Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

73139691cad8ad8685896cdabfd581faa24dc2b3c843d4c9709a3a893e0fecd3

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

9f86433a0bea1685e43f51fb69a8bddf2c7a422c82e6817d887215929bd486ad

| Business Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Textron Aviation ($ million) | **1,600**  **[TXT_3160068_2]**  | **1,149**  **[0000217346-23-000009_q1238-kex991.htm:0]** **[0000217346-23-000014_txt-20230401.htm:13]**  | **1,362**  **[0000217346-23-000023_txt-20230701.htm:15]**  | **1,338**  **[0000217346-23-000033_txt-20230930.htm:16]**  | **1,500**  **[TXT_3370675_4]** **[0000217346-24-000014_q4238-kex991.htm:0]**  | **1,188**  **[0000217346-24-000052_txt-20240330.htm:14]**  | **1,475**  **[0000217346-24-000081_q2248-kex991.htm:0]**  | **1,339**  **[0000217346-24-000092_txt-20240928.htm:16]**  |
| Bell ($ million) | **816**  **[TXT_3160068_2]**  | **621**  **[0000217346-23-000009_q1238-kex991.htm:0]** **[0000217346-23-000014_txt-20230401.htm:13]**  | **701**  **[0000217346-23-000023_txt-20230701.htm:15]**  | **754**  **[0000217346-23-000033_txt-20230930.htm:16]**  | **1,100**  **[TXT_3370675_4]** **[0000217346-24-000014_q4238-kex991.htm:0]**  | **727**  **[0000217346-24-000052_txt-20240330.htm:14]**  | **794**  **[0000217346-24-000081_q2248-kex991.htm:0]**  | **929**  **[0000217346-24-000092_txt-20240928.htm:16]**  |
| Textron Systems ($ million) | **314**  **[TXT_3160068_2]**  | **306**  **[0000217346-23-000009_q1238-kex991.htm:0]** **[0000217346-23-000014_txt-20230401.htm:13]**  | **306**  **[0000217346-23-000023_txt-20230701.htm:15]**  | **309**  **[0000217346-23-000033_txt-20230930.htm:16]**  | **314**  **[TXT_3370675_4]** **[0000217346-24-000014_q4238-kex991.htm:1]**  | **306**  **[0000217346-24-000052_txt-20240330.htm:14]**  | **323**  **[0000217346-24-000081_q2248-kex991.htm:0]**  | **301**  **[0000217346-24-000092_txt-20240928.htm:16]**  |
| Industrial ($ million) | **907**  **[TXT_3160068_2]**  | **932**  **[0000217346-23-000009_q1238-kex991.htm:0]** **[0000217346-23-000014_txt-20230401.htm:13]**  | **1,026**  **[0000217346-23-000023_txt-20230701.htm:15]**  | **922**  **[0000217346-23-000033_txt-20230930.htm:16]**  | **961**  **[TXT_3370675_4]** **[0000217346-24-000014_q4238-kex991.htm:1]**  | **892**  **[0000217346-24-000052_txt-20240330.htm:14]**  | **914**  **[0000217346-24-000081_q2248-kex991.htm:0]**  | **840**  **[0000217346-24-000092_txt-20240928.htm:16]**  |
| Textron eAviation ($ million) | **6**  **[TXT_3160068_2]**  | **4**  **[0000217346-23-000009_q1238-kex991.htm:0]** **[0000217346-23-000014_txt-20230401.htm:13]**  | **11**  **[0000217346-23-000023_txt-20230701.htm:15]**  | **7**  **[0000217346-23-000033_txt-20230930.htm:16]**  | **10**  **[TXT_3370675_4]** **[0000217346-24-000014_q4238-kex991.htm:1]**  | **7**  **[0000217346-24-000052_txt-20240330.htm:14]**  | **9**  **[0000217346-24-000081_q2248-kex991.htm:0]**  | **6**  **[0000217346-24-000092_txt-20240928.htm:16]**  |
| Finance ($ million) | **11**  **[TXT_3160068_2]**  | **12**  **[0000217346-23-000009_q1238-kex991.htm:0]** **[0000217346-23-000014_txt-20230401.htm:13]**  | **18**  **[0000217346-23-000023_txt-20230701.htm:15]**  | **13**  **[0000217346-23-000033_txt-20230930.htm:16]**  | **12**  **[TXT_3370675_4]** **[0000217346-24-000014_q4238-kex991.htm:1]**  | **15**  **[0000217346-24-000052_txt-20240330.htm:14]**  | **12**  **[0000217346-24-000081_q2248-kex991.htm:0]**  | **12**  **[0000217346-24-000092_txt-20240928.htm:16]**  |

23dac4428348a29d44757de9209bf8bcd54b4cbc9adeff8b789e2a5895ad9f58

Textron Inc. is a multi-industry company known for its diverse operations across several segments, including aviation, defense, and industrial products. The company manufactures a range of products such as Cessna and Beechcraft aircraft, military and commercial helicopters, and specialized vehicles, while also providing financing solutions for its aviation and helicopter products **[0000217346-24-000017_txt-20231230.htm:3]** **[0000217346-24-000017_txt-20231230.htm:43]** **[0000217346-24-000017_txt-20231230.htm:4]** **[0000217346-24-000092_txt-20240928.htm:16]** **[0000217346-24-000017_txt-20231230.htm:6]**. Textron is committed to innovation, particularly in sustainable aviation solutions through its eAviation segment **[0000217346-24-000017_txt-20231230.htm:6]**.

1. **Textron Aviation** - Leads in general aviation by manufacturing Cessna and Beechcraft aircraft.
2. **Industrial** - Designs and manufactures automotive and specialized vehicles, including Kautex and Specialized Vehicles.
3. **Bell** - Produces military and commercial helicopters and tiltrotor aircraft.
4. **Textron Systems** - Focuses on defense products, including unmanned systems and armored vehicles.
5. **Textron eAviation** - Develops sustainable aviation solutions, including electric aircraft.
6. **Finance** - Provides financing solutions primarily for Textron Aviation and Bell products.

