Textron Reports Third Quarter 2024 Results
Textron (TXT) reported Q3 2024 earnings with EPS of $1.18 and adjusted EPS of $1.40, down from $1.49 in the prior year. The company's performance was significantly impacted by an IAM strike at Textron Aviation, which has since been resolved with a new five-year contract. Net cash from operating activities was $208 million, and the company returned $215 million to shareholders through share repurchases. Due to the strike's impact, Textron lowered its 2024 adjusted EPS guidance to $5.40-$5.60 from $6.20-$6.40, and reduced manufacturing cash flow guidance to $650-$750 million from $0.9-$1.0 billion.
Textron (TXT) ha riportato i profitti del terzo trimestre del 2024 con un utile per azione (EPS) di $1,18 e un EPS rettificato di $1,40, in calo rispetto a $1,49 dell'anno precedente. La performance dell'azienda è stata significativamente influenzata da uno sciopero dell'IAM presso Textron Aviation, risolto successivamente con un nuovo contratto quinquennale. Il flusso di cassa netto dalle attività operative è stato di $208 milioni, e la società ha restituito $215 milioni agli azionisti attraverso riacquisti di azioni. A causa dell'impatto dello sciopero, Textron ha abbassato le previsioni di EPS rettificato per il 2024 a $5,40-$5,60 da $6,20-$6,40, e ha ridotto le indicazioni sul flusso di cassa dalla produzione a $650-$750 milioni, rispetto a $0,9-$1,0 miliardi.
Textron (TXT) reportó ganancias del tercer trimestre de 2024 con un EPS de $1,18 y un EPS ajustado de $1,40, en comparación con $1,49 del año anterior. El desempeño de la compañía se vio significativamente afectado por una huelga de IAM en Textron Aviation, que desde entonces se ha resuelto con un nuevo contrato de cinco años. El flujo de efectivo neto de las actividades de operación fue de $208 millones, y la empresa devolvió $215 millones a los accionistas a través de recompras de acciones. Debido al impacto de la huelga, Textron redujo su guía de EPS ajustado para 2024 a $5,40-$5,60 desde $6,20-$6,40, y redujo la guía de flujo de efectivo de fabricación a $650-$750 millones desde $0,9-$1,0 mil millones.
Textron (TXT)은 2024년 3분기 실적을 발표하며 주당순이익(EPS)이 $1.18, 조정된 EPS가 $1.40이라고 밝혔다. 이는 전년도 $1.49에서 하락한 수치이다. 회사의 성과는 Textron Aviation에서 발생한 IAM 파업의 영향을 받았으며, 이는 이후 새로 체결된 5년 계약으로 해결되었다. 운영활동에서 발생한 순현금은 $208백만이며, 회사는 $215백만을 주식 매입을 통해 주주에게 반환했다. 파업의 영향으로 Textron은 2024년 조정된 EPS 가이드를 $5.40-$5.60으로 하향 조정했으며, 제조 현금흐름 가이드는 $650-$750백만으로, 이전의 $0.9-$1.0십억에서 줄어들었다.
Textron (TXT) a annoncé ses résultats du troisième trimestre 2024 avec un bénéfice par action (EPS) de 1,18 $ et un EPS ajusté de 1,40 $, en baisse par rapport à 1,49 $ l'année précédente. La performance de l'entreprise a été significativement affectée par une grève de l'IAM chez Textron Aviation, qui a depuis été résolue par un nouveau contrat de cinq ans. Le flux de trésorerie net des activités opérationnelles était de 208 millions de dollars, et l'entreprise a restitué 215 millions de dollars aux actionnaires via des rachats d'actions. En raison de l'impact de la grève, Textron a abaissé sa prévision d'EPS ajusté pour 2024 à 5,40 $-5,60 $ contre 6,20 $-6,40 $, et a réduit sa prévision de flux de trésorerie de fabrication à 650-750 millions de dollars contre 0,9-1,0 milliard de dollars.
