Financial Data and Key Metrics Changes - Revenues for the quarter were $3.7 billion, an increase of 5.4% or $189 million from the same quarter last year [4] - Segment profit for the quarter was $346 million, up $3 million from the second quarter of 2024 [4] - Adjusted income from continuing operations was $1.55 per share compared to $1.54 per share in the same quarter last year [4] - Manufacturing cash flow before pension contributions totaled $336 million, compared to $320 million in the same quarter last year [4] Business Line Data and Key Metrics Changes - Aviation segment revenues were $1.5 billion, up 2.8% from the second quarter of 2024, driven by higher sales for both aircraft and aftermarket [5][14] - Bell revenues increased by $222 million or 28% compared to the same quarter last year, driven by growth in the MV75 program and commercial helicopter business [7][14] - Systems revenues were slightly lower compared to last year, but segment profit margin increased to 12.5%, up 170 basis points [10] - Industrial revenues were $839 million, down $75 million from last year's second quarter, reflecting the impact of the powersports business disposition [16] Market Data and Key Metrics Changes - Aviation backlog ended the quarter at $7.85 billion, with solid demand across all products [6] - Bell's backlog ended the quarter at $6.9 billion, reflecting strong military and commercial demand [15] - Textron Systems backlog ended the quarter at $2.2 billion, with ongoing contracts supporting future growth [15] Company Strategy and Development Direction - The company is focusing on accelerating the MV75 program, with plans to transition smoothly from development to low-rate initial production (LRIP) [26] - The company is committed to maintaining a strong retail business while exploring fleet deals that make economic sense [56] - The company is investing in R&D for high-speed VTOL programs and other military applications, despite some program terminations [46][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of aviation margins and expects strong deliveries in the second half of the year [32][110] - The corporate environment is described as healthy, with strong demand and good dialogues with corporate customers [68] - Management noted that the recent tax legislation is expected to positively impact cash flow and overall business operations [120] Other Important Information - The company repurchased approximately 2.9 million shares, returning $214 million in cash to shareholders during the quarter [17] - Full-year adjusted earnings per share guidance is reiterated to be in the range of $6 to $6.2, with increased manufacturing cash flow expectations [18] Q&A Session Summary Question: What could the potential acceleration on MV75 look like? - Management indicated that they have good visibility on the development side and are working with the Army to accelerate the program, which may pull forward production timelines by about 18 months [23][25] Question: What offsets were there to the higher tax rate? - The timing of share repurchases has been ahead of plan, allowing the company to maintain guidance despite the increased tax rate [27][28] Question: What are the thoughts on Aviation margins moving forward? - Management expects margins to improve in the second half of the year as production ramps up and issues from the strike are resolved [31][110] Question: How is commercial helicopter demand trending? - Demand is reported as strong across all models, with good order activity and delivery expectations [91][92] Question: What is the outlook for King Air? - The King Air line has stabilized and is expected to see strong deliveries in the latter half of the year [115][116]

Financial Data and Key Metrics Changes - Revenues for the quarter were $3.7 billion, an increase of 5.4% or $189 million compared to the same quarter last year [3] - Segment profit for the quarter was $346 million, up $3 million from the second quarter of 2024 [3] - Adjusted income from continuing operations was $1.55 per share, compared to $1.54 per share in the same quarter last year [3] - Manufacturing cash flow before pension contributions totaled $336 million, compared to $320 million in the same quarter last year [3] Business Line Data and Key Metrics Changes - Aviation segment revenues were $1.5 billion, up 2.8% from the second quarter of 2024, driven by higher sales in both aircraft and aftermarket [4][12] - Bell revenues increased by $222 million or 28% compared to last year's second quarter, attributed to growth in the MV75 program and commercial helicopter business [4][12] - Textron Systems revenues were $321 million, down $2 million from last year, but segment profit increased by $5 million to $40 million due to lower selling and administrative expenses [12] - Industrial revenues were $839 million, down $75 million from last year, reflecting the impact of the disposition of the powersports business [12] Market Data and Key Metrics Changes - Aviation backlog ended the quarter at $7.85 billion, with solid demand across all products [5] - Bell's backlog ended the quarter at $6.9 billion, with military revenues increasing significantly [12] - Textron Systems backlog ended at $2.2 billion, indicating ongoing opportunities despite some program terminations [12] Company Strategy and Development Direction - The company is focusing on accelerating the MV75 program, with plans to transition smoothly from development to low-rate initial production (LRIP) [6][22] - The company is committed to maintaining a strong cash flow and has increased its expected full-year manufacturing cash flow before pension contributions to a range of $900 million to $1 billion [16] - The company is exploring opportunities in the battery electric vehicle market and has secured a foothold with a major European automotive OEM [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of aviation margins and expects strong deliveries in the second half of the year [29][104] - The company has not yet seen significant impacts from tariffs, maintaining a strong demand environment [36][88] - Management noted that the corporate world is healthy, with good dialogues and strong flying activity driving aftermarket demand [66] Other Important Information - The company repurchased approximately 2.9 million shares, returning $214 million in cash to shareholders during the quarter [14] - The adjusted effective tax rate for 2025 is expected to be in the range of 20% to 21% due to recent tax legislation [16][114] Q&A Session Summary Question: What could the potential acceleration on MV75 look like? - Management indicated that they have good visibility on the development side and are working closely with the Army to accelerate the program, which may pull forward production timelines by about eighteen months [21][22] Question: What offsets were there to the higher tax rate? - The timing of share repurchases has been ahead of plan, allowing the company to maintain guidance despite the increased tax rate [24] Question: What are the margins at Aviation expected to be moving forward? - Management expects margins to improve in the second half of the year, with strong jet and turboprop deliveries anticipated [28][29] Question: How is the demand environment for commercial helicopters? - Demand is strong across all models, with good order activity and delivery expectations [86] Question: How is the company approaching capital deployment? - The primary focus is on opportunistic share buybacks, with potential for acquisitions if they make economic sense [62] Question: What is the outlook for King Air? - The King Air line has stabilized and is expected to see strong deliveries in Q3 and Q4 [108]