Joel Santos

Joel Santos asked about Textron Aviation's long-term margin target and the primary levers for improving profitability, such as volume, pricing, or mix. He also inquired if long lead times are hindering new orders and if increased production could boost bookings.

Answer

Scott Donnelly, Chairman, President, and CEO, stated that the biggest lever for improving profitability across Textron Aviation is volume, which drives conversion to the bottom line, alongside solid pricing. He acknowledged that long lead times can make commitment difficult but confirmed strong and steady market demand, reiterating a one-to-one book-to-bill expectation for the year and anticipating increased output in 2026 as manufacturing ramps up.

Joel Santos, on behalf of Gavin Parsons, questioned Textron Aviation's long-term margin target and the primary levers for improving profitability (volume, pricing, mix). He also asked if long lead times are hindering new orders and if increased production could boost bookings.

Answer

Scott Donnelly, Chairman, President, and CEO of Textron, stated that volume is the biggest lever for profitability, supported by good gross margins and solid pricing. He confirmed that long lead times can affect commitment but noted strong, steady market demand and a one-to-one book-to-bill ratio, expecting incremental volume in 2026 to drive higher aircraft output.