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Textron reports Q2 earnings beat, in-line revenue; Backlog robust

EditorRachael Rajan
Published 07/18/2024, 06:57 AM
© Reuters.
TXT
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PROVIDENCE, R.I. - Textron Inc . (NYSE: NYSE:TXT) today reported a modest increase in second-quarter 2024 adjusted earnings per share (EPS) to $1.54, up from $1.46 in the same quarter last year, exceeding analyst expectations by $0.06. The company's revenue matched analyst forecasts, coming in at $3.53 billion.

Textron's Chairman and CEO Scott C. Donnelly attributed the strong quarter to higher revenue, earnings per share, and cash flow, highlighting the execution of key programs at Aviation and Bell, such as the Citation Ascend and FLRAA. The company's net cash from operating activities rose to $383 million, up from $314 million in the prior year's quarter, while $358 million was returned to shareholders through share repurchases.

Textron Aviation saw a revenue increase of $113 million to $1.5 billion, driven by higher pricing and a favorable volume and mix. Despite delivering fewer jets compared to the second quarter of 2023, the segment's profit increased by $24 million, reflecting the positive impact of pricing and volume, which offset performance-related challenges.

Bell's revenue also experienced an uptick, largely due to higher military volume related to the FLRAA program. Segment profit grew by $17 million, primarily due to lower research and development costs.

On the guidance front, Textron anticipates full-year 2024 EPS to be between $6.20 and $6.40, with the midpoint of this range slightly below the analyst consensus of $6.31.

The company's backlog remains robust, with Textron Aviation at $7.5 billion and Bell at $4.2 billion by the end of the quarter. However, the Industrial segment faced a decline in revenues, primarily due to lower volume and mix.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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