Textron (TXT) hat die Ergebnisse für das dritte Quartal 2024 mit einem Gewinn pro Aktie (EPS) von $1,18 und einem angepassten EPS von $1,40 veröffentlicht, was einen Rückgang von $1,49 im Vorjahr darstellt. Die Leistung des Unternehmens wurde erheblich durch einen IAM-Streik bei Textron Aviation beeinflusst, der mittlerweile mit einem neuen fünfjährigen Vertrag gelöst wurde. Der Nettocashflow aus der operativen Tätigkeit betrug $208 Millionen, und das Unternehmen gab $215 Millionen durch Aktienrückkäufe an die Aktionäre zurück. Aufgrund der Auswirkungen des Streiks senkte Textron seine Prognose für das angepasste EPS 2024 auf $5,40-$5,60 von $6,20-$6,40 und reduzierte die Prognose für den Cashflow aus der Produktion auf $650-$750 Millionen von $0,9-$1,0 Milliarden.
- Bell segment revenues increased by $175 million with higher military and commercial volume
- Bell commercial helicopter deliveries increased to 44 units from 23 year-over-year
- Textron Aviation secured over $1.0 billion in new orders
- Bell backlog increased by $2.3 billion following FLRAA program milestone
- Jet deliveries increased to 41 from 39 year-over-year
- Adjusted EPS declined to $1.40 from $1.49 year-over-year
- Full-year guidance reduced significantly for both EPS and cash flow
- Textron Aviation segment profit decreased by $32 million
- Industrial segment profit dropped by $19 million
- Commercial turboprop deliveries decreased to 25 from 38 year-over-year
Insights
The Q3 2024 results reveal significant challenges, with
Notable segment performance includes Textron Aviation's
The IAM strike's resolution with a five-year contract marks a critical turning point, but operational recovery will face challenges in Q4. Production disruptions led to mixed delivery performance - jet deliveries increased to 41 units while commercial turboprops declined to 25 units. The
Bell's operational metrics show impressive improvement with 44 commercial helicopter deliveries, nearly double year-over-year. The FLRAA program's transition to EMD phase significantly strengthens the long-term production outlook, though near-term focus must remain on stabilizing core operations post-strike.
-
EPS of
; adjusted EPS of$1.18 , down from$1.40 in the prior year$1.49 -
Net cash from operating activities of
in the third quarter of 2024$208 million -
returned to shareholders through share repurchases in the third quarter$215 million - Textron Aviation segment revenue and profit impacted by IAM strike
"In the third quarter, Textron Aviation experienced a strike upon the expiration of its existing labor agreement with bargaining unit employees that was recently settled with the ratification of a new five-year contract," said Textron Chairman and CEO Scott C. Donnelly. "The labor disruption adversely impacted our third quarter results and we expect it to negatively affect fourth quarter financials."
"In the quarter, Bell achieved a key milestone on the FLRAA program with the
Cash Flow
Net cash provided by operating activities of the manufacturing group for the third quarter was
In the quarter, Textron returned
Outlook
On October 20th, the International Association of Machinists and Aerospace Workers (IAM) District 70, Local Lodge 774 representing the Wichita-based direct labor workforce, ratified a new five-year labor contract, after engaging in a four-week strike. While it has been resolved, we expect revenue and segment profit to be unfavorably impacted in the fourth quarter of 2024 related to the labor disruption and the recovery of production and delivery activities as our employees return to work.
Textron now expects 2024 adjusted earnings per share from continuing operations to be in a range of
Third Quarter Segment Results
Textron Aviation
Delayed aircraft deliveries along with unfavorable performance from manufacturing inefficiencies associated with the labor disruption resulting from the IAM strike lowered Textron Aviation's third quarter revenues by approximately
Textron Aviation’s revenues were
Textron Aviation delivered 41 jets in the quarter, up from 39 in the third quarter of 2023, and 25 commercial turboprops, down from 38 in last year's third quarter.
Segment profit was
Textron Aviation backlog at the end of the third quarter was
Bell
Bell revenues were
Bell delivered 44 commercial helicopters in the quarter, up from 23 in last year's third quarter.