933aaa4b5bc8afa8488d625633a439abc4a8b8092899e1163abcb2b7b78e31e7

| Metric [USD Million] | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States        | **9,305**  **[0000217346-24-000017_txt-20231230.htm:84]**  | **2,250**  **[0000217346-23-000033_txt-20230930.htm:17]**  | **2,318**  **[0000217346-23-000023_txt-20230701.htm:16]**  | **2,070**  **[0000217346-23-000014_txt-20230401.htm:13]**  | **8,702**  **[0000217346-23-000006_txt-20221231.htm:83]**  | N/A | N/A | N/A |
| Europe               | **1,414**  **[0000217346-24-000017_txt-20231230.htm:84]**  | **360**  **[0000217346-23-000033_txt-20230930.htm:17]**  | **417**  **[0000217346-23-000023_txt-20230701.htm:16]**  | **305**  **[0000217346-23-000014_txt-20230401.htm:13]**  | **1,468**  **[0000217346-23-000006_txt-20221231.htm:83]**  | N/A | N/A | N/A |
| Other International  | **2,964**  **[0000217346-24-000017_txt-20231230.htm:84]**  | **733**  **[0000217346-23-000033_txt-20230930.htm:17]**  | **689**  **[0000217346-23-000023_txt-20230701.htm:16]**  | **649**  **[0000217346-23-000014_txt-20230401.htm:13]**  | **2,699**  **[0000217346-23-000006_txt-20221231.htm:83]**  | N/A | N/A | N/A |
| Total Revenue        | N/A | **3,343**  **[0000217346-23-000033_txt-20230930.htm:17]**  | **3,424**  **[0000217346-23-000023_txt-20230701.htm:16]**  | **3,024**  **[0000217346-23-000014_txt-20230401.htm:13]**  | **12,869**  **[0000217346-23-000006_txt-20221231.htm:83]**  | N/A | N/A | N/A |

d91a4cce4b25000a95b58a4a8d7d21028052b35bd18e886d7c8ef59b2f2cf219

4818902122750df5b5baefc7eef590a92338fa630d5a6bfa3e64a9264096beba

e25bc438b98f7fc6461afb6c3a52d81b526df00c0ee4f07455953cc27f63a316

1. **Given the ongoing softness in certain Industrial markets and your expectation of revenues around $3.5 billion with a segment margin of about 4%  **[TXT_3403594_4]** **[TXT_3403594_22]** , could you elaborate on the specific restructuring plans you have, and how they will address the challenges in the softer market segments?**

2. **With eAviation expected to have revenues of about $35 million and a segment margin loss of around $75 million  **[TXT_3403594_4]** , what is your roadmap for eAviation, and how do you plan to turn this segment profitable?**

3. **The five-week strike in your Aviation segment resulted in a $0.5 billion revenue adjustment and production inefficiencies  **[TXT_3403594_12]** **[TXT_3403594_5]** ; what measures are you taking to mitigate the impact on your financials, and how will this affect your production and delivery schedules going into 2025?**

4. **Auto markets are down globally, especially in Europe where volumes are below expectations  **[TXT_3403594_9]** ; how is this affecting your Kautex business, and what strategies are in place to navigate the challenges in the European automotive sector within your Industrial segment?**

5. **You mentioned ongoing supply chain issues and the focus on getting parts from suppliers to ramp up production post-strike  **[TXT_3403594_5]** **[TXT_3403594_19]** ; can you provide more details on the specific supply chain bottlenecks you're facing, and how confident are you that these issues will not hinder your capacity expansion and revenue growth plans for 2025?**

ad81d82008d6a601985ff88ffb752c06ec95d37c7d8bd028477be5c25f74f18f

39bc84459d9e13ecada530147eed9c59a0acba336388983d0d7580aa4f5d225d

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Textron Aviation**:
     - Total year revenue: About **$5.5 billion**.
     - Expected segment margin: Around **11%**.
  2. **Bell**:
     - Total year revenue outlook: Unchanged.
     - Improved segment margin: In the range of **10.5% to 11%**.
  3. **Textron Systems**:
     - Revenue outlook: Unchanged.
     - Segment margin: Estimated at the top end or slightly above the original guidance range of **11% to 12%**.
  4. **Industrial**:
     - Expected revenues: About **$3.5 billion**.
     - Expected segment margin: Around **4%**.
  5. **eAviation**:
     - Expected revenue: About **$35 million**.
     - Segment margin: Unchanged at a loss of around **$75 million**.
  6. **Finance**:
     - Expected revenue: About **$50 million**.
     - Segment margin: Around **$30 million**.
  7. **Corporate Expenses**:
     - Expected to be around **$135 million**.
  8. **Interest Expense**:
     - Expected to be about **$85 million**.
  9. **Tax Rate**:
     - Expected tax rate: **17.5%**.
  10. **Adjusted Earnings Per Share (EPS)**:
      - Expected to be in a range of **$5.40 to $5.60** per share, down from the previous outlook of **$6.20 to $6.40** per share.
  11. **Manufacturing Cash Flow Before Pension Contributions**:
      - Expected to be in the range of **$650 million to $750 million**, compared to the previous outlook of **$900 million to $1 billion**.
  12. **Planned Pension Contributions**:
      - About **$50 million**.

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Aviation Segment**:
     - Expected to be a **$6 billion business for the year**.
     - Margins expected to be in the **mid-12% range** for the remainder of the year.
  2. **Industrial Segment**:
     - Expected to be a little below guidance due to lower volume.
     - Margins expected to improve sequentially, currently running about **100 basis points below** where they should be.
  3. **Overall Business**:
     - **1 to 1 book-to-bill ratio** expected for the year.
     - Manufacturing cash flow before pension contributions was **$320 million** in the quarter.
     - Capital expenditures (CapEx) guidance for the year is **$425 million**.
  4. **Supply Chain and Inventory**:
     - Supply chain issues continue, with inventory levels expected to grow year-over-year.

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year Adjusted Earnings Per Share (EPS)**: Expected to be in the range of **$6.20 to $6.40 per share**.
  2. **Full Year Manufacturing Cash Flow Before Pension Contributions**: Expected to be between **$900 million to $1 billion**.
  3. **Stock Buyback**: Indicated to be on the higher side of **5%** for the year.
  4. **Restructuring Plan**: Expanded to a range of **$165 million to $170 million** in pretax special charges.
  5. **Restructuring Savings**: Expected to be approximately **$185 million** on a run-rate basis.
  6. **Additional Restructuring Cash Impact**: An additional **$20 million** in 2024, with overall cash for restructuring expected to be **$60 million to $65 million**.

