will a of we've behind XXXX of us ups to react lot you us have things And schedule really a to lot noise seen downs

the a opening our start comments, challenging in said know see expecting quarter our second that will from as But quarter we XXXX. you'll throughout tick I here most as the you'll up And growth you margin start my we and nice what to compared in you're should But really improve think third see move be quarter incremental in I see revenue you've seen and flow first in first to a in a cash here the standpoint. things XXXX. margin earnings quarters. to an

Thomas Gentile

if you they're to back we at going you'll the you couple to a go years in And a normal forward. said, as would the the range look Defense aftermarket, just add see they're XX% north of really to margins of be segment but got I for XX%. XX% going to year, that

the So also in will those contribute future.

Operator

next The comes of from question Harned Doug Bernstein.

line Please is open. Your Ahead. go

Doug Harned

morning, thank Good you.

need has On the mean, FAA from I can in XXX, talked inspection -- standpoint. to get this look of enough volume enough a a sense, about the Boeing and the know, volume of so enough through you sense at repair, statistical

you delivering You at where and there know, the production get a been then forward of inspected the through able you've that new to at mean, sure the when completed on recovery at Spirit you and look in XXX now, the pressure give to shipsets now a Boeing. section When a you -- in you've you've was role, the Can are meets make of doing and are delivery sense on road delivered being I then the that repaired both you're you And bulkhead, been overall that work at and the non-conformities us being to are standpoint? gone, XX. number, this from sort terms aircraft also where Spirit's requirements. you're look of it

Thomas Gentile

that are those start completed the all what going to and we as Doug, changes production need are make and the that those production, executing changes on analysis, and new know through forward now produce we've we again. Yes. incorporated to been we and we've all to we engineering

to complete has we're XX% the able had get that need will in during terms again, and still and that of of Boeing to last the them. storage access to get to to of units were and on that rework because those do access the we we we And aircraft. in points XXX do as those done that in year with identified we've In say different complete all I'd also rework, we've about be the rework needs fact, rework we

we're And it we know so production started build we into in teams I on And of be forward. to XXX. done. operation that work, production, as we resume the we now the has We've and And complete. putting will are the said, how new know what as terms it already XX% essentially perfecting going

Doug Harned

And then deliveries see have given of happen? sense that any you updated when insight, do we might

Thomas Gentile

Nothing week. call beyond Boeing their last in what indicated earnings

are waiting information regulator customers. them for close obviously give there, with in we and contact to more us So the

would I So last the defer they'll to that comments just resume deliveries. when week Dave Calhounmade on

Operator

The Strauss next David from question comes Barclays. of

Your open, line please ahead. is go

David Strauss

excess morning. capacity zero? off coming pretty in you're for max rates? XX% terms those Good also in Do thinking think Thanks. capacity talk for just Is year. previously cost this Mark, seven end still right what on to pathway you that did had XX% point? of the Morning. $XXX capacity excess at lower, close Thanks. cost ? Mark -- we get you in the by you can And this actually Are good costs? you each about I of taking the are burning million based or year on Maybe about of down terms these excess said

Mark Suchinksi

question. good Okay,

got mentioned I'll we've and AXXX. capacity - that impacts excess is one because multiple seeing do XXX, our lower there much we're so We we're and impact our costing on negative costing have AXXX production an them of rates the Boeing the XXX of a the one that have twin is So on rates is XXX what rate collateral aisle lower, that a twin on shared a has impact programs. negative production in lower production on programs it to as period another is you aisle programs has call the our

and So excess the higher $XXX acquisition way AXXX mainly to on costs, to XXX we we XXXX excess rates. capacity in Bombardier, of AXXX integration of the excess related the some XXXX, – or our additional incurred with worth with costs million in production included

in ended and about that of to where XXXX. see And XXXX, in rate excess So we it saw $XXX the $XXX what should I XXXX million call our up on we half ramp between based we somewhere roughly cost in be million. expect

Operator

question comes of Research. next Melius The Robert from Spingarn

line is go Please ahead. Your open.

