TXT Financial Analysis

Analysis Date: 1/24/2025

Business Model

Textron operates through multiple segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance

Revenue Sources

• Textron Aviation - Aircraft sales and aftermarket services ($5,284M in 2024)
• Bell - Military and commercial helicopters ($3,579M in 2024)
• Textron Systems - Defense and aerospace products ($1,241M in 2024)
• Industrial - Specialized vehicles and equipment ($3,515M in 2024)

Income Statement Analysis

• Revenue decreased 7.2% year-over-year primarily due to lower volumes at Textron Aviation and Industrial segments
• Segment profit declined 26.3% due to production disruptions from strike at Textron Aviation
• Adjusted EPS of $1.34 vs $1.60 in prior year quarter

Balance Sheet Analysis

• Strong balance sheet with $1.4B in cash despite decline from prior year
• Total assets relatively stable year-over-year

Cash Flow Analysis

• Full year manufacturing cash flow before pension of $692M, down from $931M in 2023

Capital Allocation

Returned $1.1B to shareholders through share repurchases in 2024. Focused on strategic investments in new product development across segments.

Management Commentary

Strong order activity and aftermarket growth at Aviation despite work stoppage

Significant progress on FLRAA program at Bell with Milestone B achievement

Strike at Aviation and difficult Industrial markets impacted 2024 results

Overall Sentiment: Cautiously optimistic with focus on operational improvements and new product development

Recommendation

Rating: Hold

Reason for Rating: Mixed near-term outlook balanced by strong backlog and long-term growth initiatives

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/24/2025, 4:47:08 AM