“In the [second] quarter, our team delivered higher revenue, earnings per share, and cash flow,” said Scott C. Donnell, chairman and CEO, Textron. “At Aviation and Bell, we continued to execute on key programs, including the Citation Ascend and FLRAA.”

The YoY $113m increase in revenue came from higher pricing of $57m and higher volume and mix of $56m.

Textron Aviation delivered 42 jets in the quarter, down from 44 in the second quarter of 2023, and 44 commercial turboprops, up from 37 in last year’s second quarter.

On the bottom line, the aviation segment’s profits increased to $195m, up $24m from same quarter last year.

Meanwhile, the company’s backlog at the end of the second quarter was $7.5bn slightly higher than $7.3bn at the end of first quarter 2024.

Overall, Textron’s second quarter revenue increased by 3%YoY to $3.5bn attributable to growth in Aviation, Bell and Systems segments which offset the decline in revenues from Industrial and eAviation segments.

Despite higher topline, the company’s net income declined during the quarter under review to $259m in the second quarter from $263m from last year. The company booked special charges of $13m, which the company said was due to “headcount reductions in the Industrial, Textron Systems and Bell segments.”

This translated in to earnings of $1.35 per share, as compared to $1.30 in the second quarter of 2023.

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“In the quarter, we saw profit growth across our Aviation, Bell, and Systems businesses,” said Scott C. Donnelly, chairman and CEO, Textron. “At Aviation, we saw continued strong market demand which contributed to $177m in backlog growth. At Bell, we saw revenue growth driven by the FLRAA program.”

The company said that the Textron Aviation’s revenues increased by $39m from last year’s first quarter, reflecting higher pricing of $48m, partially offset by lower volume and mix of $9m.

Meanwhile, Textron Aviation delivered 36 jets in the quarter, up from 35 in the first quarter of 2023, and 20 commercial turboprops, down from 34 in last year’s first quarter.

In terms of profitability, the aviation segment’s profit increased by $18m to $143m during the quarter under review driven by the favourable impact from pricing, net of inflation of $14m.

The segment’s backlog at the end of the first quarter was $7.3bn.

Overall, Textron’s revenue increased by 4%YoY to $3.1bn with a major boost of this coming from the higher sales in aviation and helicopters segment (Bell). This translated in to net income of $1.03 per share, as compared to $0.92 per share in the first quarter of 2023.

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The filings showed Textron Aviation made lower jet deliveries of 50 jets in the quarter, down from 52 last year, and 44 commercial turboprops, down from 47 last year.

However, Textron Aviation’s segment profit improved by $23m to $193m during the fourth quarter. The company said the higher profit was due to “a favourable impact from pricing, net of inflation, of $51m, partially offset by lower volume and mix of $22m.”

Textron Aviation backlog at the end of the fourth quarter was $7.2bn.

On a cumulative basis, the Textron Aviation segment posted revenue of $5.4bn in 2023 compared to $5.1bn in 2022 with profits improving to $649m from $560m respectively.

Overall, Textron’s fourth quarter 2023 income from operations clocked in at $1.01 per share, as compared with $1.07 per share in the fourth quarter of 2022. Operating margins witnessed slight erosion during the fourth quarter on account of $126m charges resulting from the implementation of restructuring plan.

“2023 was a strong year at Textron with solid revenue and profit growth along with segment profit margin expansion,” said Scott C. Donnelly, chairman and CEO, Textron. “At Aviation, we saw continued backlog growth and, at Bell, the team began executing on our transformational FLRAA programme.”

The company is eyeing 12-13% growth ($600m) in Textron Aviation revenues during 2024.

“We think the better than expected guidance for 2024 is likely to be the focal point for Textron today. On Aviation the guidance is similar to our forecasts, and we’ll be interested to hear what the company has to say with regard to projected market demand (and the book to bill) and the supply chain,” said Robert Stallard of Vertical Research Partners in his earnings analysis.

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The increase in segment’s revenue came on the back of from higher volumes and favourable pricing.

“At Aviation, we saw our strongest order quarter of the year with a 12% increase over the third quarter of 2022,” said Scott C Donnelly, chairman and CEO, Textron.

The aviation segment’s profit clocked in at $160m in Q3, up $29m from a year ago, largely due to favourable pricing.

Meanwhile, a $23m favourable impact from higher volume and mix was partially offset by supply chain and labour inefficiencies.

The company’s aviation segment delivered 39 jets and 38 commercial turboprops. Textron Aviation’s backlog at the end of the Q3 was $7.4bn.

“The much-watched aviation backlog expanded by $600m sequentially and we calculate a book to bill of about1.4x,” said Robert Stallard, global aerospace & defence partner at Vertical Research Partners. “The book to bill at aviation has actually improved versus deteriorating, which bodes well for bizjet demand.”

Overall, Textron group’s revenue reported earnings per share (EPS) of $1.35 for Q3, up 27% year-over-year from the same period last year. The company’s revenue grew by 8.6% year-over-year to $3.4bn compared with $3.1bn during the Q3 2022.

“In the quarter, we saw higher overall revenues and net operating profit driven by growth at aviation, industrial and systems,” said Donnelly.

Meanwhile, Bell revenues remained flat at $754m compared to $754m in the same period last year on account of lower commercial helicopter volume, largely reflecting supply chain constraints.

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The company said its backlog increased by $2.3bn from the end of 2021 and 2022 to total $6.4bn. Within Q4, Textron delivered 52 jets, up from 46 the previous year, and 47 turboprops, up from 43 in Q4 2021.

Profits also increased for the quarter, up $32m from the year before to $169m. The firm said this was due to a favourable impact from pricing, net inflation of $29m and higher volume. Those were partially offset by a $16m loss due to manufacturing and supply chain issues, alongside increased staffing.

Scott C. Donnelly, chairman and CEO, Textron said 2022 was “a strong year at Textron with solid revenue growth, order flow and execution at Aviation”.

He added: “The 2023 outlook reflects higher revenues, increased profit and operating margin expansion with a continuation of our growth strategy of ongoing investments in new products and programmes to drive increases in long-term shareholder value.”

Textron Aviation Q4 results –  at a glance

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Revenues of $795m were down $406m from Q3 last year. The lower Citation jet volume of $234m and lower commercial turboprop volume of $83m reflect a decline in demand related to the pandemic said the Wichita-based OEM. Whilst lower aftermarket volume of $95m, relfects lower aircraft utilisation also in relation to Covid-19.

Textron delivered 25 jets in Q3 2020, down from 45 last year, and 21 commercial turboprops, down from 39 last year.

Segment loss was $29m in the third quarter, down from $104m of profit last year, primarily due to the lower volume and mix.

Textron chairman and CEO Scott C. Donnelly remained positive. Addressing Textron’s Q3 results webcast he said the company had been encouraged on the aviation side by the flow of aircraft orders as the sales team reacquainted themselves with customers post-pandemic.

Brian Foley, founder, Brian Foley Associates told CJI despite the rough year for aviation Textron as a company will be fine.

“Fortunately Textron is a diversified company, so everything isn’t totally dependent on its worst-performing fixed-wing aircraft Aviation division.  While deliveries of these fell short, the Bell helicopter unit had higher revenues and profitability with consistent deliveries.  The industrial and systems divisions remain sound. While Cessna deliveries  were down 45% for the quarter year-over-year, I’m forecasting a net loss of 30% in deliveries for 2020 versus 2019 which is generally on par with the other manufacturers,” said Foley.

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