Spirit Occupies a Precarious Role Somewhere Between OEM and Supplier

Spirit AeroSystems is the largest independent aerostructures manufacturer. The firm produces fuselages, wing structures, and structures that house and connect engines to aircraft. Spirit’s revenue has traditionally been almost entirely connected to the original production of commercial aircraft, but Spirit has a growing military aircraft segment and recently acquired Bombardier's maintenance, repair, and overhaul business. Spirit's interim CEO since October 2023, Pat Shanahan, recently stated that diversification away from commercial aerostructures is not necessary for the firm to survive and no longer a priority. We forecast Boeing will contribute 60% or more of Spirit's revenue and Airbus around 25% in years to come.