Textron posts ‘solid’ full-year performance, despite mixed Q4
Textron Aviation has posted lower-than-expected year-over-year (YoY) deliveries and revenue during fourth quarter (Q4) 2021. Although full-year results came in substantially closer to the demand in keeping with the rest of business aviation in 2021.
Scott Donnelly, chairman and CEO of Textron Aviation’s parent company, said: “Our business closed out the year with another solid quarter. In aviation, we continue to see favourable market conditions, including improved aircraft utilisation, low pre-owned inventory levels and strong customer demand.”
Order activity remained strong, said the firm, with backlog growth of $655m in the quarter and $2.5bn for the full year. That resulted in a $4.1bn backlog at year end.
“As a result, we delivered aircraft on a more linear trend for the year, which improved manufacturing efficiency and cash flow generation,” added Donnelly.
But revenues of $1.4bn were down $201m from a year ago, largely due to lower aircraft volume, partially offset by higher aftermarket volume. Segment profit was $137m in Q4, up $29m from Q4 2020.
Donnelly said: “Also in the year, we saw sequentially higher aftermarket revenue on a quarterly basis, driven by increased aircraft utilisation.”
For the year, Textron delivered 167 jets, up from 132 in 2020, and 125 commercial turboprops across 2021, up from 113 the year before.
Looking at new products, Donnelly said Textron continued its “product refresh strategy” with the introduction of the Citation M2 XLS and CJ4 Gen2 aircraft. Elsewhere, the Cessna SkyCourier completed its flight test programme, with 2,100 hours of activity. Textron expects FAA certification in the first half of 2022.
“Looking to 2022. In aviation, we’re projecting growth driven by increased deliveries across all product lines and higher aftermarket volume,” said Donnelly.
Textron results – at a glance
- $1.4bn in revenue in Q4, full-year revenue was $4.56bn
- Delivered 46 Citation business jets and 43 Caravan and King Air turboprops
- Fourth-quarter profit was $137m
- Backlog rose by $655m quarter-over-quarter