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]