Textron (TXT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $3.53 billion, up from $3.42 billion in Q2 2023, driven by growth in Aviation and Bell, partially offset by Industrial declines.

• Adjusted EPS rose to $1.54 from $1.46 year-over-year; GAAP EPS was $1.35, up from $1.30.

• Manufacturing cash flow before pension contributions increased to $320 million from $242 million.

• Net income for Q2 2024 was $259 million, compared to $263 million in Q2 2023.

• $358 million was returned to shareholders via share repurchases in Q2; $675 million year-to-date.

Financial highlights

• Q2 2024 revenues: $3.53 billion (+3% year-over-year); six-month revenues: $6.66 billion (+3%).

• Adjusted EPS for Q2 2024 was $1.54, up from $1.46 year-over-year.

• Net income from continuing operations was $260 million, compared to $263 million a year ago.

• Manufacturing cash flow before pension contributions was $320 million, up from $242 million in Q2 2023.

• Cash and equivalents at quarter-end were $1.35 billion.

Outlook and guidance

• 2024 full-year adjusted EPS guidance is $6.20–$6.40.

• 2024 manufacturing cash flow before pension contributions is expected to be $900–$1,000 million.

• Backlog at June 29, 2024 was $13.4 billion, with 82% expected to be recognized as revenue through 2025.

• Additional special charges of $12–$17 million expected in the second half of 2024, mainly for Industrial segment headcount reductions.

• Restructuring plan charges expected to be substantially completed by year-end 2024.