Financial Data and Key Metrics Changes - Revenues for the quarter were $3.6 billion, an increase of 5% or $175 million from the same quarter last year [2] - Segment profit was $357 million, up 26% or $73 million from the third quarter of 2024 [2] - Adjusted income from continuing operations was $1.55 per share, compared to $1.40 per share in the previous year [2] - Manufacturing cash flow before pension contributions totaled $281 million, compared to $147 million in the same quarter last year [3] Business Line Data and Key Metrics Changes - Textron Aviation revenues were $1.5 billion, up 10% or $138 million from the third quarter of 2024, driven by higher aircraft revenues and aftermarket parts [10] - Bell revenues were $1 billion, up 10% or $97 million from the previous year, primarily due to higher military revenues [11] - Textron Systems revenues were $307 million, up 2% or $6 million from last year, with an increase in backlog of about $1 billion [12] - Industrial revenues were $761 million, down $79 million from last year, mainly due to the divestiture of the power sports business [12] - Textron eAviation segment revenues were $5 million, down from $6 million in the previous year [12] Market Data and Key Metrics Changes - Textron Aviation's backlog ended the quarter at $7.7 billion, reflecting strong demand [6] - Bell's backlog increased to $8.2 billion, up $1.3 billion from the prior quarter [11] - Textron Systems backlog ended at $3.2 billion, an increase of $980 million from the previous quarter [12] Company Strategy and Development Direction - The company announced the appointment of Lisa Atherton as the new President and CEO, effective January [4] - Textron Aviation is focusing on strong growth in aerospace and defense businesses, with significant certification activities and new product launches [5][7] - The company plans to eliminate the Textron Aviation segment as a separate reporting segment, realigning aviation business activities across Textron Aviation and Textron Systems [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand across the aviation sector, with improving margins and a robust product portfolio [19][20] - The company reiterated its full-year adjusted EPS guidance in the range of $6 to $6.20 and manufacturing cash flow expectations of $900 million to $1 billion [14] - Management acknowledged ongoing supply chain issues but noted improvements and a positive outlook for achieving revenue targets [46][48] Other Important Information - The company repurchased approximately 2.6 million shares, returning $206 million in cash to shareholders during the quarter [14] - The adjusted effective tax rate for the third quarter was 25.5%, with an expectation of approximately 21% for the full year [13] Q&A Session Summary Question: Update on MV-75 program and cost profile - Management indicated that the acceleration of the MV-75 program will not change the near-term cost profile, focusing on basic aircraft parameters [16][17] Question: Highlights on aviation demand - Management noted strong retail demand across the entire aviation portfolio, with improving margins and significant certification activities [18][19] Question: Update on MV-75 program and contract signing - Management clarified that the MV-75 program is primarily cost-plus development, with low risk in bringing forward LRIP units [24][25] Question: Long-term margin targets for aviation - Management stated that volume is the biggest lever for improving margins, with steady bookings and strong demand [30][31] Question: Supply chain impact on revenue forecast - Management acknowledged ongoing supply chain issues but expressed confidence in achieving the $6.1 billion revenue target [46][48] Question: Unmanned portfolio performance - Management reported strong performance in the unmanned systems segment, with growth expected from new developments [62][63] Question: Portfolio reevaluation post-management change - Management confirmed ongoing evaluation of the portfolio, with no immediate plans for significant changes [70]

Financial Data and Key Metrics Changes - Revenues for the quarter were $3.6 billion, up 5% or $175 million from the same quarter last year [3] - Segment profit increased to $357 million, up 26% or $73 million from 2024 [3] - Adjusted income from continuing operations was $1.55 per share, compared to $1.40 per share in the same quarter last year [3] - Manufacturing cash flow before pension contributions totaled $281 million, compared to $147 million in the same quarter last year [3] Business Line Data and Key Metrics Changes - Textron Aviation revenues were $1.5 billion, up 10% or $138 million from 2024, driven by higher aircraft revenues and aftermarket parts [14] - Bell revenues were $1 billion, up 10% or $97 million from 2024, primarily due to higher military revenues from the MV75 program [15] - Textron Systems revenues were $307 million, up 2% or $6 million from last year, with an increase in backlog of about $1 billion [11][15] - Industrial revenues decreased to $761 million, down $79 million from last year, primarily due to the divestiture of the powersports business [16] Market Data and Key Metrics Changes - Aviation backlog ended the quarter at $7.7 billion, reflecting strong demand [8][14] - Bell's backlog increased to $8.2 billion, up $1.3 billion from the prior quarter [15] - Textron Systems backlog ended at $3.2 billion, an increase of $980 million from the prior quarter [16] Company Strategy and Development Direction - The company announced the elimination of the Textron Aviation segment as a separate reporting segment, realigning business activities to leverage existing sales capabilities [12] - A new President and CEO, Lisa Atherton, was elected, indicating a focus on internal leadership development [4][5] - The company continues to focus on strong growth in aerospace and defense businesses, with significant investments in new aircraft and technology [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across the aviation portfolio, with expectations for continued growth in aftermarket revenues [23][25] - The company anticipates a strong fourth quarter driven by increased volume and improved margins [65] - Management noted ongoing supply chain improvements, although some critical issues remain [55] Other Important Information - The company repurchased approximately 2.6 million shares, returning $206 million in cash to shareholders during the quarter [19] - Full-year adjusted earnings per share guidance is reiterated to be in the range of $6 to $6.2 [19] Q&A Session Summary Question: Impact of Army's announcement on MV75 program - Management indicated that the announcement would not change the near-term strategy, focusing on the basic aircraft's critical parameters [21][22] Question: Highlights on aviation demand - Management noted strong retail demand across the entire aviation portfolio, with improving margins and significant certification activity [23][24] Question: Update on MV75 program and contract signing - Management clarified that the program is largely cost-plus, with low risk in bringing forward LRIP units [28][30] Question: Long-term margin targets for aviation - Management stated that volume is the biggest lever for improving margins, with solid pricing feedback observed [40] Question: Supply chain issues and revenue forecast - Management acknowledged ongoing supply chain challenges but expressed confidence in achieving the revenue forecast [55][56] Question: Unmanned portfolio performance - Management reported strong demand for unmanned systems and ongoing development of new platforms [71][74] Question: Portfolio reevaluation with management change - Management confirmed that the company continuously evaluates its portfolio for potential acquisitions or disposals [80][81] Question: Demand shifts across business jets - Management indicated that current demand is stable, with capacity constraints affecting delivery mix [84][86]

