Aircraft maker Textron tops profit estimates on strong aftermarket service, Bell demand

A Textron Flight Systems drone Aerosonde MK 4.7G is displayed at the 50th Paris Air Show at Le Bourget airport, north of Paris, Thursday June 20, 2013. And in background the Predator B drone. (AP Photo/Remy de la Mauviniere)

Aircraft maker Textron beat second-quarter profit and revenue estimates on Thursday, helped by strong demand for aftermarket parts and services and growth in its Bell unit.

“In the quarter, we saw revenue growth in both our commercial aircraft and helicopter businesses, as well as in Bell’s FLRAA program, now known as the MV-75,” said Textron Chairman and CEO Scott C. Donnelly.

Textron’s larger aviation segment, which manufactures Cessna and Beechcraft aircraft, delivered 49 jets in the quarter, up from 42 in the second quarter last year. However, its quarterly deliveries of commercial turboprop were down to 34 from 44 last year.

The segment’s revenue rose 2.9 per cent from last year to US$1.52 billion, aided by higher aftermarket parts and services revenues in the second quarter.

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The company’s Bell unit makes helicopters and tiltrotors, and has benefited from the Bell V-280 Valor program which the U.S. Army designates as the MV-75 future long-range assault aircraft.

The unit posted a nearly 30 per cent rise in quarterly revenue to US$1.02 billion.

Textron’s total revenue rose more than five per cent to US$3.72 billion in the second quarter, compared with estimates of US$3.64 billion, according to LSEG compiled data.

Its quarterly adjusted profit stood at US$1.55 per share, compared with the average of analysts’ estimates of US$1.44 per share.

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Textron reiterated its expectation for full-year 2025 adjusted earnings to be in the range of US$6.00 to US$6.20 per share.

The Providence, Rhode Island-based firm, however, sees a US$100 million hike in its annual adjusted manufacturing cash flow to be in the range of US$900 million to US$1.0 billion. This incorporates the expected impact associated with recently enacted U.S. tax legislation.

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Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo