Doug Harnett

Doug Harnett asked about the stable mix of business jet deliveries, inquiring if it's constrained by demand or capacity, and how the demand mix (corporate vs. high net worth) has shifted from the beginning of the year given the dynamic economic outlook.

Answer

Scott Donnelly, Chairman, President, and CEO of Textron, indicated that the delivery mix is primarily a capacity issue, with steady end-market demand across all products, often influenced by new product launches. He noted remarkable stability in demand across segments despite economic noise, attributing it to long lead times that encourage buyers to look beyond immediate market conditions.

Doug Harnett observed that the mix of business jet deliveries has been stable over the last two years, contrary to an expected shift towards Latitude and Longitude, and asked if this mix is constrained by demand or capacity. He also inquired about any shifts in demand mix between corporate and high-net-worth individuals over the past nine months, despite the dynamic economic outlook.

Answer

Scott Donnelly, Chairman, President, and CEO, clarified that the delivery mix is currently more of a capacity issue, as end-market demand remains stable across the entire product portfolio. He noted that new product launches, such as the CJ4 Gen 2 and Ascend, often create spikes in order activity, extending lead times. Mr. Donnelly also remarked on the remarkable stability of demand across all segments (corporate and high-net-worth) despite economic noise, attributing it partly to long lead times that encourage customers to look beyond current market fluctuations.