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Textron Posts Better-Than-Expected Q4 Earnings, Misses on Revenues
TXTTextron(TXT) ZACKS·2025-01-22 19:51

Earnings Performance - Adjusted earnings per share (EPS) for Q4 2024 was 1.34,beatingtheZacksConsensusEstimateof1.34, beating the Zacks Consensus Estimate of 1.25 by 7.2%, but declined 16.3% from 1.60intheyear−agoquarter[1]−GAAPearningspershareforQ42024was76cents,downfrom1.60 in the year-ago quarter [1] - GAAP earnings per share for Q4 2024 was 76 cents, down from 1.61 in Q4 2023 [2] - Full-year 2024 adjusted EPS was 5.48,surpassingtheZacksConsensusEstimateof5.48, surpassing the Zacks Consensus Estimate of 5.42 but declined 2% from 5.59inthepreviousyear[2]RevenuePerformance−Q42024totalrevenueswere5.59 in the previous year [2] Revenue Performance - Q4 2024 total revenues were 3.61 billion, missing the Zacks Consensus Estimate of 3.74billionby3.53.74 billion by 3.5% and declining 7.2% from 3.89 billion in the year-ago quarter [3] - Manufacturing revenues improved 7.2% year-over-year to 3.60billion[3]−Full−year2024revenueswere3.60 billion [3] - Full-year 2024 revenues were 13.70 billion, missing the Zacks Consensus Estimate of 13.83billionbutimproved0.113.83 billion but improved 0.1% from 13.68 billion in the previous year [3] Segmental Performance Textron Aviation - Revenues declined 15.9% year-over-year to 1.28billionduetolowervolumecausedbyproductiondisruptionsfromalaborstrike[4]−Operatingprofitwas1.28 billion due to lower volume caused by production disruptions from a labor strike [4] - Operating profit was 100 million, down from 193millionintheyear−agoperiod,attributedtolowervolume,manufacturinginefficiencies,andstrike−relatedcosts[5]−Delivered32jets(downfrom50)and38commercialturboprops(downfrom44)comparedtotheyear−agoquarter[5]−Orderbacklogattheendofthequartertotaled193 million in the year-ago period, attributed to lower volume, manufacturing inefficiencies, and strike-related costs [5] - Delivered 32 jets (down from 50) and 38 commercial turboprops (down from 44) compared to the year-ago quarter [5] - Order backlog at the end of the quarter totaled 7.8 billion [5] Bell - Revenues increased 5.4% year-over-year to 1,129million,drivenbyhighermilitaryrevenuesfromtheFLRAAprogram[6]−Operatingprofitdeclined6.81,129 million, driven by higher military revenues from the FLRAA program [6] - Operating profit declined 6.8% to 110 million due to lower volume on the V-22 program [6] - Delivered 78 commercial helicopters, down from 91 in the previous year [6] - Order backlog at the end of the quarter totaled 7.5billion[6]TextronSystems−Revenuesdeclined17.5 billion [6] Textron Systems - Revenues declined 1% year-over-year to 311 million [7] - Operating profit increased 20% to 42million[7]−Orderbacklogattheendofthequartertotaled42 million [7] - Order backlog at the end of the quarter totaled 2.6 billion [7] Industrial - Revenues declined 9.6% year-over-year to 869millionduetolowervolumesandmix,particularlyintheSpecializedVehiclesproductline[7]−Operatingprofitwas869 million due to lower volumes and mix, particularly in the Specialized Vehicles product line [7] - Operating profit was 48 million, down from 57millionintheprior−yearquarter[8]TextroneAviation−Revenuesincreased1057 million in the prior-year quarter [8] Textron eAviation - Revenues increased 10% year-over-year to 11 million [9] - Reported a loss of 18million,narrowerthanthe18 million, narrower than the 22 million loss in the prior-year period [9] Finance - Revenues declined 8.3% year-over-year to 11million[9]−Operatingprofitwas11 million [9] - Operating profit was 5 million, up from 4millionintheyear−agoperiod[9]FinancialPosition−Cashandcashequivalentstotaled4 million in the year-ago period [9] Financial Position - Cash and cash equivalents totaled 1.39 billion as of Dec 28, 2024, down from 2.12billionasofDec30,2023[10]−Cashflowfromoperatingactivitiesin2024was2.12 billion as of Dec 30, 2023 [10] - Cash flow from operating activities in 2024 was 1.01 billion, down from 1.27billionintheprioryear[10]−Capitalexpenditureswere1.27 billion in the prior year [10] - Capital expenditures were 153 million, down from 178millionintheprioryear[10]−Long−termdebttotaled178 million in the prior year [10] - Long-term debt totaled 2.89 billion as of Dec 28, 2024, down from 3.17billionasofDec30,2023[10]Guidance−Textronissued2025adjustedEPSguidanceintherangeof3.17 billion as of Dec 30, 2023 [10] Guidance - Textron issued 2025 adjusted EPS guidance in the range of 6.00-6.20,belowtheZacksConsensusEstimateof6.20, below the Zacks Consensus Estimate of 6.53 [11] Upcoming Defense Releases - Leidos Holdings (LDOS) is set to report Q4 2024 earnings on Feb 11, 2025, with a Zacks Consensus Estimate of 2.18EPSand2.18 EPS and 4.12 billion in sales, indicating 3.6% year-over-year growth [13] - Northrop Grumman (NOC) is set to report Q4 2024 results on Jan 30, 2025, with a Zacks Consensus Estimate of 6.26EPSand6.26 EPS and 11.02 billion in sales, indicating 3.6% year-over-year growth [14] - CurtissWright (CW) is set to report Q4 2024 results on Feb 12, 2025, with a Zacks Consensus Estimate of 3.08EPSand3.08 EPS and 785.5 million in sales [14]