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenues**: Projected to be about **$14.6 billion**, up 7% from 2023.
  2. **Adjusted EPS**: Expected to be in the range of **$6.20 to $6.40** per share.
  3. **Manufacturing Cash Flow**: Before pension contributions, expected to be in the range of **$900 million to $1 billion**.
  4. **Textron Aviation**:
     - Revenues: About **$6 billion**.
     - Segment Margin: Expected to be in the range of approximately **12% to 13%**.
  5. **Bell**:
     - Revenues: About **$3.5 billion**.
     - Segment Margin: Forecasted in the range of **9.5% to 10.5%**.
  6. **Systems**: Slightly higher revenue as new programs continue to ramp.
  7. **Industrial**: Expected flat revenues.
  8. **Corporate Expense**: Projected to be about **$160 million**.
  9. **Net Interest Expense**: Projected to be about **$90 million**.
  10. **LIFO Inventory Provision**: Projected to be about **$110 million**.
  11. **Intangible Asset Amortization**: Projected to be about **$35 million**.
  12. **Nonservice Pension Income**: Projected to be about **$265 million**.
  13. **Effective Tax Rate**: Expected to be approximately **17.5%**.
  14. **R&D Expense**: Expected to be about **$550 million**.
  15. **Capital Expenditures (CapEx)**: Estimated to be about **$425 million**.
  16. **Average Share Count**: Assumed to be about **191 million shares** in 2024.

60054dbade88c9718e40fe730ef45ad048c82cb8121c743e24bd492d12ed2f7a

United States

Europe

Asia and Australia

Canada

Latin and South America

Middle East and Africa

International

Other International

Total Revenue

5b820a35bd38133c0dbaac1348d8c8bb6a04cf50dd32b5ef6f94862b9a3c6a5f

Number of Citation jets delivered (Aircraft)

Number of commercial turboprops delivered (Aircraft)

Number of commercial helicopters delivered (Aircraft)

Backlog for Textron Aviation (USD millions)

Backlog for Bell (USD millions)

Backlog for Textron Systems (USD millions)

Total backlog (USD millions)

60+ days contractual delinquency as a percentage of finance receivables (percentage)

Nonaccrual finance receivables as a percentage of finance receivables (percentage)

Nonaccrual finance receivables (USD millions)

Ratio of allowance for credit losses to finance receivables (percentage)

c3dea48f4d6b0d7a564e51b2d35381e8e2063e522dc07814cb48d93054c8500a

| Name               | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Scott C. Donnelly  | Chairman, President, and Chief Executive Officer                         | June 2008           | Scott C. Donnelly joined Textron in **June 2008** as Executive Vice President and Chief Operating Officer. He became CEO in **December 2009** and Chairman in **September 2010**  **[0000217346-24-000017_txt-20231230.htm:12]** **[0001552781-24-000070_e24044_txt-def14a.htm:7]** .                                                        |
| Frank T. Connor    | Executive Vice President and Chief Financial Officer                     | August 2009         | Frank T. Connor joined Textron in **August 2009**. He announced his retirement effective **February 28, 2025**  **[0000217346-24-000017_txt-20231230.htm:12]** **[0000217346-23-000006_txt-20221231.htm:12]** .                                                                                   |
| Julie G. Duffy     | Executive Vice President and Chief Human Resources Officer               | April 2022          | Julie G. Duffy was named Executive Vice President, Human Resources in **July 2017** and assumed her current role in **April 2022**. She joined Textron in **1997**  **[0000217346-24-000017_txt-20231230.htm:12]** **[0000217346-23-000006_txt-20221231.htm:12]** .                                |
| E. Robert Lupone   | Executive Vice President, General Counsel, Secretary, and Chief Compliance Officer | February 2012       | E. Robert Lupone joined Textron in **February 2012**. Before joining Textron, he was Senior Vice President and General Counsel of Siemens Corporation (U.S.)  **[0000217346-24-000017_txt-20231230.htm:12]** **[0000217346-23-000006_txt-20221231.htm:12]** .                                      |
| David Rosenberg    | Vice President, Investor Relations (Current); Executive Vice President and Chief Financial Officer (Effective March 1, 2025) | March 1, 2025       | David Rosenberg is currently the Vice President of Investor Relations and will become the Executive Vice President and CFO on **March 1, 2025**. He has over **24 years of experience** in the aviation industry  **[TXT_3403594_2]** **[0001552781-24-000573_e24423-txt_8k.htm:1]** **[0001552781-24-000573_e24423_ex99-1.htm:0]** . |
| Scott Hegstrom     | Vice President, Strategy and Mergers & Acquisitions (Current); Vice President, Investor Relations (Effective March 1, 2025) | March 1, 2025       | Scott Hegstrom will become the Vice President of Investor Relations on **March 1, 2025**. He previously served as Vice President of Strategy and Mergers & Acquisitions  **[TXT_3403594_2]** **[0001552781-24-000573_e24423_ex99-1.htm:0]** .                           |

057009709e4e932aa1834abbc7ffe0fa475fd494542f0064e40ded2eb8f43bad

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **July 24, 2023**  **[0000217346-24-000092_txt-20240928.htm:36]**  |
| End Date/Duration        | **No expiration date**  **[0000217346-24-000092_txt-20240928.htm:36]**  |
| Total additional amount  | **35 million shares**  **[0000217346-24-000092_txt-20240928.htm:36]**  |
| Remaining authorization  | **18,381,000 shares**  **[0000217346-24-000092_txt-20240928.htm:36]**  |
| Details                  | Repurchase to offset dilution from stock-based compensation and for opportunistic capital management  **[0000217346-23-000033_txt-20230930.htm:27]** **[0000217346-24-000017_txt-20231230.htm:48]** **[0000217346-23-000033_txt-20230930.htm:34]**  |

