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]