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Sep 28, 2024

Textron Q3 2024 Earnings Report

Textron's Q3 2024 performance was impacted by a labor strike at Textron Aviation, but Bell achieved a key milestone with the U.S. Army's approval of Milestone B for the FLRAA program.

Key Takeaways

Textron reported EPS of $1.18 and adjusted EPS of $1.40 for Q3 2024. The results were impacted by a strike at Textron Aviation, which lowered revenues by approximately $50 million and segment profit by approximately $30 million. Bell achieved a key milestone on the FLRAA program.

EPS was $1.18; adjusted EPS was $1.40, down from $1.49 in the prior year.

Net cash from operating activities was $208 million.

$215 million was returned to shareholders through share repurchases.

Textron Aviation segment revenue and profit were impacted by the IAM strike.

Total Revenue
$3.43B
Previous year: $3.34B
+2.5%
EPS
$1.4
Previous year: $1.49
-6.0%
Cash and Equivalents
$1.29B
Previous year: $1.67B
-22.9%

Textron

Textron

Textron Revenue by Segment

Forward Guidance

Textron now expects 2024 adjusted earnings per share from continuing operations to be in a range of $5.40 to $5.60, down from its previous outlook of $6.20 to $6.40. Manufacturing cash flow before pension contributions is now expected to be in a range of $650 million to $750 million, as compared to its previous outlook of $0.9 billion to $1.0 billion, with planned pension contributions of about $50 million.

Challenges Ahead

  • Revenue and segment profit to be unfavorably impacted in the fourth quarter of 2024 related to the labor disruption.
  • The recovery of production and delivery activities as employees return to work will have a negative impact.
  • 2024 adjusted earnings per share from continuing operations is expected to be in a range of $5.40 to $5.60, down from its previous outlook of $6.20 to $6.40.
  • Manufacturing cash flow before pension contributions is now expected to be in a range of $650 million to $750 million, as compared to its previous outlook of $0.9 billion to $1.0 billion.
  • Planned pension contributions of about $50 million.