Segment profit of
Bell backlog at the end of the third quarter was
Textron Systems
Revenues at Textron Systems were
Segment profit of
Textron Systems’ backlog at the end of the third quarter was
Industrial
Industrial revenues were
Segment profit of
Textron eAviation
Textron eAviation segment revenues were
Finance
Finance segment revenues were
Conference Call Information
Textron will host its conference call today, October 24, 2024 at 8:00 a.m. (Eastern) to discuss its results and outlook. The call will be available via webcast at www.textron.com or by direct dial at (844) 867-6169 in the
In addition, the call will be recorded and available for playback beginning at 11:00 a.m. (Eastern) on Thursday, October 24, 2024 by dialing (402) 970-0847; Access Code: 1480019.
A package containing key data that will be covered on today’s call can be found in the Investor Relations section of the company’s website at www.textron.com.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell, Cessna, Beechcraft, Hawker, Pipistrel, Jacobsen, Kautex, Lycoming, E-Z-GO, Arctic Cat, and Textron Systems. For more information visit: www.textron.com.
Forward-looking Information
Certain statements in this release and other oral and written statements made by us from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “guidance,” “project,” “target,” “potential,” “will,” “should,” “could,” “likely” or “may” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: Interruptions in the
TEXTRON INC. Revenues by Segment and Reconciliation of Segment Profit to Net Income (Dollars in millions, except per share amounts) (Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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September 28, 2024 |
September 30, 2023 |
|
September 28, 2024 |
September 30, 2023 |
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REVENUES |
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MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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 |
|
|
|
|
|
3,415 |
|
|
|
|
3,330 |
|
|
|
|
|
10,050 |
|
|
|
|
9,748 |
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|
FINANCE |
|
|
12 |
|
|
|
|
13 |
|
|
|
|
|
39 |
|
|
|
|
43 |
|
|
Total revenues |
|
$ |
3,427 |
|
|
|
$ |
3,343 |
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|
|
|
$ |
10,089 |
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|
|
$ |
9,791 |
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SEGMENT PROFIT |
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MANUFACTURING: |
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|
|
|
|
|
|
|
||||||||
Textron Aviation |
|
$ |
128 |
|
|
|
$ |
160 |
|
|
|
|
$ |
466 |
|
|
|
$ |
456 |
|
|
Bell |
|
|
98 |
|
|
|
|
77 |
|
|
|
|
|
260 |
|
|
|
|
202 |
|
|
Textron Systems |
|
|
39 |
|
|
|
|
41 |
|
|
|
|
|
112 |
|
|
|
|
112 |
|
|
Industrial |
|
|
32 |
|
|
|
|
51 |
|
|
|
|
|
103 |
|
|
|
|
171 |
|
|
Textron eAviation |
|
|
(18 |
) |
|
|
|
(19 |
) |
|
|
|
|
(54 |
) |
|
|
|
(40 |
) |
|
|
|
|
279 |
|
|
|
|
310 |
|
|
|
|
|
887 |
|
|
|
|
901 |
|
|
FINANCE |
|
|
5 |
|
|
|
|
22 |
|
|
|
|
|
30 |
|
|
|
|
42 |
|
|
Segment profit (a) |
|
|
284 |
|
|
|
|
332 |
|
|
|
|
|
917 |
|
|
|
|
943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Corporate expenses and other, net |
|
|
(20 |
) |
|
|
|
(38 |
) |
|
|
|
|
(99 |
) |
|
|
|
(98 |
) |
|