Robert Spingarn

Sam, morning. XX.X% on needed sense company your a more to rate comments initiatives. work open cost margin initiatives $XX get get to the And how to the to wanted of that? I Good is still much cost you or these accretive reduction

Samantha Marnick

we'll to I to gain. what XX.X%. that time initiatives, – these of it's as we the see spent say to of can really would of increase really place, a part a starts getting benefit of we lot past probably that and those we efficiencies getting this rates in These lot So that see start year-and-a-half is what

we the that, to is, there are a point month, aircraft future do looking other get here constantly of at number that and out into that initiatives to whatever are that we're a as that. we baked not go XX Additional into the eventually

as terms make out look to on what parcel you we might where with need about us supply digitization, in you what the at we've the the of you far and chain are getting do terms in of part look talked all with of your be by initiatives example, you years, the as For in done so the I those automation, XX.X%.

Thomas Gentile

and also recognizing these say will that our that to other going always we internal have challenges going would overcome. come of labor, any like higher, to to to material own And some there Yeah. course, targets might of inflation be and be Obviously, headwinds are set leakage, that, up. but I are that projects, set things offset all of

standstill. to have we run always fast so we And to say

to to initiatives to So that, And target plan that but into achieve than least more Sam are achieve at built XX.X%. make we've outlined the want get to our we that. sure that we all

target. already offset still and to to are so execute we and And that is the our that there goal know deliver headwinds

Robert Spingarn

that. Thank for Okay. you

clarification talked from cash XXX? I lot net think do for XXXX Mark, on so effect about quick and how a flow Just we Mark, could. about ramp the if the in slow the on. We've rework a and

the rework of the being cash shipments down on Some things, as builds. new way. negative on engineering all the But the these course, and I of margin then goes a other guess, positive given

XXXX what's a to tailwind or XXXX you know that being So and effect lead a headwind? the on in net XXX does

Mark Suchinksi

Rob, really good question.

well. really program our know You

have cash negative program. we the a unit a flow we're right, in forward unit on you're by so And loss XXX basis position, on since

production would the rework a lower finalization completing. those of us. engineering in offset benefits that some analysis will the we're be in rates benefit to here that I say So XXXX additional

offsets we're So cash to the volumes rest at the though XXXX. supply our is complete a parts call the standpoint overall, focused it the that needed. rework system, the really in on had lower process XX% rate the that at savings with of in I area of from required a in work remaining rework, line of chain system go one is higher think that we the in along there XX% is production that the expected The

getting So alignment jobs there rate production if of more the at here we do getting our from with rate in production. right, tailwind be system current some flow in standpoint an the lower the inventory of in XXXX could units the number

start to them. Boeing tailwind they when the And focused a little standpoint bit flow got a so work cash that lot there we supporting we'll could in up, of for be there. of to very, And decide do back on But a provide go XXXX. we're production very from

juggling. pieces we're multiple So

maybe production our benefits I aircraft get in back Boeing And of job the production if should lower The right, parts deliveries. We do levels supply to this airlines. our starts to a when lower by system good and of sync we production rates chain getting think still managing product majority with to down deliver a the of some we got we bit tailwind little complete it year. you've then, can here rework. have that

Thomas Gentile

And the do XXX XX% the it completed that cost on really year. I rework year for But have of to of spent the And included think of this which the another because it rework last of because we engineering analysis, cost the is be offset essentially say lower will way XXX. don't this year. to XX% on the XX% rates we production the

Operator

Our from Kahyaoglu Sheila comes next question Jefferies. of

Please open. ahead. is line go Your

Sheila Kahyaoglu

segment Hey. break was for there But maybe commercial is if Good guys. out. about context. you morning, time. really profitability. historical appreciate Thank the I could talk wondering no the I we

specifically, it if and do look XXXX think of you program that up profitability maybe the on profitability give the rates? could XXX maybe in like as bit what a steps So little or how about did we

Mark Suchinksi

days we'll from XX-K this worth our here, -- our would our three it good under if few Hey, Hey, can will you new hear you. to be Good just of we XX-K, morning. show years’ say give it's file I when segmentation. a us results filing Sheila. and

results results. XXXX you'll XXXX results, see so, and XXXX And

You'll see a breakout between commercial, defense, space and aftermarket.

see You'll revenues.

