What were the key takeaways from Textron’s earnings call?

What is the revenue and EPS growth rate for Textron year over year?

What does Textron do and what are its main business segments?

What were the key takeaways from Textron's earnings call?

Did Textron beat or miss consensus estimates last quarter?

What is Textron's latest dividend and current dividend yield?

What guidance did Textron's management provide for the next earnings period?

What factors drove the changes in Textron's revenue and profit?

- **Revenue Growth**: Q3 revenue up 5% YoY to $3.6 billion, driven by 10% growth in Aviation and 10% in Bell segments.
- **Leadership Transition**: Lisa Atherton to become CEO in January 2026, succeeding Scott Donnelly as Executive Chairman.
- **Defense Momentum**: MV-75 program exceeds 90% engineering milestone, with $1 billion in new Systems contracts.
- **Cash Flow & Buybacks**: Manufacturing cash flow up 89% YoY to $281 million; $635 million returned to shareholders via buybacks YTD.
- **Risks**: Supply chain constraints persist, particularly in Industrial segment (10% YoY decline).

**【Management Remarks】**
- Textron reported Q3 2025 revenue of $3.6 billion, up 5% YoY, with segment profit rising 26% to $357 million. Adjusted EPS was $1.55, up 11% YoY. Manufacturing cash flow before pension contributions was $281 million, up 89% YoY.

**【CEO Commentary】**
- **Leadership Transition**: Lisa Atherton will become CEO in January 2026, succeeding Scott Donnelly, who will transition to Executive Chairman. Atherton brings 18 years of experience, including leading Bell and Textron Systems.
- **Aviation Performance**: Q3 revenue grew 10% to $1.5 billion, driven by higher Citation jet and turboprop volumes. Backlog remains strong at $7.7 billion. Key milestones include CJ3 Gen2 certification and the Citation Ascend's FAA approval.
- **Defense Growth**: Bell's MV-75 program exceeded 90% engineering release milestone, with fabrication and assembly progressing across multiple sites. Systems secured $1 billion in new contracts, including U.S. Army mobile strike vehicles and Ship-to-Shore Connector awards.
- **Challenges**: Industrial segment revenue declined 10% due to Powersports divestiture, but eAviation segment loss narrowed to $15 million.

**【CFO Commentary】**
- **Segment Breakdown**: 
  - **Bell**: Revenues up 10% to $1 billion, driven by MV-75 military volume. Segment profit declined 6% due to higher costs.
  - **Systems**: Revenues up 2% to $307 million, with profit rising 25% to $52 million on contract gains.
  - **Industrial**: Revenues down 10% to $761 million, reflecting Powersports exit.
- **Financial Highlights**: Full-year adjusted EPS guidance maintained at $6-$6.20. Manufacturing cash flow target remains $900-$1 billion. Share buybacks totaled $635 million YTD.

**【Q&A Highlights】**
- **MV-75 Program**: Acceleration of LRIP 8 is low-risk, with 6 prototype aircraft in production. Program remains on track for first delivery in 2026.
- **Aviation Demand**: Strong aftermarket growth (5% YoY) reflects high fleet utilization. Biz jet market remains robust, with bookings steady despite long lead times.
- **Supply Chain**: Improvements in production efficiency, though critical suppliers still pose challenges. Management confident in hitting $6.1 billion revenue target.
- **Unmanned Systems Growth**: Systems' Aerosonde program sees renewed demand, with new opportunities in international markets. eAviation's Nuuva V300 unmanned cargo aircraft enters flight testing.
- **Portfolio Strategy**: No immediate plans for further divestitures, but open to evaluating new opportunities to enhance shareholder value.

Textron Inc. (TXT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TXT

TXT fundamentals

You can ask Aime