Textron (TXT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 5% year-over-year to $3.31 billion, led by strong growth at Bell and Textron Aviation, partially offset by declines in Industrial and Textron Systems.

• Adjusted EPS increased to $1.28 from $1.20 in Q1 2024; GAAP EPS was $1.13.

• Segment profit was $280 million, down $10 million year-over-year.

• Manufacturing cash flow before pension contributions was a use of $158 million, compared to $81 million in Q1 2024.

• $215 million was returned to shareholders via share repurchases.

Financial highlights

• Bell revenues increased 35% year-over-year to $983 million, with segment profit up 10 million to $90 million.

• Textron Aviation revenues were $1.2 billion, up $24 million, but segment profit fell $16 million to $127 million due to aircraft mix.

• Systems revenues declined $10 million to $296 million, but segment profit rose $2 million to $40 million on lower R&D costs.

• Industrial revenues dropped $100 million to $792 million, with segment profit flat due to restructuring cost savings.

• Adjusted EBITDA for Q1 2025 was $386 million, up from $372 million in Q1 2024.

Outlook and guidance

• Full-year adjusted EPS guidance reaffirmed at $6.00–$6.20; GAAP EPS expected between $5.19 and $5.39.

• Full-year manufacturing cash flow before pension contributions expected at $800–$900 million.

• Management expects positive operating cash flow for the full year.

• 78% of $17.2 billion backlog expected to convert to revenue by end of 2026.