On this page of StockholderLetter.com we present the latest annual shareholder letter from TEXTRON INC — ticker symbol TXT. Reading current and past TXT letters to shareholders can bring important insights into the investment thesis.

 •  3/4/2025 Letter Continued (Full PDF)
 •  3/6/2023 TXT Stockholder Letter
 •  3/7/2024 TXT Stockholder Letter
 •  More "Aerospace & Defense" Category Stockholder Letters
 •  TXT Benford's Law Stock Score = 95

TXT Shareholder/Stockholder Letter Transcript:

202 4 ANNUAL REPORT

GLOBA L
NE TWORK O F
BUSINE SSES
Textron is known around the world for its powerful brands
of aircraft, defense and industrial products that provide
customers with groundbreaking technologies, innovative
solutions and    rst-class service.
TEXTRON AVIATION
Textron Aviation is home to the Beechcraft   and
nd Cessna   aircraft brands and is a leader in general aviation through two principal
nd services. Aircraft includes sales of business jets, turboprop aircraft, military trainer
product lines: aircraft and aftermarket parts and
t. Aftermarket parts and services includes commercial parts sales and maintenance,
and defense aircraft and piston engine aircraft.
inspection and repair services, and advanced    ight training devices.
BELL
Bell is a leading supplier of military and commercial helicopters, tiltrotor aircraft and related spare parts and services. Bell supplies
advanced military helicopters and tiltrotors to the U.S. Government and non-U.S. military customers and commercially certi   ed
helicopters to corporate, private, law enforcement, utility, public safety, emergency medical helicopter operators, and U.S. and foreign
governments. Bell provides support and service for an installed base of approximately 13,000 helicopters.
INDUSTRIAL
Our industrial segment designs and manufactures a variety of products within the Kautex and Textron Specialized Vehicles businesses.
Kautex is a leader in designing and manufacturing plastic fuel systems for automobiles and light trucks, along with other automotive
systems and components. Textron Specialized Vehicles products include golf cars, off-road utility vehicles, powersports products, light
transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment and specialized turf-care vehicles.
TEXTRON SYSTEMS
Textron Systems    businesses develop, manufacture and integrate products and services for U.S. and international military,
government and commercial customers to support defense, homeland security, aerospace, infrastructure protection and other
customer missions. Product and service offerings include electronic systems and solutions, advanced marine craft, piston aircraft
engines, live military air-to-air and air-to-ship training, weapons and related components, unmanned aircraft systems and both
manned and unmanned armored and specialty vehicles.
TEXTRON eAVIATION
Textron eAviation is focused on research and development initiatives related to sustainable aviation solutions and includes Pipistrel, a
manufacturer of light aircraft. Pipistrel offers a family of light aircraft and gliders with both electric and combustion engines. Pipistrel   s
Velis Electro is the world   s    rst, and currently only, electric aircraft to receive full type certi   cation from the European Union Aviation
Safety Agency and from the UK Civil Aviation Authority. In 2024, the FAA granted a light-sport aircraft airworthiness exemption for the
Pipistrel Velis Electro, allowing    ight training in an electric aircraft within the United States.
FINANCE
Our Finance segment, operated by Textron Financial Corporation (TFC), is a commercial    nance business that provides    nancing
solutions primarily to purchasers of new and pre-owned aircraft and Bell helicopters. For more than 60 years, TFC has played a key
role for Textron customers around the globe.

SELECTED
YE A R - OVE R -YE A R
FINA N C I A L DATA
2024
2023
$13,702
$13,683
1,200
1,327
825
922
1,042
1,127
$ 77.21
$ 80.42
4.34
4.57
5.48
5.59
Diluted Average
190,307
201,774
Year-End
182,964
192,898
$16,838
$16,856
(Dollars in Millions, Except Per Share Amounts)
Total Revenues
1
Total Segment Pro   t
Income from Continuing Operations   GAAP
1
Adjusted Income from Continuing Operations   Non-GAAP
PER SHARE OF COMMON STOCK
Common Stock Price at Year-End
Diluted Income from Continuing Operations   GAAP
1
Adjusted Diluted Income from Continuing Operations   Non-GAAP
COMMON SHARES OUTSTANDING (In Thousands)
FINANCIAL POSITION
Total Assets
3,247
3,526
Finance Group Debt
341
348
Shareholders    Equity
Manufacturing Group Debt
7,204
6,987
Manufacturing Group Debt-to-Capital (Net of Cash)
21%
17%
Manufacturing Group Debt-to-Capital
31%
34%
$ 1,008
$ 1,270
692
931
KEY PERFORMANCE METRICS
Net Cash from Operating Activities of Continuing Operations for the Manufacturing Group   GAAP
Manufacturing Cash Flow Before Pension Contributions   Non-GAAP
1
1. Segment Pro   t, Adjusted Income from Continuing Operations, Adjusted Diluted Earnings Per Share and Manufacturing Cash Flow Before Pension Contributions are Non-GAAP Financial Measures. See page 7 for
a Reconciliation to GAAP.
2024 TOTAL REVENUES
BY SEGMENT
Textron Aviation 38.6%
Bell 26.1%
Industrial 25.6%
Textron Systems 9.1%
Finance 0.4%
Textron eAviation 0.2%
2024 TOTAL REVENUES
BY CUSTOMER
Commercial 75%
U.S. Government 25%
2024 TOTAL REVENUES
BY REGION
U.S. 71%
Europe 9%
Other International 20%
Textron 2024 Annual Report
1

