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Textron Reports Modest Revenue Increase Driven by Higher Deliveries

Textron Reports Modest Revenue Increase Driven by Higher Deliveries
Textron announced a modest increase in second-quarter 2025 revenues within its Aviation segment, primarily driven by a rise in aircraft deliveries. The segment generated $1.5 billion in revenue, marking a 2.8% year-over-year growth. During the quarter, the company delivered 49 jets, up from 42 in the same period last year. These deliveries included six Longitudes, 12 Latitudes, eight King Airs, and four SkyCouriers.
Operational Improvements Amid Production Challenges
Textron chairman and CEO Scott C. Donnelly highlighted ongoing operational improvements as production ramped up. Nevertheless, the company continues to face potential disruptions stemming from the 2024 labor strike, which may affect delivery schedules in upcoming quarters. Despite the revenue growth, the Aviation segment’s profit declined by 7.6% year-over-year, falling to $180 million from $195 million. According to a Jefferies report, aviation margins contracted by 130 basis points to 11.9%, reflecting a $15 million profit decline attributed to product mix shifts and increased warranty costs. These factors were partially offset by manufacturing efficiencies and improved net pricing.
The quarter also saw a reduction in turboprop deliveries, with 34 units compared to 44 in the previous year, although service revenues increased by $7 million. At the end of the quarter, the segment’s backlog stood at $7.85 billion, a 5% increase year-over-year, resulting in a book-to-bill ratio of 0.99x.
First-Half Performance and Market Outlook
For the first half of 2025, Textron’s cumulative aviation revenues rose 2.4% to $2.7 billion, while segment profit declined 9% to $307 million. The company delivered 80 jets during this period. Jefferies estimates that Textron will need to deliver an additional 110 jets in the remaining quarters to reach a projected total of 190 for the year, although the company has not provided formal delivery guidance.
Market reactions to Textron’s results have been mixed. Some investors welcomed the steady revenue growth in the commercial aircraft and helicopter divisions, while others expressed concern over the modest overall increase and declining profitability. The competitive environment remains active, with industry peers such as Honeywell and Brunswick Corporation also releasing their second-quarter results and emphasizing their respective strengths.
As Textron contends with ongoing production challenges and a competitive marketplace, its ability to sustain revenue growth and enhance profitability will continue to be closely monitored by investors and industry analysts alike.

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