1be47b4fe9d17043ff9b5f515f97705f22b2307b9147dd1290c817d490a760e8

**Annual guidance for FY 2025:**
- **Adjusted EPS**: $6.00 to $6.20  **[TXT_3412993_5]**  (raised from $5.40 to $5.60   )  
- **Manufacturing Cash Flow (before pension contributions)**: $800 million to $900 million  **[TXT_3412993_5]**  (raised from $650 million to $750 million   )  
- **Textron Aviation Revenues**: $6.1 billion  **[TXT_3412993_5]**  (raised from $5.5 billion   )  
- **Textron Aviation Segment Margin**: 12% to 13%  **[TXT_3412993_5]**  (raised from 11%   )  
- **Bell Revenues**: $4 billion  **[TXT_3412993_5]**  (no prior numeric guidance)  
- **Bell Segment Margin**: 8.5% to 9.5%  **[TXT_3412993_5]**  (lowered from 10.5% to 11%   )  
- **Textron Systems Revenues**: $1.3 billion  **[TXT_3412993_5]**  (no prior numeric guidance)  
- **Textron Systems Segment Margin**: 12% to 13%  **[TXT_3412993_5]**  (raised from slightly above 11% to 12%   )  
- **Industrial Revenues**: $3.2 billion  **[TXT_3412993_5]**  (lowered from $3.5 billion   )  
- **Industrial Segment Margin**: 4.5% to 5.5%  **[TXT_3412993_5]**  (raised from 4%   )  
- **eAviation Revenues**: $45 million  **[TXT_3412993_5]**  (raised from $35 million   )  
- **eAviation Segment Loss**: $70 million  **[TXT_3412993_5]**  (raised from a loss of $75 million   )  
- **Finance Segment Profit**: $25 million  **[TXT_3412993_5]**  (lowered from $30 million   )  
- **Corporate Expense**: $160 million  **[TXT_3412993_5]**  (raised from $135 million   )  
- **Net Interest Expense (Manufacturing Group)**: $130 million  **[TXT_3412993_5]**  (raised from $85 million   )  
- **Effective Tax Rate**: 18%  **[TXT_3412993_5]**  (raised from 17.5%   )  
- **Research & Development (R&D)**: $500 million  **[TXT_3412993_5]**  (no prior guidance)  
- **Capital Expenditures (CapEx)**: $425 million  **[TXT_3412993_5]**  (no prior guidance)  
- **Average Share Count**: 184 million shares  **[TXT_3412993_5]**  (no prior guidance)  
- **LIFO Inventory Provision**: $165 million  **[TXT_3412993_5]**  (no prior guidance)  
- **Intangible Asset Amortization**: $35 million  **[TXT_3412993_5]**  (no prior guidance)  
- **Nonservice Pension Income**: $265 million  **[TXT_3412993_5]**  (no prior guidance)  

1799a9735060c93203ac153539828fca9aa73717bf4307e5c9d4f8b20203f95c

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1957  **[0000217346-24-000017_txt-20231230.htm:100]**  | Present  | Current auditor   |

92b6f946be0cf327448b6405eb6fc9336b5749f12c34d076e3fcc54f9dca3bf2

c635c561be833a2f20457fb8810089d02ab9e4d9a2a4ff5bcfe74058cb4a74b9

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $3,613 million (-7% YoY)  **[0000217346-24-000017_txt-20231230.htm:57]** **[0000217346-25-000014_q4248-kex991.htm:4]**   
- Net Income: $141 million (-29% YoY)  **[0000217346-24-000017_txt-20231230.htm:57]** **[0000217346-25-000014_q4248-kex991.htm:4]**   
- EPS - Diluted: $0.76 (-24% YoY)  **[0000217346-24-000017_txt-20231230.htm:57]** **[0000217346-25-000014_q4248-kex991.htm:4]**   
- Interest Expense: -$21 million (vs. $19 million in prior year)  **[0000217346-24-000017_txt-20231230.htm:57]** **[0000217346-25-000014_q4248-kex991.htm:4]**   
- Net Change in Cash: $97 million (-79% YoY)  **[0000217346-24-000017_txt-20231230.htm:61]** **[0000217346-24-000017_txt-20231230.htm:60]** **[0000217346-25-000014_q4248-kex991.htm:6]** **[0000217346-25-000014_q4248-kex991.htm:7]**   
- Capital Expenditures (CapEx): **-153 million (-186% YoY)**  **[0000217346-24-000017_txt-20231230.htm:61]** **[0000217346-24-000017_txt-20231230.htm:60]** **[0000217346-25-000014_q4248-kex991.htm:6]** **[0000217346-25-000014_q4248-kex991.htm:7]**   

0db7fe245a25639eeb2d3646d14cc14b8a8adfc0e350ad302495cf09c9175b8c

| Year  | Amount Due (Millions) | Debt Type                  | Interest Rate (%) | % of Total Debt |
|-------|------------------------|----------------------------|-------------------|-----------------|
| 2024  | 357 **[0000217346-24-000092_txt-20240928.htm:3]**           | Current portion of long-term debt **[0000217346-24-000092_txt-20240928.htm:3]** | N/A               | 10.0% = (357 / 3,582) * 100 **[0000217346-24-000092_txt-20240928.htm:28]** **[0000217346-24-000092_txt-20240928.htm:3]** |
| N/A   | 2,884 **[0000217346-24-000092_txt-20240928.htm:3]**         | Long-term debt (Manufacturing group) **[0000217346-24-000092_txt-20240928.htm:3]** | N/A               | 80.5% = (2,884 / 3,582) * 100 **[0000217346-24-000092_txt-20240928.htm:28]** **[0000217346-24-000092_txt-20240928.htm:3]** |
| N/A   | 341 **[0000217346-24-000092_txt-20240928.htm:3]**           | Long-term debt (Finance group) **[0000217346-24-000092_txt-20240928.htm:3]**       | N/A               | 9.5% = (341 / 3,582) * 100 **[0000217346-24-000092_txt-20240928.htm:28]** **[0000217346-24-000092_txt-20240928.htm:3]** |

8a18644af110b3676866bffbf3d8e572c3c42322d20c78bbb4aa540e06b4445f

756e1cb432d9dc37ae78afb67cd927cde87f1008851d66a899ba61c5bd557c75

- **Textron's book-to-bill ratio in Q4 2023 was 0.9**, indicating a decline in orders and potential weakening demand; orders were significantly down from last year and the third quarter.  **[TXT_3370675_23]**
- **Deliveries in the fourth quarter were lighter than expected**, despite improvements in supply chain and labor productivity, suggesting ongoing production challenges that may impact 2024 performance.  **[TXT_3370675_22]**
- The benefit from **price net of inflation will be less significant in 2024 than in 2023**, potentially limiting margin expansion amid ongoing operational headwinds and efforts needed to achieve higher margins.  **[TXT_3370675_7]**

c9cafacc74c85e0d50d250061e04a04cfbd83c0c2aacae851d6520e9d48470af

- **Industrial Segment Underperformance:** The Industrial segment is experiencing softness, particularly in high-dollar discretionary items. Demand for recreational personal transportation has **softened more than expected**, potentially impacting revenue and necessitating cost adjustments.  **[TXT_3380710_7]**
- **Unanticipated Program Cancellations Leading to Increased Restructuring Costs:** The termination of the **Shadow** and **FARA** programs has resulted in additional restructuring and headcount reductions. This has expanded the 2023 restructuring plan's pretax special charges to **$165 million to $170 million**, up from the previously announced **$115 million to $135 million**.  **[TXT_3380710_3]**
- **Persistent Supply Chain Issues Affecting Production and Customer Satisfaction:** The company faces ongoing supply chain challenges, notably with **windshields**, which have been a problem for **several years**. These issues impact production builds and have caused **significant dissatisfaction** among customers.  **[TXT_3380710_5]**

