Textron Aviation 2Q revenues inch up on higher deliveries

Textron announced financial results for the second quarter of 2025 wherein it reported revenue from its Aviation segment at $1.5bn, up 2.8% year-over-year compared to same period last year owing to higher aircraft deliveries.

The company delivered 49 jets in the quarter compared to 42 in the second quarter of last year. This included six Longitudes, 12 Latitudes, eight King Airs and four SkyCourier.

“At Textron Aviation, operations continued to improve as production ramped,” said Textron chairman and CEO Scott C. Donnelly.

Jefferies in its results review said that the revenues were offset by “by 34 turboprops (vs 44 a year ago) and +$7MM higher services revenues.”

While revenues were up slightly, the company said that its aviation segment profit declined by 7.6% year-over-year to $180m compared to $195m in the same period last year.

“Aviation margins of 11.9% (-130 bps y-o-y) vs estimate/consensus 11.3%/11.5% w/ the $15MM y-o-y decline reflecting mix & higher warranty costs, partially offset by favourable impact of manufacturing efficiencies & higher net pricing,” said Jefferies in its note.

The segment’s backlog stood at $7.85bn at the end of the quarter, an increase of 5% year-over-year, translating into book-to-bill ratio of 0.99x.

On a cumulative basis, during the first half of 2025, Textron’s aviation segment revenues jumped 2.4% year-over-year to $2.7bn. However, similar to the quarterly trend, the company’s aviation segment profit declined 9%YoY to $307m.

The company has so far delivered 80 jets in the first half of 2024.  Jefferies estimates Textron will deliver 190 jets during 2025 which means the company will need to deliver 110 more in the next quarters. To note, Textron did not publish guidance on deliveries for 2025.