Textron (TXT) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues were $3.6 billion, down from $3.9 billion in Q4 2023; full-year revenues were $13.7 billion, nearly flat year-over-year.

• Q4 segment profit was $283 million, down from $384 million in Q4 2023; full-year segment profit was $1.2 billion, down from $1.327 billion.

• Adjusted EPS for Q4 was $1.34 (vs. $1.60 prior year); full-year adjusted EPS was $5.48 (vs. $5.59 prior year).

• 2024 results were impacted by an Aviation work stoppage and softness in Industrial markets.

• Year-end backlog reached $17.9 billion, up $4 billion from 2023, with strong order activity in aerospace and defense.

Financial highlights

• Manufacturing cash flow before pension contributions was $306 million in Q4, down year-over-year; full-year was $692 million, down from $931 million.

• Q4 special charges included $53 million in pre-tax restructuring and $38 million in inventory valuation related to Powersports.

• Adjusted EBITDA for 2024 was $1.855 billion, up from $1.653 billion in 2023.

• Net debt increased to $2.147 billion at year-end 2024 from $1.693 billion at year-end 2023.

• Returned $1.1 billion to shareholders via share repurchases in 2024.

Outlook and guidance

• 2025 revenue projected at $14.7 billion, up from $13.7 billion in 2024.

• Adjusted EPS expected in the range of $6.00–$6.20; GAAP EPS outlook is $5.19–$5.39.

• Manufacturing cash flow before pension contributions expected at $800–$900 million.

• R&D spending expected at $500 million; CapEx at $425 million.

• 2025 income tax rate expected to rise to 18%; pension contributions projected at $50 million.