78407d3c552bcbdf4de86f94af305a6d6d2280d43ac1ac245f6104544c78b60f

- **Ongoing softness in Industrial segment end markets**: The company expects **certain segments of the Industrial business to remain soft for a while**, necessitating further restructuring to maximize performance.  **[TXT_3403594_22]**
- **Challenges in the European automotive market**: Auto sales are down globally, with **Europe being the most challenged market**, leading to volumes being **below where we would like them to be** in the Kautex business.  **[TXT_3403594_9]**
- **Significant impact from the Aviation strike**: A **5-week strike** at Textron Aviation has resulted in **$0.5 billion of revenue adjustment**, causing inefficiencies and delays in ramping back up, contributing to a **lowered 2024 earnings guidance** from **$6.20-$6.40** to **$5.40-$5.60** per share.  **[TXT_3403594_12]** **[TXT_3403594_3]** **[TXT_3403594_18]**

8124771f379bec5c428cc116bb792c8d32bab42218965e3b8e784bd429443df6

1. **Aviation Margin Outlook**  
   **Q:** How are Aviation margins considering pricing and inflation?  
   **A:** Scott Donnelly expects **improved margins** in the Aviation segment for 2024, driven by positive pricing net of inflation, though not as significant as in 2023.  **[TXT_3370675_7]**  Improved manufacturing performance and reduced supply chain headwinds are also contributing factors. Moving towards the high side of the guidance, they aim for a **20-plus percent conversion**, which is historically where they like the business to be.  **[TXT_3370675_7]** 

2. **FLRAA Revenue and Bell Margins**  
   **Q:** What are expectations for FLRAA revenue and impact on Bell margins?  
   **A:** FLRAA program revenues are expected to be around **$900 million in 2024**, up from just under a few hundred million dollars in 2023.  **[TXT_3370675_6]**  Despite the ramp-up of the FLRAA program, Bell margins are expected to hold, aided by cost management and restructuring actions.  **[TXT_3370675_13]** **[TXT_3370675_14]**  While there will be overall margin rate pressure due to FLRAA's growth, the company anticipates absolute profit increases contributing positively to EPS.  **[TXT_3370675_13]** 

3. **Supply Chain Improvements**  
   **Q:** Is the supply chain improving and impacting deliveries?  
   **A:** Supply chain conditions are improving but still present challenges.  **[TXT_3370675_12]**  Scott Donnelly noted that enhancements in labor productivity and parts availability in Q4 are expected to positively impact aircraft deliveries in 2024.  **[TXT_3370675_12]**  He acknowledged that the supply chain remains susceptible to disruptions from key parts, but overall conditions have improved compared to 2023.  **[TXT_3370675_12]** 

4. **eAviation Losses and Outlook**  
   **Q:** What's the outlook for eAviation losses and revenues?  
   **A:** The eAviation segment includes Pipistrel, which is **doubling aircraft sales year-over-year**.  **[TXT_3370675_10]**  However, widening losses are driven by R&D investments in programs like NEXUS and Nova300, which won't generate revenue for several years.  **[TXT_3370675_10]**  First flight of the Nova is expected in 2024, and the NEXUS program is progressing with assembly underway.  **[TXT_3370675_10]** 

5. **Capital Deployment Priorities**  
   **Q:** What are the priorities for capital deployment in 2024?  
   **A:** The company's priority continues to be **share buybacks**, with an expected reduction in average share count to **191 million shares**, roughly a **5% reduction** in 2024.  **[TXT_3370675_8]** **[TXT_3370675_17]**  Scott Donnelly did not comment on M&A reports but reaffirmed the focus on returning value to shareholders through repurchases.  **[TXT_3370675_17]** **[TXT_3370675_19]** 

6. **Working Capital and Cash Flow**  
   **Q:** How is working capital affecting free cash flow guidance?  
   **A:** Despite volume growth putting pressure on inventory levels, the company expects **flat free cash flow** in 2024.  **[TXT_3370675_8]**  Headwinds from timing of customer payments and higher capital expenditures are anticipated, but overall, they foresee solid cash flow performance.  **[TXT_3370675_8]** 

7. **Business Jet Demand**  
   **Q:** What's the outlook for business jet demand and bookings?  
   **A:** Scott Donnelly feels positive about the end market, with **robust customer dialogues**.  **[TXT_3370675_11]**  While acknowledging that availability is a constraint, the company maintains a **book-to-bill assumption of 1:1** for 2024, consistent with 2023.  **[TXT_3370675_11]** 

8. **Restructuring and R&D Reduction**  
   **Q:** How is the restructuring affecting costs and R&D expenses?  
   **A:** The restructuring program, with expected **$75 million** in annual savings, is helping align costs with lower production rates at Bell.  **[TXT_3370675_14]**  Reduction in R&D expenses is mostly at Bell, shifting from internal R&D to contract work as programs like FLRAA ramp up.  **[TXT_3370675_14]** 

9. **Interest Expense Increase**  
   **Q:** Why is interest expense increasing?  
   **A:** Higher borrowing costs from a bond deal, slightly lower cash balances, and conservative assumptions on interest income are leading to increased interest expense.  **[TXT_3370675_7]** 

10. **Impact of V-22 Grounding**  
    **Q:** Does the V-22 grounding impact Bell's business?  
    **A:** The V-22 grounding is not expected to have a material impact on Bell.  **[TXT_3370675_7]**  Services are using the downtime for maintenance, and significant effects on the company's aftermarket business are not anticipated.  **[TXT_3370675_7]** 

