Textron Inc. Reports 5% Revenue Increase to $3.306 Billion in Q1 2025

Textron Inc. reported a revenue increase of 5% for the first quarter of 2025, totaling $3.306 billion compared to $3.135 billion in the same period last year. The growth was primarily driven by a $256 million increase in revenues from the Bell segment, attributed to higher military and commercial volumes. Textron Aviation also contributed to the revenue growth with a $24 million increase, mainly from aftermarket parts and services. However, the Industrial segment saw a decline of $100 million, largely due to reduced volumes in golf products and other areas.

The company's net income for the quarter was $207 million, up from $201 million in the prior year, resulting in diluted earnings per share of $1.13, compared to $1.03 a year earlier. Despite the increase in revenues, the cost of sales rose by 8% to $2.672 billion, which impacted the gross margin, decreasing it to 18.8% from 20.8% in the previous year. The increase in costs was attributed to higher volumes and inflationary pressures, particularly affecting the Bell segment.

In terms of operational developments, Textron's total assets increased to $16.942 billion from $16.838 billion at the end of 2024. The company reported a backlog of $17.242 billion as of March 29, 2025, down from $17.908 billion at the end of the previous year. This backlog reflects the expected revenue from contracts that Textron anticipates recognizing in future periods. The company also completed the sale of its Powersports business, including the Arctic Cat brand, which is expected to be reported in the second quarter of 2025.

Textron's cash flow from operating activities showed a net outflow of $124 million for the quarter, compared to a $7 million outflow in the same period last year. This increase in cash outflow was largely due to changes in working capital. The company also issued $500 million in fixed-rate notes during the quarter, which contributed to a net increase in long-term debt. The effective tax rate for the quarter was 14.1%, down from 15.2% in the previous year, benefiting from research and development credits.

Looking ahead, Textron anticipates continued revenue growth driven by strong demand in its military and commercial segments, particularly in the Bell and Textron Aviation divisions. The company remains focused on managing costs and improving operational efficiencies while navigating potential challenges from global economic conditions and trade policies.