Spirit AeroSystems and Airbus amend agreement for $94 million additional support

Spirit AeroSystems Holdings, Inc. (NYSE:SPR) announced Monday that its wholly owned subsidiary, Spirit AeroSystems, Inc., and Airbus S.A.S. have entered into a third amended and restated memorandum of agreement. According to a statement provided in a Securities and Exchange Commission filing, the revised agreement was executed on July 11, 2025. The agreement comes as Spirit faces significant financial challenges, with InvestingPro data showing the company operating with a substantial $5.39 billion debt burden and negative EBITDA of $1.44 billion in the last twelve months.

Under the terms of the amended memorandum, Airbus S.A.S. will provide an additional $94 million in financial assistance to Spirit AeroSystems and certain subsidiaries. This brings the total support package from Airbus S.A.S. to $152 million. The funds are designated exclusively for use in relation to Airbus programs, as defined in the agreement. InvestingPro analysis indicates the company has been quickly burning through cash, with a concerning negative free cash flow yield.

The amended agreement fully replaces previous memoranda entered into on June 28, 2024, and subsequently amended on October 7 and November 8, 2024. Spirit AeroSystems and its subsidiaries serve as suppliers to Airbus S.A.S. and its affiliates under several contracts covered by this memorandum.

The agreement specifies that any assets purchased with the financial support provided by Airbus S.A.S. will be assumed by Airbus S.A.S. or one of its affiliates upon the closing of transactions outlined in a Stock and Asset Purchase Agreement dated April 27, 2025, between Spirit and Airbus SE (OTC:EADSY).

The disclosure regarding the amended memorandum of agreement is based on a press release statement included in Spirit AeroSystems’ SEC filing.

In other recent news, Boeing (NYSE:BA) will take over Spirit AeroSystems’ facility in Belfast, Northern Ireland, after efforts to find another buyer were unsuccessful. This development is part of broader negotiations between the two companies. In related news, Spirit AeroSystems is in the process of being acquired by Boeing, an all-stock transaction approved by Spirit shareholders and expected to close in mid-2025, pending regulatory approvals. The acquisition comes amid a recent incident involving a Boeing 787-8 Dreamliner, which crashed shortly after takeoff in India, leading to significant declines in the shares of both Boeing and Spirit AeroSystems. The crash remains under investigation, with Boeing stating it is gathering more information.

Additionally, John L. Plueger, a board member of Spirit AeroSystems, announced his decision to step down due to increased responsibilities at Air Lease (NYSE:AL) Corporation, where he serves as CEO. His departure will be effective at the company’s annual stockholders meeting in May 2025. Robert D. Johnson, Chairman of Spirit AeroSystems, praised Plueger’s contributions, particularly his role in securing the merger agreement with Boeing. These developments highlight ongoing changes and challenges within Spirit AeroSystems and its relationship with Boeing.

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