Thu, Apr 24, 5:25 PM (23 days ago)
**Textron Inc. (TXT) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $3,306 million, up 5% from $3,135 million in Q1 2024. - **Net Income:** $207 million, slightly up from $201 million in Q1 2024. - **Earnings per Share (EPS):** Basic $1.14, Diluted $1.13, compared to Basic $1.04 and Diluted $1.03 in Q1 2024. - **Gross Margin:** 18.8% for Manufacturing revenues, down from 20.8% in Q1 2024. - **Operating Cash Flow:** Negative $124 million, compared to negative $7 million in Q1 2024. - **Capital Expenditures:** $56 million, down from $66 million in Q1 2024. - **Debt:** $3,394 million for the Manufacturing group, $340 million for the Finance group. - **Cash and Equivalents:** $1,194 million for the Manufacturing group, $51 million for the Finance group. **Segment Performance:** - **Textron Aviation:** Revenue up 2% to $1,212 million, segment profit down 11% to $127 million. - **Bell:** Revenue up 35% to $983 million, segment profit up 13% to $90 million. - **Textron Systems:** Revenue down 3% to $296 million, segment profit up 5% to $40 million. - **Industrial:** Revenue down 11% to $792 million, segment profit essentially unchanged at $30 million. - **Textron eAviation:** Revenue unchanged at $7 million, segment loss slightly improved to $17 million. - **Finance:** Revenue up slightly to $16 million, segment profit down to $10 million. **Trends and Uncertainties:** - **Tariffs:** No material adverse impact from U.S. tariffs to date, but ongoing evaluation. - **Backlog:** $17.2 billion, with 78% expected to be recognized by 2026. - **Share Repurchase:** $215 million spent on repurchasing 2.9 million shares. - **Debt Issuance:** $495 million in new debt issued with a 5.50% interest rate. - **Powersports Sale:** Completed sale of the Powersports business, including the Arctic Cat brand, with proceeds and gain to be reported in Q2 2025. **Future Operations Impact:** - **Capital Expenditures:** Expected to be $224 million for the full year. - **Cash Flow:** Positive cash flow from operations expected for the full year. - **Debt Management:** Adequate liquidity with existing cash balances and credit facilities. - **Market Risks:** No significant changes in exposure to market risks. **Conclusion:** Textron Inc. demonstrated modest revenue growth and stable net income in Q1 2025, with varied segment performance. The company faces uncertainties related to global tariffs and macroeconomic conditions but maintains a strong backlog and adequate liquidity. The sale of the Powersports business and ongoing share repurchases indicate strategic shifts and shareholder value focus.