Interest expense, net for Manufacturing group |
|
|
(22 |
) |
|
|
|
(16 |
) |
|
|
|
|
(57 |
) |
|
|
|
(49 |
) |
|
LIFO inventory provision |
|
|
(49 |
) |
|
|
|
(26 |
) |
|
|
|
|
(96 |
) |
|
|
|
(86 |
) |
|
Intangible asset amortization |
|
|
(9 |
) |
|
|
|
(10 |
) |
|
|
|
|
(26 |
) |
|
|
|
(30 |
) |
|
Special charges (b) |
|
|
2 |
|
|
|
|
— |
|
|
|
|
|
(25 |
) |
|
|
|
— |
|
|
Non-service components of pension and postretirement income, net |
|
|
66 |
|
|
|
|
59 |
|
|
|
|
|
198 |
|
|
|
|
177 |
|
|
Income from continuing operations before income taxes |
|
|
252 |
|
|
|
|
301 |
|
|
|
|
|
812 |
|
|
|
|
857 |
|
|
Income tax expense |
|
|
(29 |
) |
|
|
|
(32 |
) |
|
|
|
|
(128 |
) |
|
|
|
(134 |
) |
|
Income from continuing operations |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
|
$ |
684 |
|
|
|
$ |
723 |
|
|
Discontinued operations, net of income taxes |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
— |
|
|
Net income |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
|
$ |
683 |
|
|
|
$ |
723 |
|
|
|
|
|
|
|
|
|
|
|
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Earnings Per Share: |
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|
|
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|
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|
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|
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Income from continuing operations |
|
$ |
1.18 |
|
|
|
$ |
1.35 |
|
|
|
|
$ |
3.56 |
|
|
|
$ |
3.56 |
|
|
|
|
|
|
|
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|
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Diluted average shares outstanding |
|
|
188,944,000 |
|
|
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|
199,992,000 |
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191,886,000 |
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|
203,170,000 |
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Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation: |
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|
September 28, 2024 |
September 30, 2023 |
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September 28, 2024 |
September 30, 2023 |
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Income from continuing operations - GAAP |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
|
$ |
684 |
|
|
|
$ |
723 |
|
|
Add: LIFO inventory provision, net of tax |
|
|
37 |
|
|
|
|
20 |
|
|
|
|
|
72 |
|
|
|
|
65 |
|
|
Intangible asset amortization, net of tax |
|
|
6 |
|
|
|
|
8 |
|
|
|
|
|
19 |
|
|
|
|
23 |
|
|
Special charges, net of tax |
|
|
(1 |
) |
|
|
|
— |
|
|
|
|
|
19 |
|
|
|
|
— |
|
|
Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
265 |
|
|
|
$ |
297 |
|
|
|
|
$ |
794 |
|
|
|
$ |
811 |
|
|
|
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|
|
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Diluted Earnings Per Share: |
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Income from continuing operations - GAAP |
|
$ |
1.18 |
|
|
|
$ |
1.35 |
|
|
|
|
$ |
3.56 |
|
|
|
$ |
3.56 |
|
|
Add: LIFO inventory provision, net of tax |
|
|
0.20 |
|
|
|
|
0.10 |
|
|
|
|
|
0.38 |
|
|
|
|
0.32 |
|
|
Intangible asset amortization, net of tax |
|
|
0.03 |
|
|
|
|
0.04 |
|
|
|
|
|
0.10 |
|
|
|
|
0.11 |
|
|
Special charges, net of tax |
|
|
(0.01 |
) |
|
|
|
— |
|
|
|
|
|
0.10 |
|
|
|
|
— |
|
|
Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
1.40 |
|
|
|
$ |
1.49 |
|
|
|
|
$ |
4.14 |
|
|
|
$ |
3.99 |
|
|
(a) |
|
Segment profit, adjusted income from continuing operations and adjusted diluted earnings per share are non-GAAP financial measures as defined in "Non-GAAP Financial Measures and Outlook" attached to this release. |
(b) |
|
Special charges for the three and nine months ended September 28, 2024 included a reversal of |
TEXTRON INC. Condensed Consolidated Balance Sheets (In millions) (Unaudited) |
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|
September 28, 2024 |
December 30, 2023 |
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Assets |
|
|
||||||||
Cash and equivalents |
$ |
1,289 |
$ |
2,121 |
||||||
Accounts receivable, net |
|
888 |
|
868 |
||||||
Inventories |
|
4,410 |
|
3,914 |
||||||
Other current assets |
|
750 |
|
857 |
||||||
Net property, plant and equipment |
|
2,484 |
|
2,477 |
||||||
Goodwill |
|
2,307 |
|
2,295 |
||||||
Other assets |
|
3,656 |
|
3,663 |
||||||
Finance group assets |
|
668 |
|
661 |
||||||
Total Assets |
$ |
16,452 |
$ |
16,856 |
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||||||||
|
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Liabilities and Shareholders' Equity |
|
|
||||||||
Current portion of long-term debt |
$ |
357 |
$ |
357 |
||||||
Accounts payable |
|
1,097 |
|
1,023 |
||||||
Other current liabilities |
|
2,905 |
|
2,998 |
||||||
Other liabilities |
|
1,855 |
|
1,904 |
||||||
Long-term debt |
|
2,884 |
|
3,169 |
||||||
Finance group liabilities |
|
403 |
|
418 |
||||||
Total Liabilities |
|
9,501 |
|
9,869 |
||||||
|
|
|
||||||||
Total Shareholders' Equity |
|
6,951 |
|
6,987 |
||||||
Total Liabilities and Shareholders' Equity |
$ |
16,452 |
$ |
16,856 |
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TEXTRON INC. MANUFACTURING GROUP Condensed Schedule of Cash Flows (In millions) (Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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|
September 28, 2024 |
September 30, 2023 |
|
September 28, 2024 |
September 30, 2023 |
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Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
|
$ |
219 |
|
|
|
$ |
252 |
|
|
|
|
$ |
660 |
|
|
|
$ |
690 |
|
|
Depreciation and amortization |
|
|
101 |
|
|
|
|
99 |
|
|
|
|
|
279 |
|
|
|
|
292 |
|
|
Deferred income taxes and income taxes receivable/payable |
|
|
10 |
|
|
|
|
(16 |
) |
|
|
|
|
(12 |
) |
|
|
|
(77 |
) |
|
Pension, net |
|
|
(57 |
) |
|
|
|
(50 |
) |
|
|
|
|
(169 |
) |
|
|
|
(152 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(31 |
) |
|
|
|
52 |
|
|
|
|
|
(21 |
) |
|
|
|
(45 |
) |
|
Inventories |
|
|
(4 |
) |
|
|
|
(106 |
) |
|
|
|
|
(471 |
) |
|
|
|
(659 |
) |
|
Accounts payable |
|
|
(30 |
) |
|
|
|
(5 |
) |
|
|
|
|
77 |
|
|
|
|
202 |
|
|
Other, net |
|
|
— |
|
|
|
|
44 |
|
|
|
|
|
218 |
|
|
|
|
486 |
|
|
Net cash from operating activities |
|
|
208 |
|
|
|
|
270 |
|
|
|
|
|
561 |
|
|
|
|
737 |
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
(71 |
) |
|
|
|
(79 |
) |
|
|
|
|
(211 |
) |
|
|
|
(224 |
) |
|
Net cash used in business acquisitions |
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
(13 |
) |
|
|
|
(1 |
) |
|
Net proceeds from corporate-owned life insurance policies |
|
|
1 |
|
|
|
|
1 |
|
|
|
|
|
27 |
|
|
|
|
39 |
|
|
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
