Core Insights - V2X Inc. has announced a collaboration with Bell Textron Inc. to begin strategic planning for the U.S. Army's Flight School Next program, which aims to modernize Army aviator training [1][2] - The Flight School Next program is based at Fort Novosel, Alabama, and is essential for training all Army aviators, contributing to overall Army aviation readiness [2] - V2X will provide maintenance and readiness support for the Bell 505 helicopter, which is designed for efficiency and reliability in training environments [4] Company Overview - V2X specializes in integrating physical and digital environments to enhance mission readiness, optimize resource management, and improve security across various markets, including national security and defense [5] - The company employs approximately 16,100 professionals and leverages AI and machine learning to address complex challenges in operational domains [5]

Core Viewpoint - Textron Inc. reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of $1.28, exceeding estimates and showing year-over-year growth [1][9] Financial Performance - Adjusted EPS of $1.28 beat the Zacks Consensus Estimate of $1.17 by 9.4% and increased 6.7% from $1.20 in the same quarter last year [1] - GAAP EPS rose to $1.13 from $1.03 year-over-year [1] - Total revenues reached $3.31 billion, surpassing the Zacks Consensus Estimate of $3.25 billion by 1.9% and up 5.5% from $3.14 billion a year ago [2] Segmental Performance - **Textron Aviation**: Revenues increased 2% to $1.21 billion, driven by higher aftermarket parts and services, but operating profit decreased to $127 million from $143 million due to an unfavorable mix of aircraft sold [3][4] - **Bell**: Revenues surged 35.2% to $983 million, supported by increased military and commercial revenues, with profits rising 12.5% to $90 million [4][5] - **Textron Systems**: Revenues fell 3.3% to $296 million due to lower volume, but profits increased 5.3% to $40 million, aided by reduced R&D costs [5][6] - **Industrial**: Revenues declined 11.2% to $792 million, while profits slightly increased to $30 million from $29 million [6] - **Textron eAviation**: Revenues remained stable at $7 million, with a narrower loss of $17 million compared to $18 million last year [7] Cash Flow and Debt - Cash and cash equivalents decreased to $1.19 billion from $1.39 billion at the end of 2024 [8] - Operating cash flow used was $114 million, up from $30 million year-over-year [8] - Long-term debt rose to $3.04 billion from $2.89 billion [8] Guidance - Textron maintained its 2025 adjusted EPS outlook in the range of $6.00-$6.20, with the Zacks Consensus Estimate at $6.07, below the midpoint of the guidance [9]

Q1 2025 Earnings Call Presentation April 24th, 2025 The data in this package should be read in conjunction with the Textron earnings release and accompanying tables. Forward-looking Information Certain statements in this package and other oral and written statements made by Textron from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking st ...

Financial Data and Key Metrics Changes - Revenues for the quarter were $3.3 billion, an increase of $171 million or 5% from the previous year's first quarter [4][6] - Adjusted income from continuing operations was $1.28 per share, compared to $1.20 per share in the same quarter last year [5] - Manufacturing cash flow before pension contributions reflected a use of cash of $158 million, compared to a use of cash of $81 million in the previous year [5] Business Line Data and Key Metrics Changes - Textron Aviation revenues were $1.2 billion, up $24 million, with a profit of $127 million, down $16 million from a year ago [15] - Bell revenues increased by $256 million or 35%, driven by strong growth in military and commercial product lines, with a segment profit of $90 million, up $10 million [9][17] - Textron Systems revenues were $290 million, down $10 million, with a segment profit of $40 million, up $2 million [18] - Industrial revenues decreased by $100 million to $792 million, with segment profit unchanged at $30 million [19] Market Data and Key Metrics Changes - Aviation delivered 31 jets and 30 commercial turboprops, compared to 36 jets and 20 turboprops in the previous year [6] - Bell delivered 29 helicopters, up from 18 in the previous year [10] - Backlog for Textron Aviation ended at $7.9 billion, while Bell's backlog was $7.1 billion, and Textron Systems' backlog was $2.3 billion [16][18] Company Strategy and Development Direction - The company is focusing on ramping production in aviation to recover from previous disruptions and is optimistic about future growth [6][55] - The successful sale of the Arctic Cat brand is part of a strategic review to streamline operations [13][25] - The company is actively monitoring the impact of tariffs and trade issues, noting that most manufacturing is based in North America, which mitigates tariff risks [28][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment for aviation, despite some macroeconomic uncertainties [49][122] - The company expects continued growth in the Bell segment, particularly from military contracts and commercial helicopter deliveries [39][120] - Management reaffirmed guidance for full-year adjusted earnings per share in the range of $6 to $6.20 [23] Other Important Information - The company repurchased approximately 2.9 million shares, returning $215 million in cash to shareholders [23] - The adjusted effective tax rate for the quarter was 15.3%, with an expected full-year rate of 18% [22] Q&A Session Summary Question: Any further portfolio actions after Arctic Cat disposal? - Management stated there are no new announcements regarding portfolio actions but continues to evaluate the portfolio [26] Question: Impact of tariffs and trade war on business? - Management indicated that the company has not seen a material impact from tariffs due to USMCA compliance and localized production [28][31] Question: Demand environment in the private jet market? - Management noted that while some customers may pause due to uncertainty, overall order activity remains strong [49][50] Question: Updates on the Denali program? - Management confirmed that the Denali program is progressing well following the certification of the GE Aerospace Catalyst engine [64][66] Question: Demand environment for Kautex? - Management expressed uncertainty regarding global automotive demand but noted that Q1 numbers were consistent with expectations [72][73] Question: Updates on unmanned systems and R&D? - Management highlighted ongoing investments in unmanned systems and the importance of adapting to new demand vectors in defense [106][110] Question: Future of electric aviation technology? - Management acknowledged the potential for electrification in aircraft like the Caravan and is supportive of companies working in that space [134][139] Question: Current M&A environment? - Management continues to look for accretive M&A opportunities but noted that current market multiples are high [141][143]

