Spirit AeroSystems Holdings, Inc. (SPR) announced a new Advance Payments Agreement with Boeing Co. (BA) on Tuesday. This agreement stipulates that Boeing will provide an advance payment of up to $350 million to support the production of Boeing products at the required rates.
These advance payments are intended to address several operational challenges faced by Spirit. These include high inventory levels, decreased operational cash flows, a reduction in expected deliveries to Boeing, increased factory costs to maintain production readiness, and the ongoing impact of the recent strike by Boeing employees.
According to the terms of this agreement, Spirit will repay 25% of the advances on the following dates: April 30, 2026, June 30, 2026, September 30, 2026, and December 31, 2026.
As of now, Spirit's stock is being traded at $31.34, marking a 1.06% increase on the New York Stock Exchange.