You'll see go days. have profit. in filed few margins we and operating should next operating to this back And really I think the you if XXXX,

margins give for to get feel you production the back type we when rates. will segment good that normal a think I

get get really And to don't so want and I too specific. ahead

here disclosures think margins it's talked of call excess earnings what then I go, you somewhere a I We've feel And move expected when for or are aftermarket you overall XX%. in proxy easy typically give pretty XX% is and when expect you production are We've we told you XX%. good you be. as good saw XXXX, what see normal I we a think you margins in commercial those file should defense were that that see as the and XX%. think about in from release between to north we accretive will always margins XXXX of XX-K that I think our today what to into

Thomas Gentile

we look it's And I program still particular, is driver add because in at the major our for big a to that this us, a of that's just would economics. as still obviously XXX

XXX% we month at a per that we're were stable picked of One we were NGs. at is and time in as and look is was we going XXXX it the producing to reason XX the sense about a because do the was of things comparison, aircraft XXXX production

still bit we MAXs. now both doing NGs little in MAXs. of we're So But even XXXX, a XXX% were and

a as to overall. using to all we're operating order say, do and to our where we the in so to target of XX.X% comparables margins XXXX metrics need surrogate get get And drive to the

Sheila Kahyaoglu

going about there? how XXXX. and I just XXX, then can about profitability the And actually talk it looks you to was on ask

Mark Suchinksi

X you Spirit. Obviously, good us Right? to XXXX and margins. for a about XXX -- for program has really always a we good been year cost benchmark I teams Sure. as talk mean, our talk about know, Tom when to starts

XXXX, per overhead month the timeframe, that roughly XXXX headwind and the a aircraft back we rate producing really eight right were really -- You absorption of know, at we in helps margins. that supercharge have

timelines them they Boeing we're more for profitable a years per get We're and us indicated, ready you we’ll indicated can lot at has continues have has we're couple and commercial of more freighters. a buy start looking Boeing month. that orders. about XXXX. deliver in program XXXX two, excited and the Qatar hopefully to on nicely Boeing certified to the It's of over for It's We airplane freighters. you to three, Hopefully, as support liked the XXX getting on see aircraft marketplace four and be will know, program to that next hoping our know we to a be go that, and You the freighter us. it's good they contribute the start margins. one delivering hopes platform, customers end And up, help at rates those looking to as in XXX contribute with that overall and know, excited execute that, to of the XXX

us move contributor and for good it'll a XXXX and we program be into as So, it's XXXX. a

Operator

comes question Baird. from next of Peter Arment The

ahead. Your line go Please is open.

Peter Arment

Mark, defense up you Tom, with on could Sam, margins. kind of just Mark. Hey, morning, Good follow Yeah. maybe just I

of to development. is got of normalized kind assume planned you a that they're I You still some growth know, of commented in you XX%, of but XX% you've that kind more in and lot front as of

So Thanks. we just about going pathway on XXXX about think forward? if margins how those know, thinking and do we're XXXX the you

Mark Suchinksi

Sure.

a couple cost talked that really It here really of with on to call million $X that we the one of what And everything that fourth ZXXX forward. as a if defense kind quarter. That in depressed the investment in on and You XXXX have the know, onetime our at two we I non-classified our items show And we XXXX about looking be we'd had up programs Bell XXXX, was we them it know for exclude to work agreement won't on XXXX side. of we XXXX, couple, a And as in program. then those onetime had you margins. move sharing I at that the made a doesn't we charge margins in look with an margins lining we that are. when XX% that. agreement is items defense XX% win repeat an

programs into still like programs margin some of development programs and plus We for we've the enable know achieve, that mix development you all we're We are to you that doing. classified been that we're typically mature fair work is have a CXXXK. which programs, on programs in type the nice know BXX, type a classified cost the winning

into So we've path We're excited about defense, got a right? good it.

and types expect XX% as a really almost contributor into into business. grow, overall know margins we XXXX our of And move about nice growth You profile in feel to it's we nice book year. going growth be to XXXX those continue XXXX good we to as of this we to another achieve and in