Financial Data and Key Metrics Changes - Revenues for the quarter were $3.6 billion, up 5% or $175 million from the third quarter of 2024 [2] - Segment profit was $357 million, up 26% or $73 million from the third quarter of 2024 [2] - Adjusted income from continuing operations was $1.55 per share, compared to $1.40 per share in the same quarter last year [2] - Manufacturing cash flow before pension contributions totaled $281 million, compared to $147 million in the previous year [3] Business Line Data and Key Metrics Changes - Textron Aviation revenues were $1.5 billion, up 10% or $138 million from the third quarter of 2024, with segment profit at $179 million, up 40% or $51 million [11] - Bell revenues were $1 billion, up 10% or $97 million, driven by higher military revenues, while segment profit was $92 million, down $6 million [12] - Textron Systems revenues were $307 million, up 2% or $6 million, with segment profit of $52 million, up $13 million [12] - Industrial revenues were $761 million, down $79 million, primarily due to the divestiture of the power sports business [13] Market Data and Key Metrics Changes - Textron Aviation's backlog ended the quarter at $7.7 billion, reflecting strong demand [5] - Bell's backlog increased to $8.2 billion, up $1.3 billion from the prior quarter [12] - Textron Systems backlog ended at $3.2 billion, an increase of $980 million from the previous quarter [13] Company Strategy and Development Direction - The company announced the elimination of the Textron Aviation segment as a separate reporting segment, realigning aviation business activities across Textron Aviation and Textron Systems [10] - The appointment of Lisa Atherton as the new President and CEO indicates a focus on internal leadership development [4] - The company continues to explore portfolio optimization opportunities, including potential acquisitions or divestitures [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand across the aviation sector, with expectations for continued growth in aftermarket revenues [19] - The company anticipates a full-year adjusted EPS in the range of $6 to $6.20 and manufacturing cash flow before pension contributions between $900 million to $1 billion [16] - Management noted improvements in supply chain issues, although some critical suppliers still pose challenges [38] Other Important Information - The company repurchased approximately 2.6 million shares, returning $206 million in cash to shareholders during the quarter [16] - The adjusted effective tax rate for the third quarter was 25.5%, with an expected full-year rate of approximately 21% [15] Q&A Session Summary Question: Impact of Army's announcement on MV-75 program - Management indicated that the announcement would not change the near-term cost profile, focusing on the basic aircraft's critical parameters [18] Question: Highlights on aviation demand - Management noted strong retail demand across the entire portfolio, with improving margins and significant certification activity [19] Question: Update on MV-75 program and contract signing - Management clarified that the program is primarily cost-plus development, with low risk in bringing forward LRIP units [22][24] Question: Long-term margin targets for aviation - Management stated that volume is the biggest lever for improving margins, with steady bookings despite market uncertainties [27][29] Question: Supply chain issues and revenue forecast - Management acknowledged ongoing supply chain challenges but expressed confidence in achieving the $6.1 billion revenue target [38] Question: Unmanned portfolio performance - Management reported strong performance in the Aerosonde program and ongoing development of new unmanned platforms [46][48] Question: Portfolio reevaluation post-management change - Management confirmed that the company continuously evaluates its portfolio for potential acquisitions or divestitures [52]

