Textron Aviation Q3 revenue jumps 15% to $1.33bn
Third-quarter filings from Textron showed revenues from its aviation segment jumped by 15% year-over-year to $1.33bn compared with $1.16bn during the same period last year.
The increase in segment’s revenue came on the back of from higher volumes and favourable pricing.
“At Aviation, we saw our strongest order quarter of the year with a 12% increase over the third quarter of 2022,” said Scott C Donnelly, chairman and CEO, Textron.
The aviation segment’s profit clocked in at $160m in Q3, up $29m from a year ago, largely due to favourable pricing.
Meanwhile, a $23m favourable impact from higher volume and mix was partially offset by supply chain and labour inefficiencies.
The company’s aviation segment delivered 39 jets and 38 commercial turboprops. Textron Aviation’s backlog at the end of the Q3 was $7.4bn.
“The much-watched aviation backlog expanded by $600m sequentially and we calculate a book to bill of about1.4x,” said Robert Stallard, global aerospace & defence partner at Vertical Research Partners. “The book to bill at aviation has actually improved versus deteriorating, which bodes well for bizjet demand.”
Overall, Textron group’s revenue reported earnings per share (EPS) of $1.35 for Q3, up 27% year-over-year from the same period last year. The company’s revenue grew by 8.6% year-over-year to $3.4bn compared with $3.1bn during the Q3 2022.
“In the quarter, we saw higher overall revenues and net operating profit driven by growth at aviation, industrial and systems,” said Donnelly.
Meanwhile, Bell revenues remained flat at $754m compared to $754m in the same period last year on account of lower commercial helicopter volume, largely reflecting supply chain constraints.