Textron Inc.

Overview Key strengths Key risks Strong demand for key platforms Exposed to supply-chain vulnerability and weak skilled-labor supply Robust government defense spending Customer base concentrated in the U.S. government Strong free cash flow generation. Elevated tax payments over the next several years Textron's aviation segment is its largest and grew in the first half of 2024 due to robust turboprop sales and sustained demand for business jets. We expect this trend to continue in the near term, supported by strong pricing and a healthy backlog. The company commenced deliveries of its new King Air 360 to the U.S. Navy, contributing to higher revenues from turboprop sales. Other notable new programs in the aviation segment include the Cessna Skycourier, which has

...We expect stable demand across key business lines, while new platforms build momentum for future growth. Textron's aviation segment is its largest and grew in the first half of 2024 due to robust turboprop sales and sustained demand for business jets. We expect this trend to continue in the near term, supported by strong pricing and a healthy backlog. The company commenced deliveries of its new King Air 360 to the U.S. Navy, contributing to higher revenues from turboprop sales. Other notable new programs in the aviation segment include the Cessna Skycourier, which has garnered strong market interest, and the Citation Ascend, which is progressing through certification. Demand remains robust across all product lines, resulting in a backlog expansion to approximately $7.5 billion as of the second quarter's end. The Bell segment also demonstrated strong growth over the first half of 2024, primarily driven by military platforms while commercial sales have softened. Textron is ramping up on the...

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