Kiran Ridley
Textron (NYSE:TXT) reported second-quarter earnings on Thursday that beat Wall Street estimates for both revenue and adjusted profit, driven by gains in its aviation and defense segments. Shares were little changed in premarket trading.
The industrial conglomerate posted revenue of $3.72 billion for the quarter ended June 28, up 5.4% year-over-year and above the consensus estimate of $3.65 billion. Adjusted earnings per share came in at $1.55, up slightly from $1.54 a year earlier and topping the $1.45 expected by analysts.
The company’s GAAP earnings per share held steady at $1.35.
Chairman and Chief Executive Scott Donnelly highlighted growth in Textron Aviation and Bell, noting that operations benefited from increased jet deliveries and momentum in Bell’s FLRAA program, now designated the MV-75.
“We saw revenue growth in both our commercial aircraft and helicopter businesses,” Donnelly said in a statement, adding that manufacturing improvements at Textron Aviation supported the performance.
Segment highlights
- Textron Aviation delivered 49 jets in the quarter, up from 42 a year ago. Segment revenue rose to $1.52 billion. However, segment profit declined to $180 million from $195 million due to less favorable product mix and higher warranty costs.
- Bell revenue surged 28% to slightly more than $1 billion, driven by higher military aircraft volume, particularly from the MV-75 program. Segment profit dipped slightly to $80 million as R&D expenses increased.
- Textron Systems posted stable revenue of $321 million and a 14% rise in profit to $40 million, aided by lower administrative expenses.
- Industrial revenue fell to $839 million, hurt by the sale of the Powersports business and lower vehicle volumes. Still, segment profit improved to $54 million on cost reductions tied to restructuring efforts.
- Textron eAviation, the company’s electric aviation unit, reported a loss of $16 million on $8 million in revenue.
Cash flow, capital returns
Textron (NYSE:TXT) generated $336 million in manufacturing cash flow before pension contributions during the quarter, up from $320 million a year ago. The company returned $214 million to shareholders via share repurchases in the quarter and has bought back $429 million in stock year to date.
Bolstered by its strong performance and new U.S. tax legislation, Textron (TXT) raised its 2025 manufacturing cash flow outlook to a range of $900 million to $1.0 billion, up $100 million from prior guidance.
Outlook
Textron reiterated its full-year 2025 EPS guidance of $5.19 to $5.39 on a GAAP basis and $6.00 to $6.20 on an adjusted basis.
Backlogs remained robust across its key businesses, with Textron Aviation’s backlog totaling $7.85 billion and Bell’s at $6.9 billion at quarter-end, the company said.