Thomas Gentile

to there. programs, programs, categories. materials. cost are And a CH-XXK way tend new these would And the and the and of very KC-XX, mature which Yeah. bit military specialty things niche specialty targeted, be tend I Mark came it plus. which I for the that production, classified to barriers, think particularly would we are thermal of out programs I three applications, acquisition are can look then of that higher more be say protection margin. aircraft in FMI core have it PX our in of one type commercial even have applications those some say And little and base that the derivatives on we missile more to mean, maybe at mentioned like as defense margins and then you are include

can the And those things give to Space & going segment that the consistently forward. XX% three of combination confidence margins so deliver Defense the us XX%

Peter Arment

Tom. Thanks, details. the Appreciate

Operator

question comes of Research. next George Shapiro from The Shapiro

line is ahead. Your open. Please go

George Shapiro

the forward production some Good you morning. took want due clarification. loss to on lower I like it just The if XXX Mark, looks was rate. that

And included magic to of kind for can had the one, us XXX that's you you So two, you as the rates the did XXXX, incurred you're number? to in rework the in XXX, that tell the expectation then of terms when including the get not what charge. you cost on your which the for as

agreement roughly have charge spell are Boeing terms billion you and the as be to out then they going any? might to what there $X.X if those of to much can took, you that is how to Thanks. So any costs contribute in

Mark Suchinksi

two let Well, first the questions answer Okay. Tom address me and the component. will third then

And isolated million total. And we as work, fourth et lower the in at that parts, quarter so attack the indicated, deliveries, XX%, during rework are of the recorded look relates about, and said, those million completed talked roughly lower the second was to XX% me have combination work and $XX forward number And in did are Tom units quarter of completing forward but system let were approximately we We engineering of in so okay? we in XX% $XX units. the the primarily completed, which the Tom replacement losses spent reworking we did, as their airplanes as that Boeing that it's and XXXX, fourth in itself, in estimates, it rework, actually of incur that spent complete those of cost specific about which And rework, cetera. the is will as factory. million, that labor, a XXX $XXX and touch components, that loss losses maybe block plus XXXX, of in included remaining component, production to remaining work extended those cost. the XXXX. of Tom aircraft both our the of XXXX we the be to XX% The quarter when the XXXX, reworking deliveries we fourth But in forward a

included the results. it that that and latest the XXXX. XXXX. is in in isolated reflected of cost know kind five, was we to change, it free in cash will XX% of into quarters. means extends The reported be again block schedule flow It spent So, that XXXX, our now financial you a loss. half that our five our forward It's rest cash of in in is and cost

you increase delivered, But time, know be working getting get this unit And our our program, talk we're so, know line closely you us. that'll very price once is next you for But XXXX, you good to XXXX about there. has you airplane they fixed at worth it know same roughly block which with two the customer, know, on that on know It years a number insurance of depreciation, impact of costs XXXX, the extended block. by now almost by our years’ includes property that point unload had in that and you like two significant taxes, units.

know you lot of a booked. all on got But It's It's we've it's So fort our all us. headwind it in captured. losses.

helps George. that hopefully So

Thomas Gentile

as as of I the Yeah. say Those analysis. all the the as Mark loss, well rework Ford engineering forward rates George lower And said, the into would incorporated and production are losses XXXX. part were already in

production likely And to this so be view we've taken the a of year. are what rates pretty conservative

some the we're to XXX Spirit we XXX for have of mentioned, regard and just was has the With units, line We that packages the Boeing. with about XX% that and claims do the on on we're communicating. on anticipating fewer XX work complete work packages for any discussed of rework the provides those. XXX I look XXX that undelivered I claims, say last you some your what that it not that Spirit provides of been do in this the in that with with back XXXX chipsets even year, we've in to question if know XXX, XXXX will time Boeing kind in You delivered

losses that Boeing's last QX that I'd all own that in with not we -- are the deliveries, so in year the sole rework factories, took is of with not in reflected our forward the that, and our in cause the Spirit Boeing What them. XXX Now, people mostly claims Boeing own have for we that we're but close all XXXX. communication rework we’ll and with is expense doing to cost say the we in on of at delays stay for discussed

Operator

Herbert comes of next The from question Ken RBC.

