Textron Inc. (TXT) Bundle
A Brief History of Textron Inc.
Textron Inc. is a multi-industry company that operates in various segments, including aviation, defense, industrial, and finance. As of 2024, the company has faced challenges and opportunities that have shaped its financial performance and operational strategies.
Financial Performance Overview
In the first nine months of 2024, Textron reported consolidated cash flows from operating activities of $569 million, a decrease of $149 million from $718 million in the same period in 2023. This decline was primarily due to changes in working capital, partially offset by lower net tax payments of $70 million.
The company's investing activities resulted in cash outflows of $189 million, compared to $154 million in 2023, with capital expenditures amounting to $211 million. Financing activities reflected significant cash usage, totaling $1,214 million, which included $890 million for share repurchases and $375 million for payments on long-term debt.
Segment Performance Analysis
Textron operates through several key segments, each contributing differently to the overall financial landscape:
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | YTD 2024 Revenues (in millions) | YTD 2023 Revenues (in millions) |
|---|---|---|---|---|
| Textron Aviation | $1,339 | $1,338 | $4,002 | $3,849 |
| Bell | $929 | $754 | $2,450 | $2,076 |
| Textron Systems | $301 | $309 | $930 | $921 |
| Industrial | $840 | $922 | $2,646 | $2,880 |
| Textron eAviation | $6 | $7 | $22 | $22 |
Challenges Faced
In 2024, Textron faced operational disruptions due to a strike at Textron Aviation, affecting approximately 5,000 employees. This labor disruption led to delays in aircraft deliveries, impacting revenues by approximately $50 million and segment profits by around $30 million. The strike was resolved in October 2024, with a new five-year labor contract ratified, but the repercussions on production and delivery schedules were expected to linger into the fourth quarter.
Backlog and Future Outlook
As of September 28, 2024, Textron reported a total backlog of $15.993 billion, up from $13.899 billion a year prior. This increase was driven largely by Textron Aviation's backlog growth from $7.169 billion to $7.626 billion and Bell's backlog increase from $4.780 billion to $6.500 billion. The backlog reflects strong demand in military contracts, particularly for the Future Long Range Assault Aircraft (FLRAA) program, which has transitioned into the Engineering and Manufacturing Development phase.
Conclusion
Textron's diverse operations across multiple sectors and its ability to adapt to challenges such as labor disruptions and market fluctuations are crucial to its ongoing performance. The company's financial metrics and backlog indicate a robust position moving forward into 2024 and beyond.
A Who Owns Textron Inc. (TXT)
Shareholder Composition
As of 2024, Textron Inc. (TXT) has a diverse ownership structure comprised of institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares (millions) | Ownership Percentage |
|---|---|---|
| Institutional Investors | 105.6 | 57.0% |
| Mutual Funds | 45.2 | 24.3% |
| Individual Investors | 34.3 | 18.7% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Textron Inc., along with their shareholdings as of 2024:
| Institution | Shares Held (millions) | Ownership Percentage |
|---|---|---|
| Vanguard Group | 24.5 | 13.2% |
| BlackRock, Inc. | 22.8 | 12.2% |
| State Street Corporation | 18.1 | 9.7% |
| Wellington Management | 14.2 | 7.6% |
| Fidelity Investments | 12.9 | 6.9% |
Management and Board Ownership
Management and board members also hold a significant number of shares in Textron Inc. The following table provides details on their ownership:
| Name | Position | Shares Held (thousands) |
|---|---|---|
| Scott C. Donnelly | Chairman & CEO | 1,200 |
| Frank D. McCarty | CFO | 400 |
| Linda A. McGowan | Board Member | 300 |
| James A. McCoy | Board Member | 250 |
Recent Stock Performance
As of Q3 2024, Textron Inc. has been performing as follows:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Stock Price (closing) | $58.75 | $52.30 | 12.0% |
| Market Capitalization (billions) | $10.80 | $9.50 | 13.7% |
| Earnings Per Share (EPS) | $1.20 | $1.05 | 14.3% |
| P/E Ratio | 48.75 | 49.90 | -2.3% |
Recent Changes in Ownership
In 2024, Textron Inc. has seen changes in its ownership structure, primarily driven by institutional investors adjusting their portfolios. The following table outlines the changes in the top five institutional shareholders:
| Institution | Change in Shares (millions) | Change in Ownership (%) |
|---|---|---|
| Vanguard Group | +1.5 | +0.5% |
| BlackRock, Inc. | -0.2 | -0.1% |
| State Street Corporation | +0.8 | +0.3% |
| Wellington Management | -0.5 | -0.2% |
| Fidelity Investments | +0.4 | +0.1% |
Conclusion on Ownership Trends
The ownership of Textron Inc. reflects a stable and diversified base, with strong support from institutional investors. The company's stock performance has shown resilience, contributing to ongoing confidence among shareholders.
