Textron (NYSE:TXT) Q3 2025 Earnings Call October 23, 2025 08:00 AM ET Speaker0Good morning, ladies and gentlemen, and welcome to the Textron Third Quarter twenty twenty five Earnings Release. At this time, all participants are in a listen only mode. You will have the opportunity to ask questions during the question and answer portion of this call. I would now like to turn the conference over to Scott Hegstrom. Please go ahead, sir.Speaker1Thanks, Rob, and good morning, everyone. Before we begin, I'd like to ...

Core Insights - Boeing and Leonardo are collaborating to pursue the U.S. Army's Flight School Next contractor-owned, contractor-operated (COCO) service contract, combining their strengths to provide a low-risk, high-readiness training solution for future aviators [1][4]. Group 1: Partnership Overview - The partnership leverages Boeing's operational experience in Army rotary-wing training and Leonardo's AW119T training helicopter to create an efficient and scalable training solution [2]. - Boeing's extensive training experience includes support for the AH64 Apache, utilizing live, virtual, and constructive simulation to maintain aircrew readiness [3]. Group 2: Training Solution Features - The AW119T has surpassed 100,000 flight hours, demonstrating its reliability and effectiveness in military training, with a sustainment network established in Florida for rapid logistics support [5][6]. - The training program will include a comprehensive service offering aimed at increasing flight training hours and skill proficiency, featuring automated logistics and optimized maintenance scheduling [7][8]. Group 3: Operational Efficiency and Value - The training system will provide a full turnkey solution, including airframes, parts, maintenance, instructors, simulators, and a validated curriculum, enhancing the overall training experience [8]. - The program aims to deliver measurable value throughout its lifecycle by improving aviator proficiency and operational efficiencies [4][6].

Group 1: Airbus H160 Helicopter Order - Airbus SE secured an order from Japan's Nagoya City Fire Bureau for an H160 multi-role helicopter, enhancing its long-standing partnership with Japan, where nearly 380 helicopters are in operation [1][9] - The H160 will be utilized for firefighting, search and rescue, and disaster response, showcasing its versatility in various missions [1][3] Group 2: Airbus Helicopters Segment Performance - The Airbus Helicopters segment reported a solid 10% year-over-year revenue growth in Q1 2025, with 100 net orders compared to 63 units in the same quarter last year [5] - The latest order is expected to positively contribute to Airbus's future revenue growth and solidify its global standing in the helicopter market [4] Group 3: Competitors in the Helicopter Market - Other defense companies like Boeing, Textron, and Lockheed Martin are also positioned to benefit from the expanding helicopter market, with Boeing's long-term earnings growth rate at 18.1% and a projected 27.5% sales improvement for 2025 [6][7] - Textron's Bell segment has a long-term earnings growth rate of 10% and a projected 6.6% sales growth for 2025, while Lockheed Martin has a long-term earnings growth rate of 10.5% with a 4.6% sales improvement forecast for 2025 [8][10] Group 4: Stock Performance - Over the past six months, Airbus shares have increased by 28.6%, outperforming the industry growth of 21.8% [11]

Core Insights - Airbus SE has signed a contract with Norwegian Air Ambulance for the delivery of up to eight H145 helicopters, with an initial firm order for two units, which is expected to enhance the company's Helicopters business segment [1][9] - The Helicopters business segment experienced a solid 10% year-over-year revenue growth in Q1 2025 [1][9] Market Demand and Growth - There is a rising global demand for multirole helicopters as defense and civil operators seek versatile and cost-effective platforms for modern warfare, disaster relief, and homeland security [2] - GII Research forecasts a CAGR of 7.1% for the global multirole helicopter market from 2025 to 2035, which presents growth opportunities for Airbus [3] H145 Helicopter Performance - The H145 helicopter is witnessing strong global demand due to its effectiveness in Helicopter Emergency Medical Services and increasing military adoption [4] - The H145M variant features rapid deployment and combat capabilities, with a five-bladed rotor that increases payload by 150 kg, enhancing its operational value [4] Competitor Insights - Boeing's MH-139A Grey Wolf is designed for multi-mission capabilities, with a long-term earnings growth rate of 18.1% and a projected 25.6% sales improvement for 2025 [5][6] - Textron's Bell segment has a long-term earnings growth rate of 10% and a projected 6.6% sales growth for 2025 [6][7] - Lockheed Martin's Sikorsky unit provides military helicopters with a long-term earnings growth rate of 10.5% and a projected 4.7% sales improvement for 2025 [8][10] Stock Performance - Airbus shares have increased by 8.5% over the past month, outperforming the industry growth of 3.4% [11]