Please line Your open. ahead. is go

Ken Herbert

I wanted Tom. ask of the question I about chain. and Hi, Thanks if Tom, third Mark quarter. see relative supply I just for to the on. me a letting could, sort afternoon, to good wanted to

incremental guess the continue I the greater are suppliers on looking maybe would from in more chain. of If importantly, are XXX, guess support you there there the issues into go highlight supply on any financial supply be support I you've eventually to where and chain or you'd around, need incremental maybe the risk, capital either a pressure And that inject XXX, if you any to as the as might supply delays little any seen rate? areas, more rates chain specifically XXX to areas might where expect the the up

Thomas Gentile

Well, Ken, some chain like some in supply ports. answer is we seen everybody the Right. pressure the on have global

more the So, a California tend backed now. bit example, be right up for ports to little

and that So out coming Korea, we others. we of suppliers the Malaysia some Asia in Indonesia have in products South amongst and of have

We even that cost base, have some and you on rates about a minor increase seen if a even if look it’s impact business in total go but relatively at our if as bit. freight it pressure freight of the a some part quite X% rates, total up some, goes total it’s of our cost so up

lot that in up Asia them folks we've shipments things Korea the of California parts is get doing, a consolidated say from and one aircraft example, the air South over is from we to where and of load ports some LA basically One particularly on for and here. can doing been skip

that. able been to do we've can we So, that demonstrate

many supply we the make we up, chain are sure opportunities. go we're very working access As looking parts. to at rates cases, entire sourcing to the across closely In that dual have

fabrication you for significant we we looking have we're provide insource get so know, to and backups if things we local into As capability can internally, a suppliers trouble.

a So, those to disruptions ports. we're to supply have to that we're looking one suppliers world in actually we can supplier in mitigate team with lead and President situations development any the We we the anywhere work situations field, actively actively deploy potential the large things. appointed as of working all Vice and fairly we a at new see is the

of and much spending the because that putting expect program that's mitigation. lower seeing lot place where XXX, pressure risk. in them we where to have. XXX Obviously, I and dual for most of a the much it's are lower so year. we And source this source That's we're in some we're rates less the is the it's biggest of in we some remain to experience don't we're time the that so. mean, content, plans proactively so either or

So as anticipating we're not there. much pressure

Ken Herbert

great, chain, if maybe much XXX domestic could internationally if do just maybe much quantify what you just of how from is That's roughly? And supply your how sourced suppliers versus you

Thomas Gentile

domestic Right. and big because a to on Well, we just XX% Kansas, than lot region. some still source more suppliers Oklahoma of in of domestically even XXX, the them we happened have our be

we source from is But coming suppliers. still, our international it's most domestically. of So do supply --

Operator

from The Cowen. of comes Rumohr next question von Cai

Your open. go Please line ahead. is

Cai von Rumohr

in you of Where us -- part Yes. now? you're versus many rate Thanks fuselages to you call, how your some of expect give missed stored I could is have profile of the as rate be the yearend? i.e., facilities the so you much, of the how at fuselages early and your on stored Where XXX, kind I should up? of apologize. now? terms by the of think but the of where how And are we you much inventory the Boeing moving

Thomas Gentile

did morning, mention Sam point up are XXX At we Well, one XX this to Right. broken we that we're barrier. at units were so XXX. the

on Boeing we can burn off lagging rates, we And that so inventory. are said, production as we

we ramp. is to longer aircraft will that - we we no point, to a year-end the by buffer, when buffer a storing become of to permanent and them a system. production XX, wrapping which when of off plan inventory Our cushion burn the level the But out will get to be

of of now, expect Right the street be the at quarter empty. So a by we're the pretty much the into quarter end third to rate XX. ramp across fourth we

XX. You heard a on rate Boeing's call of about at they're that

that will them about inventory burn rate to that those lower terms same by of So And we they to that's the over exactly And rates we them that stay at are. then X that re-sink the that's rate at are what with we'd a said we whenever will aircraft time. burn off always and Boeing occurs. in then forward, we is where down is like until going

Cai von Rumohr

so Thanks Excellent. much.

