Business Analysis of Spirit AeroSystems

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Spirit AeroSystems

SPIRIT AEROSYSTEMS

Business Overview

Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs, manufactures, and supplies commercial aero structures worldwide. Spirit AeroSystems Holdings, Inc., through its subsidiaries, operates as a commercial aerospace original equipment manufacturer worldwide. The company operates through three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs); and offers related spares, as well as maintenance, repairs, and overhaul (MRO) services. The Propulsion Systems segment offers struts/pylons; nacelles, such as thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as related spares and MRO services. The Wing Systems segment provides wings and wing components comprising flight control surfaces; and other miscellaneous structural parts primarily to aircraft OEMs, as well as related spares and MRO services. It also offers low observables, including radar absorbent and translucent materials; rotorcrafts, including forward cockpits and cabins; and other military services, such as fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

Spirit AeroSystems

Spirit AeroSystems


R&P Rank: 400
Sector: Aerospace and Defense
Industry:Aerospace Products, Parts, Systems and Services
H.Q Location:Kansas
Website: www.spiritaero.com
Company Address:
3801 SOUTH OLIVER, WICHITA KS 67210
Ph:316-526-9000

Business Analysis of Spirit AeroSystems

The Aerospace and Defense Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Spirit AeroSystems compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Spirit AeroSystems to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Spirit AeroSystems with an interactive chart.

  1. Revenue Growth: Spirit AeroSystems reported a revenue growth of 2.2% year-on-year during 2016. Aerospace Products, Parts, Systems and Services Industry grew at 0.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Spirit AeroSystems spent 85.4% of its total revenues on COGS. Aerospace Products, Parts, Systems and Services industry average (COGS share of revenue) in the same period was 78.4%
  3. R&D share of Revenues: As a percentage of revenue, Spirit AeroSystems spent 0.4% of its total revenues on R&D. Aerospace Products, Parts, Systems and Services industry average R&D spending in the same period was 2.7%
  4. SG&A share of Revenues: As a percentage of revenue, Spirit AeroSystems spent 3.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Aerospace Products, Parts, Systems and Services industry average SG&A spending in the same period was 8.3%
  5. Inventory share of Revenues: As a percentage of revenue, Spirit AeroSystems spent 22.3% of its total revenues on Inventories. Aerospace Products, Parts, Systems and Services industry average Inventory spending in the same period was 25.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Spirit AeroSystems invested 8.5% of its total revenues on Accounts Payable (A/P) Aerospace Products, Parts, Systems and Services industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Spirit AeroSystems invested 9.7% of its total revenues on Accounts Receivable (A/R). Aerospace Products, Parts, Systems and Services industry average Accounts Receivable investment in the same period was 18.0%
  8. PP&E share of Revenues: As a percentage of revenue, Spirit AeroSystems invested 29.3% of its total revenues on Property, Plants, and Equipments (PP&E). Aerospace Products, Parts, Systems and Services industry average PPE investment in the same period was 15.2%
  9. Intangibles share of Revenues: Spirit AeroSystems Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Spirit AeroSystems Net Margins in the year 2016 were 6.9%. Aerospace Products, Parts, Systems and Services industry average Net Margins in the same period were 7.2%

Sector and Industry Association of Spirit AeroSystems

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Spirit AeroSystems is associated with Industrials Sector Group, Aerospace and Defense Sector, and Aerospace Products, Parts, Systems and Services Industry.

Aerospace and Defense sector is comprised of the following industries: Aerospace Products, Parts, Systems and Services; Military and Defense. The definitions for each of the industries is as follows:

  • Aerospace Products, Parts, Systems and Services industry includes manufacturers, assemblers, distributors and service providers of aerospace and aircraft parts primarily used in the commercial or private air transport.
  • Military and Defense industry includes producers of components and equipment for the defense industry, including military aircraft, radar equipment and weapons, drones, space and security systems. Military and Defense companies also offer military shipbuilding, submarines, amphibious assault ships and nuclear services. Arms and weapon companies offering consumer firearms are included in the specialized consumer goods.

Industry Ranking of Spirit AeroSystems

With $6.8 billion revenues, Spirit AeroSystems ranked number 7 of all the companies in the US Aerospace Products, Parts, Systems and Services industry. There were a total of 32 public companies in the US Aerospace Products, Parts, Systems and Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Aerospace Products, Parts, Systems and Services industry by revenues during 2016 were:

  1. Boeing ($94.6 billion)
  2. United Technologies ($57.2 billion)
  3. General Dynamics ($31.4 billion)
  4. Northrop Grumman ($24.5 billion)
  5. Raytheon ($24.1 billion)
  6. Textron ($13.8 billion)
  7. Spirit AeroSystems ($6.8 billion)
  8. Rockwell Collins ($5.3 billion)
  9. Triumph Group ($3.9 billion)
  10. TransDigm Group ($3.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Spirit AeroSystemsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of spirit-aerosystems

Northrop Grumman (NOC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Northrop Grumman Corp with $25 billion revenues in the year 2016 was the number 4 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Northrop Grumman and identify growth and cost optimization opportunities of Northrop Grumman

Raytheon (RTN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Raytheon Co with $24 billion revenues in the year 2016 was the number 5 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Raytheon and identify growth and cost optimization opportunities of Raytheon

Textron (TXT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Textron Inc with $14 billion revenues in the year 2016 was the number 6 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Textron and identify growth and cost optimization opportunities of Textron

Rockwell Collins (COL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Rockwell Collins Inc with $5 billion revenues in the year 2016 was the number 8 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Rockwell Collins and identify growth and cost optimization opportunities of Rockwell Collins

Triumph Group (TGI) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Triumph Group Inc with $4 billion revenues in the year 2016 was the number 9 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Triumph Group and identify growth and cost optimization opportunities of Triumph Group

TransDigm Group (TDG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

TransDigm Group Inc with $3 billion revenues in the year 2016 was the number 10 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of TransDigm Group and identify growth and cost optimization opportunities of TransDigm Group

Revenues Analysis

Spirit AeroSystems (SPR) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Spirit AeroSystems Holdings, Inc. (SPR) from 2012 to 2016. Spirit AeroSystems generated a total of $6.8 billion revenues during 2016. Spirit AeroSystems reported a revenue growth of 2.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Spirit AeroSystems (SPR) Revenues And Revenue Growth From 2006 To 2016

This report provides the last eleven years revenues and revenue growth of Spirit AeroSystems Holdings, Inc. (SPR) from 2006 to 2016. Spirit AeroSystems generated a total of $6.8 billion revenues during 2016. Spirit AeroSystems reported a revenue growth of 2.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Spirit AeroSystems (SPR) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Spirit AeroSystems Holdings, Inc. (SPR) revenue growth with Aerospace Products, Parts, Systems and Services industry growth during the last five years from 2012 to 2016. Spirit AeroSystems reported a revenue growth of 2.2% year-over-year during 2016. The Aerospace Products, Parts, Systems and Services industry growth was 0.8% year-over-year during 2016. Spirit AeroSystems growth was faster than the industry during 2016.

Profit Analysis