Former Spirit Belfast plant saw 2025 losses balloon to $1.6bn
Significant increase in forward charges related to onerous contract provisions was responsible for much of the rise.
One–off charges of almost $1 billion drove Belfast-based Short Brothers – formerly owned by Spirit AeroSystems and, before that, Bombardier – to an eye-watering full-year pre-tax loss of $1.16 billion for the 12 months ended 31 December 2025.
Filed at the UK Companies House registry on 30 October, the figures cover a period that culminated in significant change at the business, principally its acquisition by Boeing in December that year, alongside the divestment of mainly wing-related work for the Airbus A220 to the European airframer.
By far the largest chunk of the exceptional items was a forward charge related to onerous contract provisions of $975 million, up from $260 million the previous year – a 275% increase.
Short Brothers says the change came on the back of a review of its contracts “to reassess the unavoidable costs to fulfil performance obligations”.
The upward revision was driven by the impact of “prolonged adverse global inflationary pressures, affecting energy, freight, raw material and other costs in addition to increased interest and labour costs,” the accounts state.
In addition, the company points to the impact of “supply chain disruptions” and increased component costs for the rise.
On top of which, following the 8 December acquisition by Boeing, the period over which future losses are forecast was extended from five to 10 years – in line with the US airframer’s own policy – resulting “in a significant increase in the onerous contract provision recognised at the reporting date”.
Other exceptional items included $10.7 million in warranty claims and $3.7 million in restructuring charges.
Following the divestment of the A220 wing and mid-fuselage work to Airbus Belfast, the majority of output from Short Brothers is focused on supplying aerostructures to business jet manufacturer Bombardier, which itself owned the company until its sale to Spirit in 2020.
Of the total $1.16 billion loss recorded by Short Brothers, up on 2024’s $504 million loss, it attributes $108 million of that to the now-divested A220 work: $10.5 million in operating losses, $81 million related to the disposal and $15 million in interest charges.
Turnover for the year stood at $917 million, up 14% on the $814 million it made a year earlier. However, around 50% of that figure – or $458 million – was accounted for by the Airbus work.
Net liabilities for the period also rose to $1.2 billion from $944 million in the prior year.
Despite the heavy one-off charges, the company points to its gross profit position of $43.4 million, versus $14.9 million in 2024.
Boeing has pledged its continued support for the business until at least October 2027, the accounts disclose. Based on that promise, plus cash-flow forecasts, the company continues to prepare its accounts on a ‘going concern’ basis.
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