Thomas Gentile

happen And expect will that of Cai. that will yeah, year. that of – – happen the by the Thanks, re-sinking end re-sinking that kind will

Operator

The Hunter Wolfe next comes Keay from question of Research.

go ahead. Your line Please is open.

Hunter Keay

flow is payment Boeing? breakeven there free after Am just a cash incorrect me giving you'd $XXX just targeting breakeven were for quick I improvement just clarify to that free I on flow that quarter, Are want said Thanks million I targeting Hey. an ones. flow the couple before cash XXXX. question for of a or last to commentary? cash thought free payment. in you you

Mark Suchinksi

– it's it's No, still $XXX after million.

Hunter Keay

After.

Okay. projects, development million. All And of Tom, realm? mentioned over Thank the are and defense right. you outside then that How those $X are the XX many you. aerospace

Thomas Gentile

they're defense. projects. defense all They're aerospace Well, in and all

Hunter Keay

right. All Okay.

about… You're thinking not

Thomas Gentile

& So Pardon? it's them all Defense of Space. are

Hunter Keay

sort wondering was I of… if some were there

Thomas Gentile

Could I that, did you repeat hear?

Hunter Keay

like market-type some I wondering projects. was just thinking development concept were adjacent sort you of Sorry. of if basically and Yeah. these about some

Thomas Gentile

space It's adjacencies. No pure and all work. yeah. Oh, defense

Operator

of from question Stanley. Kristine comes Liwag Morgan The next

ahead. go Your open. line is Please

Kristine Liwag

what one provide was, could what you charge that if entail? little program. the Thanks. And is you it defense Tom bit detail you mentioned, a you or that talking Mark, just about where that confidence? get more on non-classified And share really a exactly it's Can time?

Thomas Gentile

do as But forward. to don't to thing Yes. To to be honest, fix that, we you a clarify we to it It unit. going single know, Kristine. and and it's just it and refine really on an bit a that expect rework. a I'll a rework we We'll view took that issue do. It's have conservative a some repeat. of was we'd it take we we're go have one-off was that, more

Kristine Liwag

there you the and for defense with team you related Great. summer? we here vertical is forward? you that the should we what's grow program business, how list as And think and which with then future should margin your normalized about this that going about And wins is upside to think been mentioned,

Thomas Gentile

which defense Right. by Well, we to defense, $X billion said, margins, get want are we XX%. say typical for a XXXX, we as to to XX%

saying like programs the core those XX%. or P-X specialty we then the some We've of question, plus. cost to and be as are So, look earlier, can got type asked a tend if are in programs, classified or margins I defense, got Peter you kind XX% have bit the as those think those KC-XX, be a to defense I the higher was typical our development and we've this little programs mature of CH-XXK phase, at margins. But which

to XX% on saying defense we're XX% going overall, So, forward.

And are team, lift, getting decision, vertical be that It's ready we for program program, not is slippage And outlook. future March the the on communicated the Perhaps FLRAA they're there's which a there June. in those assault that, Hawks, future as only on the some have numbers but for are Mark this the field. sometime aren't into for program. of is the units Bell the the Black Now in by VXXX. in is in X,XXX the to to the on long decision year, said, the about some going in Valor expected, things the aircraft. only built work going is that replacement development I they're our think was as our range XXXX maybe forward make on investment it outlook But the this which

it forward So included go a not very program in financials. very if and but our that's win to package forward, big would be a our program that's current they were would it big work going

Operator

Ron from of America. The of question Epstein comes next Bank

open. line Your go ahead. Please is

Ron Epstein

Yeah. Good morning.

Thomas Gentile

more We Ron. haven't talked

Ron Epstein

proceed little about profitability and the how program you the in will talked you to the AXXX the think those maybe detail? that much us program a more Where of other of airplane rates over time? go program. expect Could through walk you with [indiscernible] exception

Thomas Gentile

middle about be would that by at XXXX per indicated Airbus we're at around has AXXX, they that right aircraft on decade, Well, XX. Right. now. of four the month

So QX when that's know, our of $XXX to in by it XXXX we up breakeven of rate of did about but said when to of last program a And XX%. get trajectory. kind they we loss the basically million as open you would get have that forward we year

So, programs than what's try built to but now. core our that's to into right got in that we've is better that into what's do financials. place Obviously, built our financials

