Textron Inc. has recently released its 10-Q report, providing a detailed insight into its operations and financial performance. Textron operates in the aircraft, defense, industrial, and finance industries globally, with six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft, while the Bell segment supplies military and commercial helicopters and tiltrotor aircraft. The Textron Systems segment offers unmanned aircraft systems, electronic systems, and advanced marine crafts, among others. The Industrial segment provides blow-molded solutions and various vehicles and equipment. The Textron eAviation segment manufactures light aircraft and gliders, and the Finance segment offers financing services for aircraft and helicopters.
In its 10-Q report, Textron discussed the impact of recent changes to the United States trade policy, including new or higher tariffs on imported goods and retaliatory tariffs from other countries. The company stated that 71% of its 2024 revenues were generated in the U.S., and its aircraft products and components manufactured in Canada and Mexico are largely exempt from newly imposed tariffs. Textron also mentioned that to date, it has not experienced a material adverse impact from these tariffs, but it will continue to evaluate their potential impact on its business and financial position.
The consolidated results of operations for the three months ended March 29, 2025, showed that Textron's revenues increased by $171 million, or 5%, compared to the same period in 2024. This increase was primarily driven by higher Bell revenues of $256 million, higher Textron Aviation revenues of $24 million, and lower Industrial revenues of $100 million. The cost of sales increased by $202 million, 8%, primarily due to higher net volume and mix, and inflation. Research and development costs decreased by $12 million, 8%, while selling and administrative expense decreased by $18 million, 6%. The interest expense, net, increased by $9 million, 45%, and the effective tax rate for the first quarter of 2025 was 14.1%.
Textron reported a backlog of $17,242 million as of March 29, 2025, with the Textron Aviation segment contributing $7,868 million, the Bell segment contributing $7,052 million, and the Textron Systems segment contributing $2,322 million to the total backlog.
The company's segment analysis provided detailed insights into the performance of each operating segment. For instance, Textron Aviation's segment profit decreased by $16 million, 11%, in the first quarter of 2025, compared with the same period in 2024. Bell's segment profit increased by $10 million, 13%, while Textron Systems' segment profit increased by $2 million, 5%. The Industrial segment's profit remained essentially unchanged, and the Textron eAviation segment reported a segment loss of $17 million, a decrease of $1 million from the previous year. In the Finance segment, revenues increased by $1 million, but segment profit decreased by $8 million.
Following these announcements, the company's shares moved 2.3%, and are now trading at a price of $67.75. If you want to know more, read the company's complete 10-Q report here.