4 |
|
|
|
|
|
3 |
|
|
|
|
4 |
|
|
Net cash from investing activities |
|
|
(70 |
) |
|
|
|
(75 |
) |
|
|
|
|
(194 |
) |
|
|
|
(182 |
) |
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Principal payments on long-term debt and nonrecourse debt |
|
|
(1 |
) |
|
|
|
(2 |
) |
|
|
|
|
(360 |
) |
|
|
|
(5 |
) |
|
Purchases of Textron common stock |
|
|
(215 |
) |
|
|
|
(235 |
) |
|
|
|
|
(890 |
) |
|
|
|
(885 |
) |
|
Dividends paid |
|
|
— |
|
|
|
|
(4 |
) |
|
|
|
|
(8 |
) |
|
|
|
(12 |
) |
|
Other financing activities, net |
|
|
11 |
|
|
|
|
35 |
|
|
|
|
|
59 |
|
|
|
|
61 |
|
|
Net cash from financing activities |
|
|
(205 |
) |
|
|
|
(206 |
) |
|
|
|
|
(1,199 |
) |
|
|
|
(841 |
) |
|
Total cash flows from continuing operations |
|
|
(67 |
) |
|
|
|
(11 |
) |
|
|
|
|
(832 |
) |
|
|
|
(286 |
) |
|
Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
Effect of exchange rate changes on cash and equivalents |
|
|
11 |
|
|
|
|
(13 |
) |
|
|
|
|
1 |
|
|
|
|
(5 |
) |
|
Net change in cash and equivalents |
|
|
(56 |
) |
|
|
|
(24 |
) |
|
|
|
|
(832 |
) |
|
|
|
(292 |
) |
|
Cash and equivalents at beginning of period |
|
|
1,345 |
|
|
|
|
1,695 |
|
|
|
|
|
2,121 |
|
|
|
|
1,963 |
|
|
Cash and equivalents at end of period |
|
$ |
1,289 |
|
|
|
$ |
1,671 |
|
|
|
|
$ |
1,289 |
|
|
|
$ |
1,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
September 28, 2024 |
September 30, 2023 |
|
September 28, 2024 |
September 30, 2023 |
||||||||||||||||
Net cash from operating activities - GAAP |
|
$ |
208 |
|
|
|
$ |
270 |
|
|
|
|
$ |
561 |
|
|
|
$ |
737 |
|
|
Less: Capital expenditures |
|
|
(71 |
) |
|
|
|
(79 |
) |
|
|
|
|
(211 |
) |
|
|
|
(224 |
) |
|
Add: Total pension contributions |
|
|
10 |
|
|
|
|
10 |
|
|
|
|
|
33 |
|
|
|
|
34 |
|
|
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
4 |
|
|
|
|
|
3 |
|
|
|
|
4 |
|
|
Manufacturing cash flow before pension contributions - Non-GAAP (a) |
|
$ |
147 |
|
|
|
$ |
205 |
|
|
|
|
$ |
386 |
|
|
|
$ |
551 |
|
|
(a) |
Manufacturing cash flow before pension contributions is a non-GAAP financial measure as defined in "Non-GAAP Financial Measures and Outlook" attached to this release. |
TEXTRON INC. Condensed Consolidated Schedule of Cash Flows (In millions) (Unaudited) |
|||||||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||||||||||||
|
September 28, 2024 |
September 30, 2023 |
|
September 28, 2024 |
September 30, 2023 |
||||||||||||||||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
|
$ |
684 |
|
|
|
$ |
723 |
|
|
Depreciation and amortization |
|
|
101 |
|
|
|
|
99 |
|
|
|
|
|
279 |
|
|
|
|
292 |
|
|
Deferred income taxes and income taxes receivable/payable |
|
|
11 |
|
|
|
|
(13 |
) |
|
|
|
|
(13 |
) |
|
|
|
(76 |
) |
|
Pension, net |
|
|
(57 |
) |
|
|
|
(50 |
) |
|
|
|
|
(169 |
) |
|
|
|
(152 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(31 |
) |
|
|
|
52 |
|
|
|
|
|
(21 |
) |
|
|
|
(45 |
) |
|
Inventories |
|
|
(4 |
) |
|
|
|
(106 |
) |
|
|
|
|
(471 |
) |
|
|
|
(659 |
) |
|
Accounts payable |
|
|
(30 |
) |
|
|
|
(5 |
) |
|
|
|
|
77 |
|
|
|
|
202 |
|
|
Captive finance receivables, net |
|
|
(3 |
) |
|
|
|
(17 |
) |
|
|
|
|
4 |
|
|
|
|
(32 |
) |
|
Other, net |
|
|
(2 |
) |
|
|
|
29 |
|
|
|
|
|
199 |
|
|
|
|
465 |
|
|
Net cash from operating activities |
|
|
208 |
|
|
|
|
258 |
|
|
|
|
|
569 |
|
|
|
|
718 |
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