Ron Epstein

from And a profitability aerostructures anytime word acquisition components the than their get Bombardier of you where XXXX? sooner do

Thomas Gentile

the is one Well, aftermarket. places, two

this and at did aftermarket from good very Mark was is that mentioned lot the margins. of So, year that acquisition, that the about $XXX million, Bombardier come a

you So, north it's saw XX%. that of

Bombardier The but little jets. to a business other margins. those profitable Bombardier. area a of that areas because recover, good those COVID bit rates for we suffered obviously those the are normalize. at now I are But expect bit margins. of immediately the is We are two their as acquisition inherit with quite largest did of business We're one positive suppliers work jet and of

Operator

question comes of next The from Securities. Michael Truist Ciarmoli

Please Your open. line is ahead. go

Michael Ciarmoli

I labor inflation's did are mean, to pressures, then people But the thinking XX.X%. to but wondering three good to both we what get if that don't raw me on. to morning, labor about sticking at going like. have know don't over plan yeah, a of guess just chain specifically you think guys. I was Ken rehire I I inflationary we get back crystal think around how looking to you I XX.X and impact and that X,XXX years still the was % going and and kind Tom, inflation about just you so ball, to can for margins, supply that's guys we look materials thinking asking go and Hey, you what Thanks availability market labor next have can

Thomas Gentile

The answer is do. yes, we

Let aspects me through that go two of the question.

some a and So, in retirements other availability, X,XXX about terms We've longer. least wouldn't of to full. recall took labor Wichita. people left of did a already X,XXX give A mid-year X,XXX that'll or in recalled still be part of in so about we number have program, people you take available we off sense, just of permanent in those. think and they pool, about retirement at us the the We perhaps through laid

this our But we the the still tap as by we recall we're good pool availability expect is and locations the and the year, in we in to So, US. in everybody labor well pretty should good other news of recalled the have process. in certainly Wichita end is a because have good

can need buying to a had. at just you The know, don't productivity inflation, and bigger more. obviously X% we supplier, with X as back Boeing indirect come cost, is about we number is that concern, bit if we material, Airbus me and direct and looking of lot have a but consortia improving our made our at regard components, raw then more parts. we're to of a material fortunate And there that raw productive raw only of be you we're different you the the a Now, cuts much that's as labor look labor cost. we obviously so Tier is as know, we buy a let through a say let as material add lot is me you the and on But

it's Boeing. we those Airbus, it's and with fairly for locked tend for be particularly So benefit -- and huge TMX TMX, know that volumes the buy -- you They Boeing, at and prices on that. to side, from

a by have working good raw buying And Boeing cost to that so manage feel and Airbus with consortia. material way we we the through their

it about those chunk the And that contracts. done we've have a of big there our parts we what cost. back from chain in put lot typically our On of that's is is a suppliers now back from to of place supply XX% represents come

on with example our Boeing program for XXXX. to with So the was contract up pricing XXX

suppliers offered and ability took during the pandemic So big lot our particularly of the of out XXXX that we them it lot put a to up. contracts to a

have a our cost. to a contracts direct back with big on chunk of hedge give suppliers, back which essentially inflation natural And so part our for us we

provided billion. suppliers $X contract and during In to closely And extensions our up XXXX. to added total XXX suppliers. a very We with support work it about pandemic. over the so were up to that of we lot these

we a back on hedge back to inflation. that So had

in way the of So managing different that's we're some inflation the buckets.

Operator

comes Noah of Goldman The from next Sachs. Poponak question

Please go open. is line ahead. Your

Noah Poponak

in anticipating you are sets chip shipments XXXX? MAX XXX many how so everyone. Hello,

Thomas Gentile

you aircraft they will per XX as up Boeing indicated Well, that to early Right. month get XXXX. know in has

And what so them will with depending rate they established. work we on

get to they to commitments customer. And of and we'll going at do market our and it are look the the any make We think We before to don't they're understand with same. want ahead customer. out align trying our I just

