Textron Earnings Call Transcripts
Fiscal Year 2025
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Fourth quarter and full-year results showed strong revenue and profit growth, led by Aviation and Bell, with record backlog and robust order flow. 2026 guidance projects continued growth, with significant investment in the MV-75 program and ongoing share repurchases.
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Q3 revenue rose 5% to $3.6B, with segment profit up 26% and strong growth in aviation and defense. Backlog and demand remain robust, supply chain issues are improving, and full-year EPS guidance is maintained. Leadership transition to Lisa Atherton as CEO announced.
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Second quarter revenue grew 5.4% year-over-year to $3.7 billion, with strong performance in aviation and Bell, and improved cash flow. Full-year EPS guidance is maintained, and cash flow outlook is raised, with margin improvement expected in the second half.
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Q1 2025 revenue grew 5% to $3.3B, led by Bell's 35% increase, while adjusted EPS rose to $1.28. Guidance for full-year EPS and cash flow was reaffirmed, with strong aviation and defense demand offsetting industrial softness.
Fiscal Year 2024
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Q4 2024 saw lower revenue and profit due to an Aviation strike and Industrial softness, but strong order activity drove backlog to $17.9 billion. 2025 guidance projects 7% revenue growth, higher EPS, and improved cash flow, with Aviation and Bell expected to lead gains.
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Q3 revenue rose to $3.4B, but adjusted EPS fell to $1.40 due to a five-week aviation strike, which also led to a lowered 2024 outlook. Bell saw strong growth from the FLRAA program, while industrial and auto markets remained soft. Share repurchases totaled $215M in Q3.
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Aviation backlog is strong with robust demand, though supply chain and labor issues constrain production. Bell's FLRAA program advances, but margin pressure is expected as cost-plus engineering replaces higher-margin manufacturing. Systems and Industrial segments face headwinds but anticipate growth from new programs and technology investments.
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Revenues and profits grew year-over-year, led by strong aviation and defense demand, while industrial faced softness. Aviation margins remained robust, with solid backlog and continued share repurchases. Supply chain and consumer market challenges persist.