Textron (TXT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 5% year-over-year to $3.3 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.

• Net income rose to $207 million from $201 million in Q1 2024.

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

• The Powersports business, including Arctic Cat, was sold following a strategic review.

Financial highlights

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

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

• Operating income was $241 million, up slightly from $237 million year-over-year.

• Net cash used by manufacturing operations was $114 million, versus $30 million in Q1 2024.

• Adjusted effective tax rate was 15.3% for Q1 2025; effective tax rate was 14.1%.

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.

• Planned pension contributions for 2025 are about $50 million.