Textron Reports Solid Q1 Financial Performance

Textron Inc. reported a solid financial performance for the first quarter of 2024, indicating a strong start to the year with notable gains across its primary business segments.

The conglomerate announced a net income of $1.03 per share, up from $0.92 in the same period last year. Adjusted net income rose to $1.20 per share from $1.05 per share in the first quarter of 2023, showcasing continued financial health and operational efficiency.

According to Textron Chairman and CEO Scott C. Donnelly, the quarter witnessed profit growth across the Aviation, Bell, and Systems segments. Textron Aviation, in particular, reported a backlog increase of $177 million, driven by sustained strong market demand. Bell's revenue growth was significantly bolstered by the Future Long-Range Assault Aircraft (FLRAA) program, although this was partly offset by reduced volumes in other military programs like the V-22 and H-1.

The quarter's financials also highlighted a shift in cash flow dynamics. Net cash used by operating activities for Textron's manufacturing group was reported at $30 million, a downturn from the $153 million provided last year. Similarly, the cash flow before pension contributions showed a usage of $81 million, in contrast to an inflow of $104 million in the previous year, indicating a heavier investment phase, possibly tied to ramped-up research and development across segments.

Textron Aviation delivered 36 jets this quarter, slightly up from 35 in the previous year, and managed to maintain robust revenue figures despite a drop in commercial turboprop deliveries. The division's revenue increased to $1.2 billion, reflecting higher pricing that offset the lower volume and mix, culminating in a segment profit of $143 million, which was $18 million higher than last year. The favorable pricing adjustments, net of inflation, played a crucial role in this increase.

Bell's performance was equally strong, with revenues reaching $727 million due to high military demand under the FLRAA program. However, commercial helicopter deliveries saw a decline from 22 to 18 units. Despite this, the segment's profit rose by $20 million, driven largely by efficient performance and reduced research and development expenses.

In contrast, the Textron eAviation segment faced challenges, marking a loss of $18 million due to escalated research and development costs, doubling the loss from the previous year's first quarter. Despite these losses, the company continues to invest in this nascent segment, underscoring its commitment to future growth areas.

In a robust display of shareholder confidence, Textron returned $317 million to its shareholders through share repurchases during the quarter, affirming its strong financial position and optimistic outlook for the upcoming periods.

FMI: www.textron.com