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Textron beats profit estimates on higher pricing of business jets

Published 07/27/2023, 07:17 AM
Updated 07/27/2023, 07:23 AM
© Reuters. FILE PHOTO: Cessna employee Dwight Bennett works inside of a jet  during a tour of the Cessna business jet assembly line at their manufacturing plant in Wichita, Kansas August 14, 2012. REUTERS/Jeff Tuttle/File Photo
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(Reuters) - Textron Inc (NYSE:TXT) raised its full-year adjusted earnings per share forecast on Thursday, as stronger pricing of business jets and military helicopters continues to offset inflationary costs and drive revenue growth in its Aviation segment.

Demand for private flying continues to remain healthy despite having tempered from the highs reached during the pandemic when wealthy individuals sought to travel without restrictions.

Textron's sizeable order backlog grew to $6.8 billion in the second quarter, up from $6.5 billion sequentially, driving revenue generating capacity in the future.

Shares of Textron rose 9.3% in pre-market trade.

The company now expects full-year adjusted earnings per share to be between $5.20 and $5.30, up from its prior outlook of $5.00 to $5.20

Textron's Aviation segment, which is its most profitable, delivered 44 jets in the second quarter, down from 48 a year earlier due to continued supply chain and labor inefficiencies. However, stronger pricing increased the segment's revenue to $1.4 billion, up $78 million from a year earlier.

© Reuters. FILE PHOTO: Cessna employee Dwight Bennett works inside of a jet  during a tour of the Cessna business jet assembly line at their manufacturing plant in Wichita, Kansas August 14, 2012. REUTERS/Jeff Tuttle/File Photo

On an adjusted basis, the company earned $1.46 per share in the second quarter, beating analysts' average estimate of $1.21, according to Refinitiv data.

The jet maker's total revenue of $3.42 billion was in line with analysts' estimates of $3.41 billion.

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