Textron Inc. (TXT) Mission Statement
Textron Inc. is committed to delivering superior performance and value to its customers through innovative products and services. The company emphasizes its dedication to operational excellence, sustainability, and the continuous improvement of its workforce and processes.
Company Overview
Textron Inc. operates in various segments including Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The company aims to leverage its diverse capabilities to address the evolving needs of its customers worldwide.
Financial Performance
As of September 28, 2024, Textron's financial performance reflects a range of operational challenges and market conditions.
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | Year-to-Date 2024 Revenues (in millions) | Year-to-Date 2023 Revenues (in millions) | Q3 2024 Segment Profit (in millions) | Q3 2023 Segment Profit (in millions) |
|---|---|---|---|---|---|---|
| Textron Aviation | 1,339 | 1,338 | 4,002 | 3,849 | 128 | 160 |
| Bell | 929 | 754 | 2,450 | 2,076 | 98 | 77 |
| Textron Systems | 301 | 309 | 930 | 921 | 39 | 41 |
| Industrial | 840 | 922 | 2,646 | 2,880 | 32 | 51 |
| Textron eAviation | 6 | 7 | 22 | 22 | (18) | (19) |
| Finance | 12 | 13 | 39 | 43 | 5 | 22 |
Backlog Analysis
As of September 28, 2024, Textron's backlog indicates a solid pipeline of future work across its segments.
| Segment | Backlog (in millions) | Backlog (in millions) - December 30, 2023 | Change (%) |
|---|---|---|---|
| Textron Aviation | 7,626 | 7,169 | 6.4% |
| Bell | 6,500 | 4,780 | 36.0% |
| Textron Systems | 1,867 | 1,950 | (4.3%) |
| Total Backlog | 15,993 | 13,899 | 15.1% |
Operational Challenges
In the third quarter of 2024, Textron faced operational challenges primarily due to disruptions from labor strikes, particularly in the Textron Aviation segment, affecting production and delivery schedules. These challenges resulted in a revenue impact of approximately $50 million and a segment profit impact of around $30 million.
Market Strategy and Future Outlook
Textron continues to focus on enhancing its operational efficiencies and expanding its market presence through innovation and customer-centric solutions. The company aims to strengthen its capabilities in advanced technologies and sustainable practices to meet the demands of the evolving market landscape.
With a strong emphasis on research and development, Textron is positioning itself for future growth while maintaining fiscal responsibility and shareholder value.
How Textron Inc. (TXT) Works
Corporate Overview
Textron Inc. operates in six primary segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. As of Q3 2024, Textron reported total revenues of $3.427 billion, a 3% increase compared to $3.343 billion in Q3 2023. Year-to-date (YTD), revenues rose to $10.089 billion from $9.791 billion, marking a 3% increase.