Core Insights - Textron (TXT) reported quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.47 per share, and showing an increase from $1.4 per share a year ago, resulting in an earnings surprise of +5.44% [1] - The company posted revenues of $3.6 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 2.81%, but an increase from $3.43 billion year-over-year [2] - Textron has surpassed consensus EPS estimates in all four of the last quarters, while it has topped revenue estimates twice during the same period [2] Earnings Outlook - The sustainability of Textron's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.84 on revenues of $4.07 billion, and for the current fiscal year, it is $6.15 on revenues of $14.8 billion [7] Industry Context - The Aerospace - Defense industry, to which Textron belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

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October 23rd, 2025 The data in this package should be read in conjunction with the Textron earnings release and accompanying tables. Q3 2025 Earnings Call Presentation Key Data – Q3 2025 | | Q3 2025 | Q3 2024 | | --- | --- | --- | | Revenues | $ 3.6B | $ 3.4B | | Segment Profit | $ 357M | $ 284M | | EPS | $ 1.31 | $ 1.18 | | Adjusted EPS | $ 1.55 | $ 1.40 | | Manufacturing Cash Flow Before Pension Contributions | $ 281M | $ 147M | | Pension Contributions | $ 9M | $ 10M | © 2025 TEXTRON INC. 1 Forward-lookin ...

Financial Performance - Textron reported third quarter 2025 income from continuing operations of $1.31 per share, up from $1.18 in the same quarter of 2024[1]. - Adjusted income from continuing operations was $1.55 per share, compared to $1.40 per share in the prior year[1]. - Income from continuing operations for Q3 2025 was $235 million, up from $223 million in Q3 2024, representing a 5.4% increase[26]. - Adjusted income from continuing operations for the nine months ended September 27, 2025, was $793 million, slightly down from $794 million in the same period of 2024[26]. - Adjusted income from continuing operations for Q3 2025 was $277 million, compared to $265 million in Q3 2024, reflecting a 4.5% increase[39]. - Adjusted diluted earnings per share for Q3 2025 was $1.55, up from $1.40 in Q3 2024, representing a 10.7% increase[39]. - The company expects full-year 2025 GAAP earnings per share from continuing operations to be in the range of $5.19 to $5.39[4]. - The company expects adjusted income from continuing operations for 2025 to be between $1,105 million and $1,140 million, with diluted EPS projected between $6.00 and $6.20[39]. Revenue and Backlog - Total revenue for the third quarter was $3.6 billion, an increase of 5% or $175 million year-over-year[2]. - Textron Aviation revenues reached $1.5 billion, up 10% or $138 million from the previous year, driven by higher aircraft and aftermarket parts revenues[5]. - Bell revenues increased to $1.0 billion, a 10% rise or $97 million, primarily due to higher military revenues from the MV-75 program[9]. - Textron Systems revenues were $307 million, up $6 million from last year, with a segment profit of $52 million, an increase of $13 million[12]. - Textron's backlog increased by $2.2 billion, driven by Bell and Textron Systems[6]. Cash Flow and Assets - Manufacturing cash flow before pension contributions was $281 million, compared to $147 million in the same quarter last year[2]. - Net cash from operating activities for Q3 2025 was $348 million, compared to $208 million in Q3 2024, indicating a significant increase of 67.3%[31]. - Cash and equivalents at the end of Q3 2025 were $1.446 billion, up from $1.289 billion at the end of Q3 2024[33]. - Total assets as of September 27, 2025, were $17.381 billion, compared to $16.838 billion at the end of 2024, reflecting a 3.2% increase[29]. - Net cash from operating activities for the nine months ended September 27, 2025, was $629 million, compared to $561 million for the same period in 2024, a rise of 12.1%[41]. Capital Expenditures and Debt - Capital expenditures for the nine months ended September 27, 2025, totaled $210 million, consistent with $211 million in the same period of 2024[31]. - Long-term debt increased to $3.038 billion as of September 27, 2025, from $2.890 billion at the end of 2024, marking a 5.1% rise[29]. Shareholder Returns - Textron returned $206 million to shareholders through share repurchases in the quarter, totaling $635 million year-to-date[3]. Special Charges and Provisions - The company incurred $8 million in special charges related to restructuring actions in Q2 2025, primarily due to severance and contract termination costs[27]. - Special charges for Q3 2025 were negligible, compared to a charge of $1 million in Q3 2024[39]. - LIFO inventory provision for Q3 2025 was $36 million, slightly down from $37 million in Q3 2024[39]. - Intangible asset amortization for Q3 2025 was $6 million, consistent with Q3 2024[39].

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Core Insights - Textron Inc. reported third quarter 2025 income from continuing operations of $1.31 per share, an increase from $1.18 in the third quarter of 2024 [1] - Adjusted income from continuing operations for the third quarter of 2025 was $1.55 per share, compared to $1.40 per share in the third quarter of 2024 [1] - Overall, third quarter revenue for Textron increased by 5% [1]

Core Insights - Textron's chief executive Scott Donnelly will be succeeded by Lisa Atherton, an insider, effective January 4 next year [1] Company Transition - The leadership transition indicates a strategic move within Textron to promote from within, potentially ensuring continuity in company operations and culture [1]