(71 |
) |
|
|
|
(79 |
) |
|
|
|
|
(211 |
) |
|
|
|
(224 |
) |
|
Net cash used in business acquisitions |
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
(13 |
) |
|
|
|
(1 |
) |
|
Net proceeds from corporate-owned life insurance policies |
|
|
1 |
|
|
|
|
1 |
|
|
|
|
|
27 |
|
|
|
|
39 |
|
|
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
4 |
|
|
|
|
|
3 |
|
|
|
|
4 |
|
|
Finance receivables repaid |
|
|
(8 |
) |
|
|
|
7 |
|
|
|
|
|
23 |
|
|
|
|
26 |
|
|
Finance receivables originated |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(18 |
) |
|
|
|
— |
|
|
Other investing activities, net |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
2 |
|
|
Net cash from investing activities |
|
|
(78 |
) |
|
|
|
(68 |
) |
|
|
|
|
(189 |
) |
|
|
|
(154 |
) |
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Principal payments on long-term debt and nonrecourse debt |
|
|
(1 |
) |
|
|
|
(7 |
) |
|
|
|
|
(375 |
) |
|
|
|
(41 |
) |
|
Purchases of Textron common stock |
|
|
(215 |
) |
|
|
|
(235 |
) |
|
|
|
|
(890 |
) |
|
|
|
(885 |
) |
|
Dividends paid |
|
|
— |
|
|
|
|
(4 |
) |
|
|
|
|
(8 |
) |
|
|
|
(12 |
) |
|
Other financing activities, net |
|
|
11 |
|
|
|
|
35 |
|
|
|
|
|
59 |
|
|
|
|
61 |
|
|
Net cash from financing activities |
|
|
(205 |
) |
|
|
|
(211 |
) |
|
|
|
|
(1,214 |
) |
|
|
|
(877 |
) |
|
Total cash flows from continuing operations |
|
|
(75 |
) |
|
|
|
(21 |
) |
|
|
|
|
(834 |
) |
|
|
|
(313 |
) |
|
Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
Effect of exchange rate changes on cash and equivalents |
|
|
11 |
|
|
|
|
(13 |
) |
|
|
|
|
1 |
|
|
|
|
(5 |
) |
|
Net change in cash and equivalents |
|
|
(64 |
) |
|
|
|
(34 |
) |
|
|
|
|
(834 |
) |
|
|
|
(319 |
) |
|
Cash and equivalents at beginning of period |
|
|
1,411 |
|
|
|
|
1,750 |
|
|
|
|
|
2,181 |
|
|
|
|
2,035 |
|
|
Cash and equivalents at end of period |
|
$ |
1,347 |
|
|
|
$ |
1,716 |
|
|
|
|
$ |
1,347 |
|
|
|
$ |
1,716 |
|
|
TEXTRON INC.
Non-GAAP Financial Measures and Outlook
(Dollars in millions, except per share amounts)
We supplement the reporting of our financial information determined under
Segment Profit
Segment profit is an important measure used by our chief operating decision maker for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
Adjusted Income from Continuing Operations and Adjusted Diluted Earnings Per Share
Adjusted income from continuing operations and adjusted diluted earnings per share exclude LIFO inventory provision, net of tax; intangible asset amortization, net of tax; special charges, net of tax; and gains/losses on major business dispositions, net of tax. LIFO inventory provision is excluded to improve comparability with other companies in our industry who have not elected to use the LIFO inventory costing method. Intangible asset amortization is excluded to improve comparability as the impact of such amortization can vary substantially from company to company depending upon the nature and extent of acquisitions and exclusion of this expense is consistent with the presentation of non-GAAP measures provided by other companies within our industry. Management believes that it is important for investors to understand that these intangible assets were recorded as part of purchase accounting and contribute to revenue generation. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations.
