Textron (TXT) Gabelli Funds 30th Annual Aerospace & Defense Symposium summary

Business overview and segment highlights

• Operates in Aviation, Bell Helicopter, Systems, Industrial, and eAviation segments, with a small finance business supporting products.

• Aviation includes Cessna and Beechcraft brands, Bell focuses on helicopters and tiltrotor aircraft, Systems covers unmanned and robotic vehicles, and Industrial includes battery-electric and internal combustion vehicles.

• Kautex is transitioning from fuel systems to EV battery enclosures, and eAviation focuses on alternative propulsion and automation.

• Acquired Pipistrel, a leader in certified electric aircraft, to advance electric aviation technologies.

Aviation segment performance and outlook

• Aviation backlog reached $7.5 billion, providing about two years of sales visibility.

• Demand remains strong across business jets and turboprops, with consistent customer engagement and order activity.

• Production is constrained by supply chain and labor shortages, though improvements are underway.

• Undersupplying the market, with book-to-bill ratios supporting continued growth and flexibility to adjust production if demand shifts.

• Demand is robust across all product lines, with business jets strong in the Americas and turboprops more internationally distributed.

Bell Helicopter and military programs

• FLRAA (V-280) program entered EMD phase, with first flight targeted for 2026.

• V-22 program extended through 2027 with new orders; ongoing upgrades and reliability improvements expected.

• H-1 production line restarted for foreign military sales, with deliveries planned for 2027-2028.

• Bell margins face pressure as cost-plus FLRAA engineering replaces higher-margin manufacturing, but revenue growth and cost management aim to offset this.