- EPS of $0.92; adjusted EPS of $1.05
- Net cash from operating activities of $153 million in the first quarter of 2023
- $377 million returned to shareholders through share repurchases in the first quarter
PROVIDENCE, R.I. — (BUSINESS WIRE) — April 27, 2023 — Textron Inc. (NYSE: TXT) today reported first quarter 2023 net income of $0.92 per share, as compared to $0.88 per share in the first quarter of 2022. Adjusted net income, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, was $1.05 per share for the first quarter of 2023, compared to $0.97 per share in the first quarter of 2022.
“In the quarter, we saw revenue growth at Aviation, Industrial and Systems,” said Textron Chairman and CEO Scott C. Donnelly. "At Bell, we expect to see revenue growth through the remainder of the year following the resolution of the FLRAA contract protest earlier this month, which allowed us to restart work on the program."
Cash Flow
Net cash provided by operating activities of the manufacturing group for the first quarter was $153 million, compared to $225 million last year. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $104 million for the first quarter, compared to $209 million last year.
In the quarter, Textron returned $377 million to shareholders through share repurchases.
First Quarter Segment Results
Textron Aviation
Textron Aviation’s revenues were $1.1 billion, up $109 million from last year's first quarter, reflecting higher pricing of $58 million and higher volume of $51 million, which included higher defense and aftermarket volume.
Textron Aviation delivered 35 jets in the quarter, down from 39 last year, and 34 commercial turboprops, up from 31 in last year's first quarter.
Segment profit was $125 million in the first quarter, up $15 million from a year ago, largely due to favorable pricing, net of inflation, and the impact from higher volume, partially offset by an unfavorable impact from performance.
Textron Aviation backlog at the end of the first quarter was $6.5 billion.
Bell
Bell revenues in the quarter were $621 million, down $213 million from the first quarter of 2022, due to lower military revenues, reflecting lower spares and support volume and V-22 and H-1 production volume.
Bell delivered 22 commercial helicopters in the quarter, down from 25 last year.
Segment profit of $60 million was down $31 million from last year's first quarter, largely due to lower volume and mix, partially offset by a favorable impact from performance of $29 million, reflecting lower research and development costs.
Bell backlog at the end of the first quarter was $4.6 billion.
Textron Systems
Revenues at Textron Systems were $306 million, up $33 million from last year's first quarter, largely reflecting higher volume.
Segment profit of $34 million was up $6 million, compared with the first quarter of 2022, primarily due to a favorable impact from performance.
Textron Systems’ backlog at the end of the first quarter was $2.0 billion.
Industrial
Industrial revenues were $932 million, up $94 million from last year's first quarter, largely due to higher volume and mix at both Textron Specialized Vehicles and Kautex.
Segment profit of $41 million was up $2 million from the first quarter of 2022, primarily due to higher volume and mix and a favorable impact from pricing, net of inflation, principally in the Specialized Vehicles product line, largely offset by an unfavorable impact from performance.
Textron eAviation
Textron eAviation segment revenues were $4 million and segment loss was $9 million in the first quarter of 2023, primarily related to research and development costs.
Finance
Finance segment revenues were $12 million, and profit was $8 million.
Conference Call Information
Textron will host its conference call today, April 27, 2023 at 8:00 a.m. (Eastern) to discuss its results and outlook. The call will be available via webcast at www.textron.com or by direct dial at (844) 867-6169 in the U.S. or (409) 207-6975 outside of the U.S.; Access Code: 7265882.
In addition, the call will be recorded and available for playback beginning at 11:00 a.m. (Eastern) on Thursday, April 27, 2023 by dialing (402) 970-0847; Access Code: 4732406.
A package containing key data that will be covered on today’s call can be found in the Investor Relations section of the company’s website at www.textron.com.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell, Cessna, Beechcraft, Hawker, Pipistrel, Jacobsen, Kautex, Lycoming, E-Z-GO, Arctic Cat, and Textron Systems. For more information visit: www.textron.com.
Forward-looking Information
Certain statements in this release and other oral and written statements made by us from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “guidance,” “project,” “target,” “potential,” “will,” “should,” “could,” “likely” or “may” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: Interruptions in the U.S. Government’s ability to fund its activities and/or pay its obligations; changing priorities or reductions in the U.S. Government defense budget, including those related to military operations in foreign countries; our ability to perform as anticipated and to control costs under contracts with the U.S. Government; the U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards; changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products; volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our products; volatility in interest rates or foreign exchange rates and inflationary pressures; risks related to our international business, including establishing and maintaining facilities in locations around the world and relying on joint venture partners, subcontractors, suppliers, representatives, consultants and other business partners in connection with international business, including in emerging market countries; our Finance segment’s ability to maintain portfolio credit quality or to realize full value of receivables; performance issues with key suppliers or subcontractors; legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products; our ability to control costs and successfully implement various cost-reduction activities; the efficacy of research and development investments to develop new products or unanticipated expenses in connection with the launching of significant new products or programs; the timing of our new product launches or certifications of our new aircraft products; our ability to keep pace with our competitors in the introduction of new products and upgrades with features and technologies desired by our customers; pension plan assumptions and future contributions; demand softness or volatility in the markets in which we do business; cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or, operational disruption; difficulty or unanticipated expenses in connection with integrating acquired businesses; the risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not achieve revenue and profit projections; the impact of changes in tax legislation; risks and uncertainties related to the ongoing impacts of the COVID-19 pandemic and the war between Russia and Ukraine on our business and operations; and the ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
