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]

Group 1 - Boeing is in the early stages of developing a new single-aisle aircraft to replace the 737 Max Jet [1] - Boeing CEO Kelly Ortberg met with Rolls-Royce to discuss developing a new aircraft engine and has been designing a flight deck for the new narrow-body aircraft [2] - The development of the new aircraft is still in preliminary stages, with decisions yet to be finalized, while Boeing's recovery plan is progressing smoothly [3] Group 2 - The FAA may allow Boeing to regain control of aircraft safety checks, enabling Boeing employees to resume phased authority for safety sign-offs on 737 MAX jets [4] - Boeing secured significant orders from Norwegian Group and Turkish Airlines, with orders for 30 737-8 Jets and 75 787-Dreamliner Jets, and Turkish Airlines planning to purchase over 150 additional 737 MAX aircraft [5] - Boeing delivered the first 737 Max aircraft to VietJet Air after a 9-year wait since the order was placed [5] Group 3 - Boeing scores well on the Momentum metric but has poor Growth metrics, with unfavorable Short and Medium-term price trends, while showing a favorable Long-term price trend [6]