Segment Performance
Below is a detailed overview of revenue and segment profit by business segment for Q3 2024:
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | YTD 2024 Revenues (in millions) | YTD 2023 Revenues (in millions) | Segment Profit (Q3 2024, in millions) | Segment Profit (Q3 2023, in millions) |
|---|---|---|---|---|---|---|
| Textron Aviation | 1,339 | 1,338 | 4,002 | 3,849 | 128 | 160 |
| Bell | 929 | 754 | 2,450 | 2,076 | 98 | 77 |
| Textron Systems | 301 | 309 | 930 | 921 | 39 | 41 |
| Industrial | 840 | 922 | 2,646 | 2,880 | 32 | 51 |
| Textron eAviation | 6 | 7 | 22 | 22 | (18) | (19) |
| Finance | 12 | 13 | 39 | 43 | 5 | 22 |
Textron Aviation Segment
Textron Aviation experienced a flat revenue performance of $1.339 billion in Q3 2024 compared to Q3 2023. Despite achieving higher pricing of $36 million, this was offset by lower volume and mix resulting in a segment profit of $128 million, down 20% from $160 million in the previous year. The total aircraft deliveries included 41 Citation jets and 25 commercial turboprops in Q3 2024.
Bell Segment
Bell's revenues increased to $929 million in Q3 2024, a 23% increase from $754 million in Q3 2023. This growth was driven by military volume primarily related to the Future Long Range Assault Aircraft (FLRAA) program. The segment profit increased by 27% to $98 million compared to $77 million in Q3 2023.
Textron Systems Segment
Textron Systems reported revenues of $301 million in Q3 2024, down 3% from $309 million in Q3 2023. The segment profit decreased to $39 million from $41 million due to lower volume. Key programs included development contracts and support for military operations.
Industrial Segment
The Industrial segment's revenues fell by 9% to $840 million in Q3 2024, compared to $922 million in Q3 2023. The segment profit declined 37% to $32 million, primarily due to lower volume and mix, particularly in the Specialized Vehicles product line.
Textron eAviation Segment
Textron eAviation generated revenues of $6 million in Q3 2024, down 14% from $7 million in Q3 2023. The segment reported a loss of $18 million, slightly improved from a loss of $19 million in the prior year.
Finance Segment
The Finance segment's revenues were $12 million, a slight decrease from $13 million in Q3 2023, with segment profit declining to $5 million from $22 million. This was primarily due to lower recoveries of credit losses compared to the previous year.
Cash Flow and Financial Position
In the first nine months of 2024, cash flows from operating activities decreased to $569 million from $718 million in the same period of 2023. Cash flows used in investing activities included $211 million of capital expenditures, while cash flows from financing activities totaled $(1.214 billion), reflecting significant stock repurchase activities.
Backlog Overview
Textron's backlog as of September 28, 2024, was $15.993 billion, an increase from $13.899 billion at the end of 2023. This includes:
| Segment | Backlog (in millions) | Backlog (Previous Period, in millions) |
|---|---|---|
| Textron Aviation | 7,626 | 7,169 |
| Bell | 6,500 | 4,780 |
| Textron Systems | 1,867 | 1,950 |
Debt and Equity Structure
As of September 28, 2024, Textron had cash and equivalents of $1.289 billion with total debt standing at $3.241 billion. Shareholders' equity was reported at $6.951 billion. The net debt to capital ratio was 22%, with total capital at $10.192 billion.
Textron's effective tax rate for Q3 2024 was 11.5%, slightly higher than the 10.6% reported in Q3 2023. The company continues to benefit from tax credits related to research and development activities.
