Boeing (BA)’s $8.4 Billion Supplier Buyback Keeps Turning Up New Costs

On September 3, The Wall Street Journal reported that Boeing reported discovering significant additional liabilities at Spirit AeroSystems following its $8.4 billion acquisition in December 2025. These liabilities now exceed identifiable assets by roughly $1.9 billion. This includes $1.52 billion in off-market customer contracts, where Spirit agreed to terms less favorable than current market rates.

These losses, however, do not appear on Boeing's income statement due to acquisition accounting rules and are instead recorded in footnotes tied to the deal. Boeing purchased Spirit's factories, which it had sold in 2005, as part of a strategy to outsource production. Boeing's stock has fallen by more than half since its peak in 2019.

Despite these challenges, the company reported a 14% increase in commercial deliveries to 171 aircraft and positive free cash flow in the second quarter. The acquisition has also led to quality improvements, with a 45% reduction in fuselage defects at the Wichita facility. However, the newly discovered liabilities still represent a substantial cost for Boeing, with losses exceeding $1.9 billion.

The acquisition's true cost remains uncertain due to provisional purchase price allocation and potential additional adjustments. While the firm has made progress in production, quality, and cash generation, it still faces significant risks and execution problems, including a $428 million net loss in the second quarter.