Textron Aviation reports flat revenue growth in first quarter
Textron Aviation reported revenues of $1.2bn in the first quarter of 2025, up by a modest $25m compared to same period last year owing to lower deliveries.
The company delivered 31 jets during the quarter – five less than the same period last year. Textron’s operations have been marred by the strikes which significantly affected production and delivery timelines.
“At aviation, operations continued to improve as the factory progressed toward pre-strike performance levels while ramping production,” said Textron chairman and CEO Scott C. Donnelly in the earnings announcement.
Segment profit fell by $16m from last year to $127m in the first quarter of 2025 which the company attributed to the mix of aircraft sold, partially offset by higher aftermarket volume.
The segment’s backlog clocked in at $7.9bn.
Commenting on the short-to-medium production outlook for the aviation segment, Donnelly said that the company feels “very good” about the supply chain with improvements in labour productivity as attritions rates go down.
“I would say that the part situation at aviation [segment] is where we expect it to be. It’s in much, much better shape than it’s been in a long time. There are always, as you can imagine, supply chain issues that pop up, there always have been issues that pop up periodically,” he said during the earnings call.
“But I’d say at a macro level, the supply chain at aviation is in good shape and our workforce situation is in good shape. And that’s what I think will help to drive that improvement in both the volume and the productivity efficiencies and therefore, margins as we go through the balance of the year,” he added.
Furthermore, commenting on the demand environment in the US market especially with Trump’s tariff announcements, Donnelly said that: “In general, despite the fact that there’s a great deal of uncertainty and without a doubt, the tariff situation is helping create some uncertainty. But I think [like] most companies in the mid to long term, we feel pretty good about where things are.”
“And I mean, look, tax policy, obviously, is hugely important, that doesn’t get talked about here a lot, just because of all the other things that are going on. But I think most people view the mid to long term as a favorable environment. So I think that’s partly what’s driving that is reshoring and growth in the U.S. helping that.”