11. **Systems Segment Outlook**  
    **Q:** What's the outlook for the Systems segment?  
    **A:** The Systems segment has a **strong pipeline** with significant opportunities and important down-selects achieved in 2023.  **[TXT_3370675_9]**  Revenue is expected to be relatively flat in 2024, with growth driven by final selection awards and EMD programs in 2025.  **[TXT_3370675_9]** 

12. **Supply Chain at Bell**  
    **Q:** How is the supply chain situation at Bell?  
    **A:** Previous supply chain challenges at Bell have been addressed, resolving critical issues and leading to higher deliveries in Q4.  **[TXT_3370675_28]**  While the supply chain remains a focus, conditions have improved.  **[TXT_3370675_28]** 

13. **Pre-Owned Aircraft Impact**  
    **Q:** Are pre-owned aircraft affecting new aircraft sales?  
    **A:** While pre-owned inventory levels have increased from unusually low levels, they remain historically low and consist mostly of older, out-of-production aircraft. Scott Donnelly does not see a significant impact on new aircraft sales.  **[TXT_3370675_29]** 

14. **Industrial Margins**  
    **Q:** What's driving improvements in Industrial margins?  
    **A:** Despite flat revenues, improved margins in the Industrial segment are expected due to performance in both Kautex and Textron Specialized Vehicles.  **[TXT_3370675_30]** 

15. **Kautex Outlook**  
    **Q:** What's the expectation for Kautex in 2024?  
    **A:** Kautex volumes are expected to be down somewhat, but **margins should continue to improve**.  **[TXT_3370675_24]** **[TXT_3370675_30]** 

16. **Bell Margin Strength**  
    **Q:** What's contributing to Bell's strong margins?  
    **A:** Higher commercial deliveries and cost management actions are helping to maintain Bell's margins despite the lower-margin FLRAA program ramp-up.  **[TXT_3370675_13]** **[TXT_3370675_24]** 

17. **Share Count and Repurchases**  
    **Q:** What's the expected share count and repurchase plan for 2024?  
    **A:** The expected average share count is **191 million shares**, reflecting a **5% reduction** through share repurchases.  **[TXT_3370675_8]** 

---

**Citations:**

 **[TXT_3370675_6]**  Sheila  Kahyaoglu (analyst) and Scott Donnelly (executive) discussing FLRAA revenue expectations.  
 **[TXT_3370675_7]**  Peter Arment (analyst), Scott Donnelly (executive), and Frank Connor (executive) on Aviation margins and interest expense.  
 **[TXT_3370675_8]**  Frank Connor (executive) on working capital, cash flow, and share count expectations.  
 **[TXT_3370675_9]**  Jason Gursky (analyst) and Scott Donnelly (executive) on Systems segment pipeline.  
 **[TXT_3370675_10]**  Jason Gursky (analyst) and Scott Donnelly (executive) on eAviation outlook.  
 **[TXT_3370675_11]**  Noah Poponak (analyst) and Scott Donnelly (executive) on business jet demand.  
 **[TXT_3370675_12]**  Noah Poponak (analyst) and Scott Donnelly (executive) on supply chain improvements.  
 **[TXT_3370675_13]**  Noah Poponak (analyst) and Scott Donnelly (executive) on Bell margins and FLRAA impact.  
 **[TXT_3370675_14]**  Myles Walton (analyst) and Scott Donnelly (executive) on restructuring and R&D reduction.  
 **[TXT_3370675_17]**  Robert Stallard (analyst) and Scott Donnelly (executive) on capital deployment priorities.  
 **[TXT_3370675_19]**  Seth Seifman (analyst) and Scott Donnelly (executive) on M&A considerations.  
 **[TXT_3370675_24]**  George Shapiro (analyst) and Scott Donnelly (executive) on Bell margins and Kautex outlook.  
 **[TXT_3370675_28]**  Douglas Harned (analyst) and Scott Donnelly (executive) on supply chain at Bell.  
 **[TXT_3370675_29]**  Douglas Harned (analyst) and Scott Donnelly (executive) on pre-owned aircraft impact.  
 **[TXT_3370675_30]**  Gavin Parsons (analyst) and Scott Donnelly (executive) on Industrial margins.

38f1440165deebaa223439c30370b96a47faf582bfecb1fc572ffa1db773c138

1. **Aviation Strike Impact**  
   **Q:** How has the strike affected Aviation production and recovery plans?  
   **A:** The **five-week strike** at Aviation led to a **$0.5 billion revenue drop** due to production halts and delays.  **[TXT_3403594_5]**  Management expects the workforce to be fully back and operations to ramp up, reaching normal productivity by January.  **[TXT_3403594_5]** **[TXT_3403594_13]**  The lost sales are **not lost but pushed into 2025**, with plans to deliver those aircraft and even exceed original 2024 guidance in 2025.  **[TXT_3403594_7]** **[TXT_3403594_13]** 

2. **2025 Revenue Outlook**  
   **Q:** Will 2025 revenues recover from 2024 disruptions?  
   **A:** Despite the 2024 interruptions, management expects **revenue growth in 2025 above the original 2024 guidance**.  **[TXT_3403594_13]** **[TXT_3403594_19]**  The company plans to expand capacity and deliver more products, with the production ramp still on track.  **[TXT_3403594_13]** **[TXT_3403594_19]** 

3. **Aviation Margins**  
   **Q:** What is the outlook for Aviation margins amid cost pressures?  
   **A:** The company continues to target a conversion rate of **20-plus percent** for Aviation.  **[TXT_3403594_14]**  The strike has led to lower volumes with fixed costs remaining, impacting margins in Q3 and the full year.  **[TXT_3403594_16]**  Management emphasizes driving productivity and efficiency to maintain margins.  **[TXT_3403594_11]** **[TXT_3403594_20]** 

4. **FLRAA Program Growth**  
   **Q:** How will the FLRAA program impact Systems growth?  
   **A:** The FLRAA program is expected to generate around **$900 million in revenue this year**, increasing by **$100 to $200 million next year**.  **[TXT_3403594_24]**  This growth, along with other key programs, is crucial for driving future growth in the Systems segment.  **[TXT_3403594_15]** 

5. **Demand Environment and Orders**  
   **Q:** What is the current demand environment for Aviation products?  
   **A:** The company saw over **$1 billion** in orders in Q3, indicating strong demand.  **[TXT_3403594_10]**  New product refreshes like the M2, CJ3, and CJ4, as well as the upcoming Ascend, are well-received, contributing to healthy market activity.  **[TXT_3403594_10]** 