Group 1: Earnings Performance - Textron reported quarterly earnings of $1.28 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, and up from $1.20 per share a year ago, representing an earnings surprise of 9.40% [1] - The company posted revenues of $3.31 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.86%, compared to year-ago revenues of $3.14 billion [2] Group 2: Stock Performance and Outlook - Textron shares have declined approximately 13.4% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.46 on revenues of $3.61 billion, and for the current fiscal year, it is $6.07 on revenues of $14.63 billion [7] Group 3: Industry Context - The Aerospace - Defense industry, to which Textron belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - First quarter 2025 net income was $1.13 per share, up from $1.03 per share in Q1 2024; adjusted net income was $1.28 per share, compared to $1.20 per share in the prior year[1][5] - Revenues for Q1 2025 were $3.3 billion, an increase of $171 million from $3.1 billion in Q1 2024[5][25] - Net income for the three months ended March 29, 2025, was $207 million, compared to $201 million for the same period in 2024, reflecting a year-over-year increase of 3%[33] - Adjusted net income for the three months ended March 29, 2025, was $235 million, slightly up from $233 million in the same period of 2024[38] - The outlook for 2025 projects net income of $955 million, with diluted EPS expected to be between $5.19 and $5.39[38] Revenue Breakdown - Textron Aviation's revenues were $1.2 billion, up $24 million from the previous year, with a backlog of $7.9 billion[7][9] - Bell revenues increased to $983 million, up $256 million from Q1 2024, driven by higher military and commercial revenues[10][12] - Textron Systems revenues were $296 million, down $10 million from the previous year, with a backlog of $2.3 billion[13][14] - Industrial segment revenues decreased to $792 million, down $100 million from Q1 2024, while segment profit remained unchanged at $30 million[15][25] - Textron eAviation reported revenues of $7 million with a segment loss of $17 million, slightly improved from a loss of $18 million in Q1 2024[16] Cash Flow and Operating Activities - Net cash provided by operating activities for the manufacturing group is projected to be between $1.2 billion and $1.3 billion for the full year[5][6] - Net cash from operating activities was $(124) million for the three months ended March 29, 2025, compared to $(7) million for the same period in 2024, indicating a decline in cash flow[33] - The company reported a manufacturing cash flow before pension contributions of $(158) million for the three months ended March 29, 2025, compared to $(81) million for the same period in 2024[31] Shareholder Returns - Textron returned $215 million to shareholders through share repurchases in the first quarter[3][5] Assets and Liabilities - Total assets increased to $16,942 million in March 2025, up from $16,838 million in December 2024, representing a growth of 0.6%[28] - Long-term debt increased to $3,038 million in March 2025, up from $2,890 million in December 2024, marking a rise of 5.1%[28] - Total liabilities increased to $9,667 million in March 2025, compared to $9,634 million in December 2024, reflecting a growth of 0.3%[28] Cash and Capital Expenditures - Cash and equivalents at the end of the period were $1,194 million, down from $1,386 million at the beginning of the period, a decrease of 13.9%[30] - The company reported capital expenditures of $56 million for the three months ended March 29, 2025, compared to $66 million in the same period of 2024[33]

Core Viewpoint - Textron Inc. is expected to report its first-quarter 2025 results on April 24, with a projected revenue growth of 3.5% year-over-year, despite anticipated earnings challenges due to restructuring charges and increased R&D expenses [1][7][8]. Revenue Performance by Segment - **Textron Aviation**: Expected to see revenues of $1,250.5 million, reflecting a 5.3% increase from the previous year, driven by steady customer demand and new product launches [2]. - **Bell Segment**: Anticipated revenues of $854.5 million, indicating a 17.5% growth year-over-year, supported by higher military sales and successful deliveries [4][3]. - **Textron Systems**: Projected revenues of $314.4 million, representing a 2.7% increase from the prior year, bolstered by higher sales volumes from the Ship-to-Shore Connector program [5]. - **Industrial Segment**: Expected revenues of $800.7 million, which would be a decline of 10.2% from the previous year, impacted by lower volumes in specialized vehicles and the suspension of powersports production [6]. Overall Financial Estimates - The overall revenue estimate for Textron in Q1 is $3.25 billion, marking a 3.5% increase from the same quarter last year [7]. - The earnings estimate is projected at $1.17 per share, reflecting a decline of 2.5% year-over-year [9]. Backlog and Earnings Prediction - Textron's backlog is expected to increase by 38.9% year-over-year to $19.06 billion, indicating strong future demand [9]. - The current Earnings ESP for Textron is -4.51%, suggesting that the company may not meet earnings expectations this quarter [10].

