Textron Reports First Quarter 2021 Results

Textron Inc. (NYSE: TXT) today reported first quarter 2021 net income of $0.75 per share. Adjusted net income, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, was $0.70 per share for the first quarter of 2021, compared to $0.35 per share in the first quarter of 2020.

“Revenues were higher in the quarter primarily driven by higher volumes at Industrial and Bell, with solid margin performance across all our segments,” said Textron Chairman and CEO Scott C. Donnelly. “We also saw improving commercial aircraft demand at both Aviation and Bell in the quarter.”

Cash Flow

Net cash provided by operating activities of continuing operations of the manufacturing group for the first quarter was $107 million, compared to a cash outflow of $393 million last year. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $71 million compared to a use of cash of $430 million last year.

In the quarter, Textron returned $91 million to shareholders through share repurchases.

Outlook

Textron now expects 2021 earnings per share from continuing operations to be in a range of $2.76 to $3.00, or $2.80 to $3.00 on an adjusted basis, up $0.10 from our previous outlook. Textron reiterated its expectation for cash flow from continuing operations of the manufacturing group before pension contributions of $600 to $700 million with planned pension contributions of about $50 million.

Donnelly continued, “With a strong start to the year, we expect to see continuing improvements in commercial demand across our end-markets.”

First Quarter Segment Results

Textron Aviation

Revenues at Textron Aviation of $865 million were down $7 million from the first quarter of 2020, due to lower volume, primarily reflecting lower aftermarket volume, partially offset by higher pricing.

Textron Aviation delivered 28 jets, up from 23 last year, and 14 commercial turboprops, down from 16 last year.

Segment profit was $47 million in the first quarter, up $44 million from a year ago, primarily due to a favorable impact from performance of $25 million and a favorable mix of products sold.

Textron Aviation backlog at the end of the first quarter was $2.1 billion.

Bell

Bell revenues were $846 million, up $23 million from last year, on higher commercial revenues of $66 million, partially offset by lower military revenues.

Bell delivered 17 commercial helicopters in the quarter, up from 15 last year.

Segment profit of $105 million was down $10 million, primarily due to an unfavorable impact from performance reflecting higher research and development costs in the quarter, largely related to the future vertical lift programs.

Bell backlog at the end of the first quarter was $5.2 billion.

Textron Systems

Revenues at Textron Systems were $328 million, flat with last year.

Segment profit of $51 million was up $25 million from a year ago, primarily due to a favorable impact from performance and other of $27 million.

Textron Systems’ backlog at the end of the first quarter was $2.4 billion.

Industrial

Industrial revenues were $825 million, an increase of $85 million from last year, primarily due to higher volume and mix of $47 million and a favorable impact of $20 million from pricing, primarily in the Specialized Vehicles product line, and $18 million from foreign exchange rate fluctuations.

Segment profit of $47 million was up $38 million from the first quarter of 2020, reflecting higher volume and mix of $16 million, favorable pricing, net of inflation of $11 million and favorable performance of $11 million, largely in the Specialized Vehicles product line.

Finance

Finance segment revenues were up $1 million, and profit was up $3 million from last year’s first quarter.

Conference Call Information

Textron will host its conference call today, April 29, 2021 at 8:00 a.m. (Eastern) to discuss its results and outlook. The call will be available via webcast at www.textron.com or by direct dial at (844) 721-7241 in the U.S. or (409) 207-6955 outside of the U.S.; Access Code: 4252363.

In addition, the call will be recorded and available for playback beginning at 11:00 a.m. (Eastern) on Thursday, April 29, 2021 by dialing (402) 970-0847; Access Code: 9928221.

A package containing key data that will be covered on today’s call can be found in the Investor Relations section of the company’s website at