Noah Poponak

for think that XXX. Tom, of be you your could last indicated range the in I ships this quarter had to year XXX

or lagging unwinding in XX XX to if before full link months the for until year, a that they’re zone you're few stayed up even even them you've just with the break If inventory a they Boeing there about. of by few and for be you you XXX the here five sorry month a would for months for talked

range you So just over update it quarter? last last maybe Can put that quarter. and you you from gave XXX that range

Thomas Gentile

they just and the burn to times whole across and is Boeing would math and XX so XX let's XX did said wanted a if down them street. there our said XX that we stayed XXX the for inventory equation Well, say, at in we be we year, were

are first for it's but ahead to scenario might and very to quarter into they're that numbers that on just the and the back watching really where and can just we're talked but it really that a going a probably more year. everybody So to in the always decisions going the guidance they of And well. second give really any the the flux, XXX in gets XX get decision, public as carefully to so year. do you to from with is provided on the the as like be things about equation, think said precisely in until We're going not our best still XXX still they deliver to this direction us few difficult give range, math and you months, think they're it's really waiting now XX running right quarter, early we get just in indicated market transparent for as they customer. Boeing in What right? they've They what making that's going minus us us It's XX. above on -- our is it's for that in And of can narrowbody makes XX, the that we what customer XX. and what next half XXXX was said they've for we're provide the to haven't outlook Boeing depends we I they're difficult is that guys.

you. And I to so, the you information, want know we provide want although to really it

need further direction from Boeing. we I think

are quarter. we relates we've really precise we we we as information, provide give of you and got past. know another it have can when like it too before All we'll do to will where it think to in update next here us we get things And always the going you solidly,

Noah Poponak

fair. Yes. That's flow normal margin very relatively XXXX, cash Is a free year?

Thomas Gentile

But that, mean, rates, I based the particularly say that's exactly on we're expecting. I of yes, would MAX. it kind course, what depends narrowbody production outlook, on of

Mark Suchinksi

of know, recovery you things, we the market is don't get to ahead We but want coming. to Yeah.

I it will says, think isn't as bullish cash if Spirit. for be very everybody as even year good it a

Noah Poponak

the but have where in stay it situation to back Okay. now And I plan -- of Or that about the narrowbody XXXX. sorry the before at -- you're just be on improved? just we're this, point to is or half now time call the will I decisions made overall worsened has leave

specificity your of them lessened of wanting to the ability because to discuss So be of ahead with customer. not has your nature

Thomas Gentile

we XXXX. here would I has nothing in say changed. And Yeah, are

we don't what their that. outlook they outlook. has Our get get they their what about don't to and we same. changed It's the ahead customer want has in still expect of given given indications about to that. and want and of is, indications and what what nothing the expect outlook But ahead has fundamentally is,

Mark Suchinksi

You know, I would say the latter.

obviously... know, You

Noah Poponak

Yeah.

Okay.

Thomas Gentile

...things Okay? all a move around right? bit,

Noah Poponak

Yeah, Thanks sense. much. so Yes. that makes

Operator

Seth comes next The JPMorgan. of question Seifman from

ahead. go Please open. is line Your

Seth Seifman

happen Tom, of think Thanks as time that of there's those about morning. and sticking good one segments now targets inorganic the question, mentioned more for you production about the component? of is Thanks, totally rates understanding you've regard targets and know, that the before, just to cash start are getting long component of you inorganic levels know, there I with I to reaching there over and opportunistic? before need around to things probably flow to kind or levels like, kind we term. long-term that have over guess think to Are certain we morning. it guess, the is leverage -- off -- you this kind that, Or or

Mark Suchinksi

they when I happen available. know, happen they actionable deals and they're mean, you become when as Well,

of ideal So, how accomplish look cash. was our you be right we met know, and if would were the lots deal could up, financial wait everything it. of that capacity world, as was could be But strategic I if to and to obviously have M&A, it generating But at fully available we came until hurdles. came fund We to we better an recovered ways if available in But do deals, you and would they're everything prepared and know, world we'd you've stable mean, we opportunities do are up. in get again, they deals when the and got back. to move.

Operator

There call. are therefore no further today's concludes questions. Thank This for you joining.

You lines. may now your disconnect

Spirit AeroSystems (SPR) 2 Feb 222021 Q4 Earnings call transcript