Yahoo Finance Textron Inc. (NYSE:TXT) Q1 2024 Earnings Call Transcript
Textron Inc. (NYSE:TXT) Q1 2024 Earnings Call Transcript April 25, 2024
Textron Inc. misses on earnings expectations. Reported EPS is $ EPS, expectations were $1.28. Textron Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Welcome to the Textron First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] This conference is being recorded for digitized replay and will be available after 10 a.m. Eastern Time today through April 25 of 2025. You may access the replay by dialing (866) 207-1041 and enter the access code 8546032. I would now like to turn the conference over to David Rosenberg, Vice President, Investor Relations. Please go ahead.
David Rosenberg: Thanks, Liah, and good morning, everyone. Before we begin, I'd like to mention we will be discussing future estimates and expectations during our call today. These forward-looking statements are subject to various risk factors, which are detailed in our SEC filings and also in today's press release. On the call today, we have Scott Donnelly, Textron's Chairman and CEO; and Frank Connor, our Chief Financial Officer. Our earnings call presentation can be found in the investor relations section of our website. Revenue in the quarter were $3.1 billion, up from $3 billion in last year's first quarter. Segment profit in the quarter was $290 million, up $31 million from the first quarter of 2023. During this year's first quarter, adjusted income from continuing operations was $1.20 per share, compared to $1.05 per share in last year's first quarter.
Manufacturing cash flow before pension contributions reflected a use of cash of $81 million in the quarter, compared to $104 million of cash provided in last year's first quarter. With that, I'll turn the call over to Scott.
Scott Donnelly: Thanks, David, and good morning, everyone. In the first quarter, we saw a higher segment profit at Aviation, Bell and Systems. At Aviation in the quarter, we delivered 36 jets, up from 35 last year, 20 commercial turboprops down from 34 last year's first quarter. Aviation continues to see strong demand across our product lines. The result in backlog growth of $177 million, and in the first quarter $7.3 billion. Textron aviation's fleet utilization remains strong in the quarter, contributing to aftermarket revenue growth of 6%, as compared to last year's first quarter. Throughout Q1, we saw continued improvements in our supply chain and hours attained in the factory, supporting delivery growth throughout the remainder of the year.
At Bell, revenues in the quarter were up, driven by higher military volume, reflecting the continued ramp of the FLRAA program. On the FLRAA program, we continue to progress through preliminary design reviews and expect to complete milestone B, which allows for the entrance into the engineering and manufacturing development phase of the program later this summer. Also during the quarter, Bell received an award for the production and delivery to Nigeria of 12 AH1Z helicopters. For V22, the recently enacted FY ‘24 budget includes five additional aircraft scheduled for delivery in 2027. On the commercial side of Bell, we delivered 18 helicopters down from 22 in last year's first quarter. During the quarter, we continued to progress toward FAA certification on the 525, expected later this year.
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