Core Points - Textron Aviation Defense plans to assemble the Beechcraft M-346N in Wichita, Kansas, if awarded the U.S. Navy's UJTS contract, emphasizing its commitment to advanced jet training systems for the Navy [1][4] - The company expects to invest over $38 million to modernize more than 50,000 square feet of manufacturing space, creating approximately 100 direct manufacturing jobs in Wichita [2][4] - The Beechcraft M-346N is designed as a low-risk, operationally proven integrated training system, featuring advanced capabilities for naval training [3][5] Company Overview - Textron Aviation Defense has a legacy of supporting the U.S. government with training aircraft for over 85 years, highlighting its historical significance in Wichita [3][8] - The M-346N is equipped with advanced technology, including fully digital flight controls, a fly-by-wire system, and innovative safety features like the Automatic Ground Collision Avoidance System [5][6] - The U.S. Navy is expected to announce the contract award in January 2027, and Textron Aviation Defense believes it is well-positioned to meet the Navy's training needs [4][8]

Core Points - Danny Maldonado has been appointed as the president & CEO of Bell, effective January 4, 2026, succeeding Lisa Atherton who will take over as president & CEO of Textron Inc. on the same date [1][7] - Maldonado has a strong background in leadership roles within Textron, including his current position as chief commercial officer (CCO) of Bell and previous roles at Textron Financial Corp. and Bell's executive vice president of sales and marketing [2][3] - Textron Chairman and CEO Scott Donnelly emphasized Maldonado's proven leadership and success at Bell, highlighting the importance of his role during a critical time for the MV-75 program and ongoing investments in commercial helicopter programs [3] Company Overview - Textron Inc. is a multi-industry company with a diverse portfolio that includes aircraft, defense, industrial, and finance businesses, recognized for its brands such as Bell, Cessna, and Beechcraft [3] - The company reported revenues of $13.7 billion and a net income of $1.2 billion for the year 2024 [5][10]

Core Insights - Textron Inc. reported third-quarter 2025 adjusted earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.47 by 5.4% and reflecting a 10.7% increase from $1.40 in the same quarter last year [1][8] - Total revenues for the company were $3.6 billion, falling short of the Zacks Consensus Estimate of $3.71 billion by 2.8%, but showing a 4.9% increase from $3.43 billion in the previous year [2][8] Textron's Revenues - The company achieved total revenues of $3.6 billion, which was below expectations but represented a 4.9% year-over-year growth [2][8] Segmental Performance of Textron - **Textron Aviation**: Revenues increased by 10% year-over-year to $1.5 billion, driven by higher volumes in Citation jets and commercial turboprops, with a backlog of $7.7 billion [3][8] - **Bell**: Revenues reached $1 billion, also up 10% year-over-year, supported by increased military revenues, with a backlog of $8.2 billion [4][8] - **Textron Systems**: Revenues were $307 million, a slight increase from the previous year, with a backlog of $3.2 billion [5] - **Industrial**: Revenues declined by $79 million to $761 million due to the divestiture of the Powersports business [5] - **Textron eAviation**: Revenues totaled $5 million, down from $6 million in the prior year [5] - **Finance**: Revenues increased to $26 million from $12 million in the year-ago quarter [6] Textron's Financials - As of September 27, 2025, cash and cash equivalents were $1.45 billion, up from $1.39 billion at the end of 2024 [7] - Cash generated from operating activities in the first nine months of 2025 was $629 million, compared to $561 million in the same period last year [9] - Capital expenditures were $210 million, slightly down from $211 million in the prior year [9] - Long-term debt increased to $3.04 billion from $2.89 billion at the end of 2024 [9] Textron's Guidance - The company expects adjusted earnings to be in the range of $6.00 to $6.20 per share, with the Zacks Consensus Estimate at $6.15 per share [10] Textron's Zacks Rank - Textron currently holds a Zacks Rank 2 (Buy) [11]

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, 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 [13] - Industrial revenues were $761 million, down $79 million, primarily due to the divestiture of the power sports business [14] - Finance segment revenues were $26 million, with a profit of $18 million, compared to $12 million and $5 million in the previous year [15] 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 [12] - Textron Systems backlog ended at $3.2 billion, an increase of $980 million from the previous quarter [14] Company Strategy and Development Direction - The company announced the election of Lisa Atherton as the new President and CEO, effective January, with Scott Donnelly transitioning to Executive Chair [4] - Textron plans to eliminate the Textron Aviation segment as a separate reporting segment, realigning aviation business activities across Textron Aviation and Textron Systems [10] - The company continues to focus on strong growth in aerospace and defense businesses, with significant developments in the MV-75 program and Textron Aviation's product portfolio [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across the aviation sector, with expectations for continued growth in aftermarket revenues [5][21] - 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 [48] 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 expectation of approximately 21% for the full year [15] Q&A Session Summary Question: Update on the 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 [18][19] Question: Highlights on aviation demand - Management noted strong retail demand across the entire aviation portfolio, with improving margins and significant certification activity [20][21] Question: Long-term margin targets for aviation - Management stated that volume is the biggest lever for margin improvement, with steady bookings and plans for increased production in 2026 [32][33] Question: Supply chain impact on revenue forecast - Management acknowledged ongoing supply chain issues but expressed confidence in achieving the $6.1 billion revenue target [48][50] Question: Unmanned portfolio performance - Management reported strong performance in the Aerosonde program and ongoing development of new unmanned platforms, indicating growth opportunities [64][66] Question: Portfolio reevaluation post-management change - Management confirmed that the company continuously evaluates its portfolio for potential acquisitions or divestitures, independent of leadership changes [72]

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]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

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 ...