F E LLOW S HAREHOLDERS ,
2024 WAS A YEAR OF ACHIEVEMENTS AND CHALLENGES
FOR OUR COMPANY. We saw strong demand for our commerciall
products at Textron Aviation and Bell and made progress
on several important military programs, including achieving
Milestone B approval on the Future Long Range Assault Aircraft
(FLRAA) program. As a result of robust demand in our aerospace
and defense businesses, we ended the year with a total company
backlog of $17.9 billion, up $4 billion from 2023.
SCOTT C. DONNELLY
Chairman and
Chief Executive Of   ce
We faced a strike at Textron Aviation and difficult end markets in our Industrial segment. While the strike was unfortunate
and adversely impacted the business   s ability to meet its production and delivery schedules during the latter part of the year,
we were able to continue to work with suppliers, resulting in improved parts    ow that should improve plant efficiency in the
future. We have reached agreement with our employee union on a new    ve-year contract. To address the challenges in our
Industrial segment, we focused on our cost structure and began a strategic review of the powersports product line.
DEVELOPING AND REFRESHING COMMERCIAL PRODUCTS
Throughout the year, Textron Aviation continued to see strong demand across all product lines. Backlog grew throughout the
year, ending at $7.8 billion, an increase of $676 million from 2023.
Building upon a strategy of continually refreshing its product lineup, Textron Aviation announced planned Gen3 platform
upgrades to its Citation M2, CJ3 and CJ4 models. All three Gen3 aircraft will include the revolutionary Garmin Emergency
Autoland technology, bringing peace of mind to pilots and passengers in this single pilot operator segment.
F IR ST QUA RTE R
First signed
Foreign
Military Sales award
F
purchase
for
f production and delivery
agreement
of
o 12 AH-1Z helicopters for the
for Bell 525
government
of Nigeria
g
Pipistrel Velis
Electro receives
light-sport aircraft
airworthiness exemption
from FAA
2
Textron 2024 Annual Report

The Citation Ascend, a state-of-the-art business jet announced in 2023, added a second
   ight test article to the program as certi   cation momentum builds for the aircraft.
The    ight test program logged more than 700 hours as the aircraft prepares for entry
into service anticipated in 2025. The Beechcraft Denali has logged more than 2,500
hours of    ight testing and began its certi   cation    ight test phase following the Federal
Aviation Administration   s Type Inspection Authorization.
The SkyCourier has
become an ideal aircraft
for customers around
the world who serve a
variety of missions.
Demonstrating its versatility, the    rst Cessna SkyCourier equipped with a Combi
interior conversion option   the ability to transport passengers and cargo at the same
time   was certi   ed by the FAA and delivered to a customer in Alaska. Along with
the passenger and freighter variants, the SkyCourier has become an ideal aircraft for
customers around the world who serve a variety of missions. The SkyCourier also received type certi   cations from regulatory
agencies in Australia, Canada and the Philippines, expanding the aircraft   s market.
Bell saw steady order growth for its commercial aircraft across market segments. New commercial orders included the
   rst order for the Bell 525 to Equinor, Norway   s state energy company, which signed an agreement to purchase 10 Bell
525 aircraft. The Bell 525 incorporates    y-by-wire    ight controls and provides enhanced safety capabilities, reliability and
optimized operation.
Bell also announced the signed purchase agreement for the sale of 15 Bell 407GXis with IFR con   guration kits to Global
Medical Response, bringing its total    eet to 250 Bell helicopters.
At Textron eAviation, we continued our investments in electric and hybrid aviation platforms. We made advancements in
both our Nuuva hybrid-electric vertical takeoff and landing (VTOL) and Nexus electric vertical takeoff and landing
(eVTOL) programs with the Nuuva   s    rst hover    ight completed in January 2025. With the acquisition of Amazilia Aerospace,
a respected developer of digital    ight control,    ight guidance and vehicle management systems for civil manned and
unmanned aircraft, Textron eAviation enhanced its internal capabilities in these critical technologies.
SECOND QUARTER
First deliveries of MultitiEngine Training Systems
ems
(METS) Beechcraft King
ng Air
260 aircraft to the U.S. Navy
Second
Citation
Ascend    ight test
article joins the program
Modernized Royal
Canadian Air Force
CH-146 Griffon helicopter
Textron eAviation completes
acquisition of Amazilia Aerospace
makes    rst    ight at
Bell   s Commercial Centre
of Excellence in Mirabel
Textron 2024 Annual Report
3



 3/4/2025 Letter Continued (Full PDF)