Textron's revenues fell to $3.6bn in the fourth quarter of 2024, dropping from $3.9bn a year prior. Textron Aviation revenues fell from $1.5bn down to $1.3bn.
“While a work stoppage at Textron Aviation impacted our 2024 financial results, we saw strong order activity, aftermarket growth, and continued new product development activities,” said Textron chairman and CEO Scott C. Donnelly.
Net income fell from $198 million in 2023's fourth quarter down to $141 million, or an earnings per share of 76 cents.
“While Textron's fourth quarter 2024 results were impacted by the [approximate] four week strike at Textron Aviation, we think business jet fundamentals remain robust,” said Bank of America analyst Ronald Epstein.
For the full year, revenues were flat at $13.7bn. Textron Aviation revenues for the year was down from $5.4bn in 2023 to $5.3bn in 2024. Net income for the year was down from $921 million in 2023 to $824 million in 2024.
The company noted its aviation backlog totalled $7.8bn at the end of 2024, up $676 million from the end of 2023. Epstein called the backlog “impressive”, but that supply chain and labour challenges have limited growth.
“We think that TXT valuation is capped at where it has been trading for the past two years, at one standard deviation below the historical average, until we see a significant turnaround in the bizjet supply chain, a return to industrial growth, and more program wins at Textron Systems,” said Epstein.
Bank of America downgraded Textron to a neutral rating.
Textron returned $232 million to shareholders through share repurchases, totalling $1.1bn for the entire year.
As of the end of the year, the company's assets totalled $16.8bn, with liabilities and shareholders' equity also amounting to $16.8bn. The company held $1.4bn in cash and equivalents at the end of the period.