Spirit AeroSystems (SPR) announces an Advance Payments Agreement with Boeing (BA), in which Boeing has committed to pay Spirit, as advance payments, up to a total of $350M to produce Boeing products at the rates required by Boeing. Boeing intends these payments to address Spirit’s high levels of inventory and lower operational cash flows, decrease in expected deliveries to Boeing and higher factory costs to maintain rate readiness, and lingering effects brought on by the recent strike by Boeing employees. Per terms of the agreement, Spirit must repay 25% of the advance to Boeing on April 30, 2026, June 30, 2026, September 30, 2026, and December 31, 2026.
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