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
|
September 28, 2024 |
September 30, 2023 |
|
September 28, 2024 |
September 30, 2023 |
|||||||||||||
Income from continuing operations - GAAP |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
$ |
684 |
|
|
$ |
723 |
|
Add: LIFO inventory provision, net of tax |
|
|
37 |
|
|
|
|
20 |
|
|
|
|
72 |
|
|
|
65 |
|
Intangible asset amortization, net of tax |
|
|
6 |
|
|
|
|
8 |
|
|
|
|
19 |
|
|
|
23 |
|
Special charges, net of tax |
|
|
(1 |
) |
|
|
|
— |
|
|
|
|
19 |
|
|
|
— |
|
Adjusted income from continuing operations - Non-GAAP |
|
$ |
265 |
|
|
|
$ |
297 |
|
|
|
$ |
794 |
|
|
$ |
811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income from continuing operations - GAAP |
|
$ |
1.18 |
|
|
|
$ |
1.35 |
|
|
|
$ |
3.56 |
|
|
$ |
3.56 |
|
Add: LIFO inventory provision, net of tax |
|
|
0.20 |
|
|
|
|
0.10 |
|
|
|
|
0.38 |
|
|
|
0.32 |
|
Intangible asset amortization, net of tax |
|
|
0.03 |
|
|
|
|
0.04 |
|
|
|
|
0.10 |
|
|
|
0.11 |
|
Special charges, net of tax |
|
|
(0.01 |
) |
|
|
|
— |
|
|
|
|
0.10 |
|
|
|
— |
|
Adjusted income from continuing operations - Non-GAAP |
|
$ |
1.40 |
|
|
|
$ |
1.49 |
|
|
|
$ |
4.14 |
|
|
$ |
3.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Outlook |
|||||||||||||
|
|
|
|
|
|
|
Diluted EPS |
|
||||||
Income from continuing operations - GAAP |
|
$ |
870 |
|
$ |
908 |
|
|
$ |
4.56 |
|
$ |
4.77 |
|
Add: LIFO inventory provision, net of tax |
|
|
100 |
|
|
|
|
0.53 |
|
|
||||
Intangible asset amortization, net of tax |
|
|
27 |
|
|
|
|
0.14 |
|
|
||||
Special charges, net of tax |
|
|
33 |
— |
|
30 |
|
|
|
0.17 |
— |
|
0.16 |
|
Adjusted income from continuing operations - Non-GAAP |
|
$ |
1,030 |
— |
$ |
1,065 |
|
|
$ |
5.40 |
— |
$ |
5.60 |
|
TEXTRON INC.
Non-GAAP Financial Measures and Outlook (Continued)
(Dollars in millions, except per share amounts)
Manufacturing Cash Flow Before Pension Contributions
Manufacturing cash flow before pension contributions adjusts net cash from operating activities (GAAP) for the following:
- Deducts capital expenditures and includes proceeds from insurance recoveries and the sale of property, plant and equipment to arrive at the net capital investment required to support ongoing manufacturing operations;
- Excludes dividends received from Textron Financial Corporation (TFC) and capital contributions to TFC provided under the Support Agreement and debt agreements as these cash flows are not representative of manufacturing operations;
- Adds back pension contributions as we consider our pension obligations to be debt-like liabilities. Additionally, these contributions can fluctuate significantly from period to period and we believe that they are not representative of cash used by our manufacturing operations during the period.
While we believe this measure provides a focus on cash generated from manufacturing operations, before pension contributions, and may be used as an additional relevant measure of liquidity, it does not necessarily provide the amount available for discretionary expenditures since we have certain non-discretionary obligations that are not deducted from the measure.
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
|
September 28, 2024 |
September 30, 2023 |
September 28, 2024 |
September 30, 2023 |
|||||||||||||||||
Net cash from operating activities - GAAP |
|
$ |
208 |
|
|
|
$ |
270 |
|
|
|
$ |
561 |
|
|
|
$ |
737 |
|
|
|
Less: Capital expenditures |
|
|
(71 |
) |
|
|
|
(79 |
) |
|
|
|
(211 |
) |
|
|
|
(224 |
) |
|
|
Add: Total pension contributions |
|
|
10 |
|
|
|
|
10 |
|
|
|
|
33 |
|
|
|
|
34 |
|
|
|
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
4 |
|
|
|
|
3 |
|
|
|
|
4 |
|
|
|
Manufacturing cash flow before pension contributions - Non-GAAP |
|
$ |
147 |
|
|
|
$ |
205 |
|
|
|
$ |
386 |
|
|
|
$ |
551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2024 Outlook |
||||||
Net cash from operating activities - GAAP |
|
$ |
997 |
— |
$ |
1,097 |
|
Less: Capital expenditures |
|
|
(400) |
|
|
||
Add: Total pension contributions |
|
|
50 |
|
|
||
Proceeds from sale of property, plant and equipment |
|
|
3 |
|
|
||
Manufacturing cash flow before pension contributions - Non-GAAP |
|
$ |
650 |
— |
$ |
750 |
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024902499/en/
Investor Contacts:
David Rosenberg – 401-457-2288
Kyle Williams – 401-457-2288
Media Contact:
Mike Maynard – 401-457-2362
Source: Textron
FAQ
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