Core Viewpoint - Wall Street analysts anticipate Textron (TXT) will report quarterly earnings of $1.17 per share, reflecting a year-over-year decline of 2.5%, with revenues expected to reach $3.25 billion, an increase of 3.5% from the previous year [1] Earnings Estimates - There has been a downward revision of 1.7% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [1][2] Revenue Projections - Analysts estimate 'Revenues- Textron eAviation' at $10.56 million, a year-over-year increase of 50.9% [4] - 'Revenues- Manufacturing- Bell' is projected to reach $854.45 million, reflecting a 17.5% increase year over year [4] - 'Revenues- Manufacturing- Textron systems' is expected to be $314.37 million, indicating a 2.7% year-over-year change [4] - 'Revenues- Manufacturing- Textron Aviation' is estimated at $1.25 billion, a 5.3% increase from the prior year [5] - 'Revenues- Finance' is projected to be $15.24 million, up 1.6% from the previous year [5] - The consensus estimate for 'Revenues- Manufacturing' stands at $3.23 billion, suggesting a 3.5% year-over-year change [5] - 'Revenues- Manufacturing- Industrial' is expected to reach $800.65 million, indicating a year-over-year decline of 10.2% [6] Segment Profit Estimates - 'Segment Profit- Textron Aviation' is expected to be $139.39 million, down from $143 million reported in the same quarter last year [6] - 'Segment Profit- Bell' is forecasted at $81.34 million, slightly up from $80 million reported last year [7] - 'Segment Profit- Textron Systems' is predicted to be $39.99 million, compared to $38 million in the same quarter last year [7] - 'Segment profit- Industrial' is expected to be $32.43 million, up from $29 million reported last year [8] - 'Segment profit- Manufacturing' is projected to reach $275.15 million, compared to $272 million in the previous year [8] Stock Performance - Textron shares have decreased by 9.6% over the past month, contrasting with the Zacks S&P 500 composite's decline of 5.6% [8]

Core Point - Textron E-Z-GO LLC has launched a new "Reserve Now" program that allows customers to customize and order E-Z-GO vehicles online without visiting a dealership [1][3]. Group 1: Program Features - The "Reserve Now" feature enables customers to save time and energy by customizing their E-Z-GO vehicle with various options such as color, seating, lighting, and accessories [2][4]. - The ordering process involves visiting the E-Z-GO website, using an online vehicle builder, and placing a $500 deposit. The vehicle will be built to order and delivered to the nearest Authorized E-Z-GO Dealer for final preparation [3][4]. - Most orders are expected to be fulfilled within eight weeks, although some models may have longer lead times [3]. Group 2: Vehicle Models and Innovations - Customers can customize and order various E-Z-GO models, including Freedom®, Liberty, street-legal Liberty LSV, Express®, and Valor® [4]. - E-Z-GO plans to release new special-edition vehicles throughout 2025, featuring unique colors and special features, such as the Phantom limited edition [4][6]. Group 3: Company Background - E-Z-GO, founded in 1954 and part of Textron Inc. since 1960, is a leader in the design and manufacture of golf cars and personal transport vehicles, known for innovative sustainable electric-vehicle technology [6][7]. - The company offers a range of models, including RXV® fleet golf cars and the Liberty™, which is notable for its four forward-facing seats in a compact size [6].

Core Insights - The report provides a comprehensive analysis of Textron Systems' strategy amid a challenging global macroeconomic environment characterized by rising geopolitical tensions and potential trade wars under the Trump Administration 2.0 [2][3] - The global Aerospace & Defense market is experiencing a significant upswing due to increased defense spending driven by geopolitical conflicts and the resurgence of traditional powers, which poses challenges to the U.S.-led world order [3][4] - Textron Systems is focusing on the U.S. Army's modernization needs, particularly through its RIPSAW unmanned vehicle program, to capitalize on the growing demand for next-generation defense systems [4] Industry Overview - The global Aerospace & Defense market is in a major upswing phase, with defense spending reaching record levels due to geopolitical conflicts and the need for modernization of legacy defense systems [3] - The return of Trump to the White House is expected to further increase defense spending globally, impacting order intakes and backlogs across industry OEMs [3] - The world economic growth is projected to remain flat for 2025, approximately 400 basis points below the average GDP growth rate of the pre-pandemic 2010s decade [4] Company Strategy - Textron Systems is crafting strategies to navigate the emerging market landscape and capitalize on growth opportunities from surging global defense spending [4] - The company is actively involved in the U.S. Army's latest RCV program and is developing the RIPSAW M5 platform to meet rapid modernization needs [4] - The report includes a SWOT analysis and detailed insights into Textron Systems' strategic priorities and plans [8]