6. **Pricing and Inflation**  
   **Q:** How is pricing net of inflation affecting margins?  
   **A:** Pricing remains strong, but the price versus inflation spread is **compressing**.  **[TXT_3403594_11]**  The company emphasizes the need to drive productivity and efficiency rather than relying on pricing to improve margins.  **[TXT_3403594_11]**  This quarter saw **net zero price** impact due to lower volumes from the strike.  **[TXT_3403594_11]** 

7. **Supply Chain Improvements**  
   **Q:** Are supply chain issues being resolved?  
   **A:** Management worked during the strike to improve supplier parts delivery, reducing part shortages that previously caused inefficiencies.  **[TXT_3403594_8]** **[TXT_3403594_20]**  They feel much better about the supply chain, expecting fewer disruptions moving forward.  **[TXT_3403594_8]** **[TXT_3403594_19]** 

8. **Labor Productivity**  
   **Q:** How is labor productivity recovering post-pandemic?  
   **A:** Labor productivity had been impacted by turnover and training of new hires.  **[TXT_3403594_20]**  The new labor contract is expected to improve retention and attraction, stabilizing the workforce and enhancing productivity.  **[TXT_3403594_20]** 

9. **Industrial Segment Challenges**  
   **Q:** What is the outlook for the Industrial segment amid market softness?  
   **A:** The Industrial segment has experienced softness all year, particularly in certain end markets.  **[TXT_3403594_7]** **[TXT_3403594_22]**  The company is cutting back on production volumes and continuing restructuring efforts to navigate the challenging environment.  **[TXT_3403594_7]** **[TXT_3403594_22]** 

10. **Bell 525 Certification**  
    **Q:** Is the Bell 525 certification on track?  
    **A:** The flight test program is progressing well, but certification may **slip into 2025** due to the extensive approvals required.  **[TXT_3403594_15]** 

fa42b1013c94bf7220e907a67902aa909a41f8379e49861392625330fd0123d5

1. **Aviation Margins**  
   **Q:** Can you sustain 13% margins in Aviation?  
   **A:** Scott Donnelly acknowledged that while the **13%** margin achieved is extremely strong, they may not maintain this level throughout the year. He expects margins to be solidly in the mid-**12%** range, noting headwinds like a lower price inflation spread and mix issues due to more Latitude deliveries, especially to fractionals which have lower margins. However, the business is performing well, with strong profitability, and remains within guidance.  **[TXT_3393417_16]** 

2. **Aviation Demand and Backlog**  
   **Q:** What are you seeing in Aviation market demand and pricing?  
   **A:** The end market continues to be robust, with strong demand across jets and turboprops, and across all models. They are targeting a **one-to-one** book-to-bill ratio, indicating sustained demand. Pricing remains strong, and the service business grew particularly well, with aftermarket revenue up **13%** in the quarter.  **[TXT_3393417_3]** 

3. **Industrial Margins Improvement**  
   **Q:** How will Industrial margins improve in the second half?  
   **A:** Margins in the Industrial segment are expected to continue growing through the year. About one-third of restructuring costs were incurred in Q2, with more to come in the second half as they align costs with volume. They are currently running about **100 basis points** below where they should be, and the cost actions are expected to address this gap.  **[TXT_3393417_12]** 

4. **Supply Chain Challenges**  
   **Q:** What is the status of the supply chain at Aviation and Bell?  
   **A:** Supply chain issues persist but are improving, with fewer problems than before. Challenges with late deliveries from suppliers are causing flow disruptions and inefficiencies in factories, affecting performance. At Bell, they're missing some key components but are working with suppliers. Despite these issues, the teams are managing through and continue to drive higher revenue and margins.  **[TXT_3393417_4]** 

5. **Share Repurchase Plans**  
   **Q:** What should we expect for share repurchases in the second half?  
   **A:** Textron continues to focus on share repurchases, having bought back **$358 million** worth of shares in Q2. They are generating strong cash flow and plan to continue allocating a significant portion to buybacks, maintaining the pace seen in the first half.  **[TXT_3393417_17]** 

6. **Business Jet Lead Times**  
   **Q:** Are long lead times causing lost sales in business jets?  
   **A:** Long lead times are an industry-wide phenomenon, and Textron is not at a competitive disadvantage. They continue to have a book-to-bill above **one**, delivering aircraft while taking orders into future years. Demand remains strong, and they're managing lead times effectively.  **[TXT_3393417_14]** 

7. **Bell Military Opportunities**  
   **Q:** How are military programs like V-22 and H-1 performing?  
   **A:** The military business outside of FLRAA is performing well. They added an order of **12 H-1 aircraft** from Nigeria and are ramping up production. V-22 production continues, with **five** aircraft added in FY24. There's ongoing work on upgrades and modernization efforts for both H-1 and V-22, which will help maintain a solid base as they move towards FLRAA production.  **[TXT_3393417_7]** 

8. **Aftermarket Growth**  
   **Q:** What's driving the **13%** aftermarket growth?  
   **A:** The aftermarket business is experiencing strong demand as aircraft are flying more. They also had a strong military quarter, building spares around the METS Program for the Navy contract. Overall, demand for services remains robust.  **[TXT_3393417_8]** 

9. **Order Activity in Aviation**  
   **Q:** Where is the Aviation order activity coming from?  
   **A:** Demand is strong across the entire customer base, in both jets and turboprops. There's no significant shift in the mix of orders between fleet customers and individual customers; the strength is widespread across all segments.  **[TXT_3393417_13]** 

10. **SkyCourier Market Potential**  
    **Q:** How large can the SkyCourier market become?  
    **A:** The SkyCourier has significant market potential, with strong demand across cargo, passenger, and combi versions. Acceptance is high domestically and internationally, and across various segments. The main issue is ramping up production to meet demand.  **[TXT_3393417_11]** 

