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Mar 29
Textron Q1 2025 Earnings Report
Textron reported steady earnings growth in Q1 2025 with robust contributions from Bell and a completed divestiture in its Industrial segment.
Key Takeaways
Textron delivered strong Q1 2025 results with notable performance in its Bell segment, improved adjusted EPS, and a completed sale of its Powersports business, despite a decline in operating cash flow.
Adjusted EPS rose to $1.28, up from $1.20 last year.
Bell segment saw strong growth with increased helicopter deliveries.
Textron completed the divestiture of its Powersports business.
Operating cash flow dropped to -$114M due to higher inventory and working capital usage.
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Textron Revenue by Segment
Forward Guidance
Textron reaffirmed its full-year 2025 guidance, expecting adjusted EPS between $6.00 and $6.20 and strong operational cash flow.
Positive Outlook
- Adjusted EPS expected to range between $6.00 and $6.20.
- Operating cash flow forecast between $1.2B and $1.3B.
- Manufacturing cash flow before pensions expected to hit $800M–$900M.
- Strong backlog at Bell and Textron Aviation supports continued demand.
- Pension contributions remain stable at $50M for the year.
Challenges Ahead
- High inventory levels impacted Q1 cash flow.
- Lower volume in Textron Systems following Shadow program cancellation.
- Reduced aircraft deliveries at Textron Aviation.
- Industrial segment revenues declined due to volume and mix.
- Finance segment profitability dropped year-over-year.