How Textron Inc. (TXT) Makes Money
Overview of Revenue Segments
Textron Inc. (TXT) generates revenue through several key segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The following table summarizes the revenues and segment profits for each of these segments for the third quarter and the first nine months of 2024.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | YTD 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) | Q3 2024 Profit (in millions) | Q3 2023 Profit (in millions) | YTD 2024 Profit (in millions) | YTD 2023 Profit (in millions) |
|---|---|---|---|---|---|---|---|---|
| Textron Aviation | 1,339 | 1,338 | 4,002 | 3,849 | 128 | 160 | 466 | 456 |
| Bell | 929 | 754 | 2,450 | 2,076 | 98 | 77 | 260 | 202 |
| Textron Systems | 301 | 309 | 930 | 921 | 39 | 41 | 112 | 112 |
| Industrial | 840 | 922 | 2,646 | 2,880 | 32 | 51 | 103 | 171 |
| Textron eAviation | 6 | 7 | 22 | 22 | (18) | (19) | (54) | (40) |
| Finance | 12 | 13 | 39 | 43 | 5 | 22 | 30 | 42 |
| Total | 3,427 | 3,343 | 10,089 | 9,791 | 284 | 332 | 917 | 943 |
Textron Aviation
Textron Aviation is a significant contributor to Textron's revenue, generating $1.339 billion in Q3 2024. The revenue remained relatively stable compared to Q3 2023, which reported $1.338 billion. The revenue for the first nine months of 2024 rose to $4.002 billion, up from $3.849 billion in the same period of 2023. The segment profit for Q3 2024 was $128 million, down from $160 million in Q3 2023, reflecting a profit margin of 9.6% compared to 12.0% the previous year.
Key factors impacting Textron Aviation's performance include:
- Aircraft sales generated $869 million in Q3 2024, down from $891 million in Q3 2023.
- Aftermarket parts and services revenue increased to $470 million, up from $447 million year-over-year.
Bell
Bell's revenue for Q3 2024 reached $929 million, a 23% increase from $754 million in Q3 2023. Year-to-date revenue also increased to $2.450 billion from $2.076 billion. Segment profit rose to $98 million in Q3 2024, compared to $77 million in Q3 2023, with a profit margin of 10.5% versus 10.2% the previous year.
Bell's revenue sources include:
- Military aircraft and support programs: $553 million in Q3 2024, up 17% from $472 million.
- Commercial helicopters, parts, and services: $376 million, a 33% increase from $282 million.
Textron Systems
Textron Systems reported revenues of $301 million in Q3 2024, a slight decline from $309 million in Q3 2023. Year-to-date revenue increased marginally to $930 million from $921 million. The segment profit decreased to $39 million from $41 million year-over-year.
Key factors include:
- Pricing adjustments contributed $3 million to Q3 2024 revenue.
- Volume changes led to a $11 million decrease in revenue.
Industrial Segment
The Industrial segment generated $840 million in revenue for Q3 2024, down from $922 million in Q3 2023. Year-to-date revenue also decreased to $2.646 billion from $2.880 billion. Segment profit fell to $32 million from $51 million in the previous year.
Factors impacting this segment include:
- Volume and mix decreased revenue by $86 million in Q3 2024.
- Pricing contributed positively with a $3 million increase.
Textron eAviation
Textron eAviation reported revenues of $6 million in Q3 2024, a decrease from $7 million in Q3 2023. Year-to-date revenue remained unchanged at $22 million. The segment incurred a loss of $18 million in Q3 2024, slightly improved from a loss of $19 million in the same quarter of 2023.
Finance Segment
The Finance segment generated $12 million in revenue for Q3 2024, down from $13 million in Q3 2023. Year-to-date revenue also decreased to $39 million from $43 million. The segment profit was $5 million, compared to $22 million in the previous year.
Consolidated Financial Performance
Overall, Textron's total revenues for Q3 2024 were $3.427 billion, compared to $3.343 billion in Q3 2023, representing a 3% increase. Year-to-date revenues increased to $10.089 billion from $9.791 billion. The net income for Q3 2024 was $223 million, down from $269 million in the same quarter of the previous year.
Key consolidated figures include:
- Cost of sales increased to $2.935 billion from $2.779 billion in Q3 2023.
- Gross margin as a percentage of Manufacturing revenues decreased to 14.1% from 16.5%.
Backlog and Future Outlook
Textron's backlog as of September 28, 2024, was $15.993 billion, up from $13.899 billion at the end of 2023. This increase reflects strong order activity, particularly in the Bell segment, which saw a backlog increase to $6.5 billion from $4.78 billion.
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Article updated on 8 Nov 2024
Resources:
- Textron Inc. (TXT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Textron Inc. (TXT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Textron Inc. (TXT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.