862a474762b3081b90dcad7b3253ab32b3965b23d05d9d7e7d0479ab1cab6c91

- **Textron's Industrial segment is expected to come in below guidance due to lower volumes, particularly in the consumer space, with both specialized vehicles and Kautex experiencing year-over-year declines.** Management noted that they are not expecting a turnaround in end-market demand and are implementing cost-cutting measures to align with the lower volume environment.  **[TXT_3393417_18]** ,  **[TXT_3393417_27]** ,  **[TXT_3393417_12]**
- **Jet deliveries in the Aviation segment for the first half of the year were flat year-over-year, with the company admitting they are behind on some models like the Latitude due to issues that delayed deliveries.** This could impact their ability to achieve higher unit deliveries for the full year as previously expected.  **[TXT_3393417_5]**
- **The price inflation spread in the Aviation segment is anticipated to decrease as the year progresses, which may put pressure on margins despite efforts to drive efficiencies.** Additionally, ongoing supply chain challenges continue to present difficulties for the business.  **[TXT_3393417_6]**

b72fbf479e71f4e26bc92aaf195ee23f84b34335ceaa46d9b2bcfe831c3088bd

1. **Aviation Margins & Pricing**  
   **Q:** Can pricing gains continue driving Aviation margins?  
   **A:** Management expects pricing to remain **stable throughout the year**, with net pricing positive over inflation.  **[TXT_3380710_12]**  While Q1 saw higher conversion, margins are anticipated to improve over the course of the year as productivity benefits are realized.  **[TXT_3380710_14]**  They maintain a long-term margin target of around **20%**.  **[TXT_3380710_21]** 

2. **Bell Margins & FLRAA Impact**  
   **Q:** How will FLRAA affect Bell's margins?  
   **A:** The Bell team is performing well, focusing on cost management despite lower production levels.  **[TXT_3380710_15]**  The EMD phase of FLRAA is expected to be dilutive and will dominate the next several years, with initial production deliveries around **2028**.  **[TXT_3380710_18]**  Additional funding in the FY '25 budget request may increase revenues.  **[TXT_3380710_15]** 

3. **Industrial Segment Softness**  
   **Q:** Is weakness in Industrial impacting guidance?  
   **A:** High-dollar discretionary items have softened more than expected due to higher finance costs.  **[TXT_3380710_4]**  Revenues in Industrial are anticipated to be lower than the original guide, but margins are expected to hold.  **[TXT_3380710_13]**  Management believes upside in Aviation and Bell will offset this, maintaining overall company guidance.  **[TXT_3380710_13]** 

4. **Supply Chain Improvements**  
   **Q:** Are supply chain issues resolved?  
   **A:** Supply chain continues to improve across the company.  **[TXT_3380710_3]**  In Aviation, while there will be some pressure in Q2 due to inventory release timing, productivity and efficiency are starting to show benefits.  **[TXT_3380710_14]**  Random shortages, like windshields, remain a challenge but are improving.  **[TXT_3380710_24]** 

5. **Stock Buybacks**  
   **Q:** Will share repurchases exceed 5% this year?  
   **A:** With strong liquidity, management expects to be on the higher side of the **5%** target for share repurchases this year.  **[TXT_3380710_22]** 

6. **Aviation Orders & Demand**  
   **Q:** Are higher interest rates affecting Aviation orders?  
   **A:** Demand remains strong across all product lines in Aviation, with order activity staying positive.  **[TXT_3380710_7]**  Financing costs are not significantly impacting customers  **[TXT_3380710_7]** , and deliveries are planned for a couple of years out.

7. **eAviation Investments**  
   **Q:** When will eAviation investments pay off?  
   **A:** The timing is uncertain, but studies predict a **mega market** for eVTOL.  **[TXT_3380710_20]**  Investments are relatively modest, leveraging existing capabilities, and if the market materializes, it will result in a massive return on investment.  **[TXT_3380710_20]** 

8. **Bell 525 Certification**  
   **Q:** Is Bell 525 certification on track?  
   **A:** Flight testing is progressing well, expected to wrap up mid-year, with certification anticipated by year-end.  **[TXT_3380710_8]**  Deliveries are likely to begin in late **2025**, aligning with favorable market conditions in oil and gas.  **[TXT_3380710_11]** 

9. **Restructuring Savings**  
   **Q:** What's driving increased restructuring savings?  
   **A:** Savings are expected to reach around **$185 million** at full run rate, driven by additional headcount reductions due to the loss of FARA and actions in Industrial.  **[TXT_3380710_26]** 

10. **Defense Supplemental Impact**  
    **Q:** Is there impact from defense supplemental funding?  
    **A:** There is no direct impact, as Textron is not involved in areas covered by the supplemental, but there may be future opportunities related to Ukraine.  **[TXT_3380710_23]** 

548382be6eaecffa97f3f99953c4ece99fc01b4338862b996959912da8e77948

- Textron's Aviation segment is experiencing **strong demand**, with over **$1 billion in orders** during **Q3 2024**, a quarter that is usually lighter due to the summer, driven by significant updates to models like the M2, CJ3, CJ4, and the new Ascend.  **[TXT_3403594_10]**
- The company expects **robust profitability** in its Aviation business, maintaining a conversion rate of **20-plus percent** of revenue, given the mix of gross margin across the business.  **[TXT_3403594_14]**
- The **commercial market at Bell is strong**, with significant wins such as the contract with **Nigeria**, which will grow H1 original equipment volumes over the next **2-3 years**.  **[TXT_3403594_17]**

e6550df401272237da21d0014b480ef60d1f7c46f009ce4e5d3c4c19d5737864

- **Strong Aviation performance** with revenues and margins up, and backlog increased to **$7.5 billion**, up **$118 million** from the first quarter.  **[TXT_3393417_6]** ,  **[TXT_3393417_3]**
- **Robust demand across all product lines** in Aviation, with a **book-to-bill over one**, and orders spread across all customer bases.  **[TXT_3393417_3]** ,  **[TXT_3393417_13]**
- Benefiting from a **strong pricing environment**, as pricing continues to be strong in the marketplace, and **aftermarket revenues grew 13%**, indicating sustained growth in service revenues.  **[TXT_3393417_28]** ,  **[TXT_3393417_8]**

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- **Textron Aviation's book-to-bill ratio is above 1**, indicating strong demand across all product lines. **Order activity remains very positive despite higher interest rates**, demonstrating robust customer demand that will fuel future growth.  **[TXT_3380710_7]**
- **Bell segment is performing well and is expected to end towards the high side of guidance**, with **strong Q1 margins**. Additional orders, including **five extra V-22 aircraft and Nigerian H1 helicopter orders**, are contributing positively to future performance.  **[TXT_3380710_6]**
- **Bell 525 helicopter program secured its first order from Equinor for 10 helicopters**, targeting the energy sector, particularly the **oil and gas market**. With more potential customers in late-stage negotiations, there is an opportunity for **strong future growth** in this segment.  **[TXT_3380710_11]**

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Textron Inc (TXT)

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