Key Takeaways Howmet's defense aerospace revenues rose 24% and reached 17% of total sales in Q3 2025.Engineered Structures saw a 14% revenue gain helped by strong orders for key military aircraft spares.The House's FY26 defense budget and solid military-program pipeline support continued demand growth.Howmet Aerospace Inc.’s (HWM) defense aerospace market continues to play a significant role in driving its overall growth. In third-quarter 2025, the company’s revenues from the defense aerospace market accoun ...

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]

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]

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]