Textron(TXT) - 2024 Q4 - Annual Report

Backlog and Revenue Growth - Textron Aviation's backlog increased to $7,845 million in 2024 from$7,169 million in 2023, reflecting a growth of approximately 9.4%[34] - Bell's backlog rose significantly to $7,469 million in 2024, up from$4,780 million in 2023, marking a growth of about 56.3%[34] - Textron Systems' backlog also saw an increase, reaching $2,594 million in 2024 compared to$1,950 million in 2023, which is a growth of approximately 33.1%[34] - Total backlog for Textron reached $17,908 million in 2024, up from$13,899 million in 2023, indicating an overall growth of about 28.8%[34] - Total revenues for 2024 increased to $13,702 million, a slight increase of 0.14$13,683 million in 2023[189] - Total revenues for 2024 reached $13.702 billion, a slight increase from$13.683 billion in 2023, representing a year-over-year growth of 0.14%[1] - Textron Aviation generated revenues of $5,284 million in 2024, compared to$5,373 million in 2023, with aircraft sales contributing $3,374 million[288] - Bell segment revenues increased to$3,579 million in 2024, up from $3,147 million in 2023, driven by military aircraft and support programs[288] - Textron Systems reported revenues of$1,241 million in 2024, consistent with $1,235 million in 2023[288] - Industrial segment revenues decreased to$3,515 million in 2024 from $3,841 million in 2023, with specialized vehicles contributing$1,624 million[288] Financial Performance - Net income for 2024 was $824 million, a decrease of 10.55$921 million in 2023[190] - Basic earnings per share for continuing operations decreased to $4.38, down from$4.62 in 2023[189] - Total assets decreased slightly to $16,838 million from$16,856 million in 2023[191] - Total liabilities decreased to $9,634 million, down from$9,869 million in 2023[191] - Cash and equivalents at the end of 2024 were $1,441 million, a decrease of 33.94$2,181 million at the end of 2023[196] - Comprehensive income for 2024 increased to $1,164 million, up from$889 million in 2023[190] - Income from continuing operations for the Manufacturing Group decreased to $796 million in 2024 from$884 million in 2023, a decline of approximately 10%[197] - Net cash provided by operating activities of continuing operations for the Manufacturing Group was $1,008 million in 2024, down from$1,270 million in 2023, representing a decrease of about 21%[197] - The Finance Group reported net cash provided by operating activities of $8 million in 2024, down from$14 million in 2023[197] - The company reported a net cash used in financing activities of $1,438 million in 2024, an increase from$776 million in 2023[197] Research and Development - Research and development costs decreased to $491 million, down 13.86$570 million in 2023[189] - Research and development costs totaled $491 million in 2024, compared to$570 million in 2023[286] - The company adopted ASU 2023-07 in Q4 2024, impacting the presentation of research and development costs in financial statements[284] Employee and Labor Relations - Textron employed approximately 34,000 employees worldwide as of December 28, 2024, with 80% located in the U.S.[43] - A new five-year labor contract was ratified on October 20, 2024, following a strike that impacted about 5,000 employees at Textron Aviation[43] - The company aims to improve performance, innovation, collaboration, and talent retention by employing highly talented employees who feel valued and respected[49] Pension and Benefits - Net periodic benefit cost (income) for pension benefits was $(192) million in 2024, compared to$(167) million in 2023, and $(129) million in 2022[306] - The projected benefit obligation for pension benefits decreased from$7,205 million in 2023 to $6,788 million in 2024, while the fair value of plan assets increased from$8,413 million to $8,772 million[307] - The funded status for pension benefits improved from$1,208 million in 2023 to $1,984 million in 2024[307] - The accumulated benefit obligation for all defined benefit pension plans was$6.5 billion in 2024, down from $6.9 billion in 2023[308] - The service cost for pension benefits was$69 million in 2024, slightly up from $67 million in 2023[306] Special Charges and Restructuring - Special charges recorded in 2024 totaled$78 million, with $43 million in severance costs and$32 million in contract termination costs[318] - The company initiated a restructuring plan in Q4 2023, resulting in headcount reductions of approximately 1,800 positions, representing 5% of the global workforce[320] - In 2024, the company recorded an inventory valuation charge of $38 million related to powersports inventory[321] Tax and Compliance - The effective income tax rate for 2024 was 12.5$215 million in 2024 from $222 million in 2023[327] - Deferred tax assets decreased to$261 million in 2024 from $349 million in 2023[332] Cash Flow and Capital Expenditures - Total capital expenditures for the Manufacturing Group were$364 million in 2024, a decrease from $402 million in 2023[197] - The company has a senior unsecured revolving credit facility of$1.0 billion, with the option to increase it to $1.3 billion, expiring in October 2027[264] Inventory and Assets - Total inventories increased from$3,914 million at December 30, 2023, to $4,071 million at December 28, 2024, with finished goods rising from$1,072 million to $1,138 million[256] - Property, plant, and equipment, net increased from$2,477 million at December 30, 2023, to $2,529 million at December 28, 2024, with total accumulated depreciation rising from$5,247 million to $5,471 million[257] Shareholder Actions - The company repurchased$12.89 million shares in 2024, reducing outstanding common stock from 192,898 thousand shares in 2023 to 182,964 thousand shares in 2024[273] - Basic weighted-average shares outstanding decreased from 199,719 thousand in 2023 to 188,318 thousand in 2024[275] - The company declared dividends of $0.08 per share for 2024, consistent with the previous year[192]