Textron Aviation reveals third-quarter results for 2024 affected by strike

Textron Aviation has released its third-quarter financial results for 2024, showing that a recent four-week strike in Wichita has greatly impacted production and caused delays in aircraft deliveries. 

“In the third quarter, Textron Aviation experienced a strike upon the expiration of its existing labor agreement with bargaining unit employees that was recently settled with the ratification of a new five-year contract,” Scott C. Donnelly, Chairman and CEO of Textron, said in a press release published on October 24, 2024. 

The strike led to a revenue decrease of about $50 million and a profit drop of around $30 million. Overall revenue remained stable at $1.3 billion compared to last year, with a $36 million rise in prices mostly offset by a decline in delivery volume. 

In the third quarter, the company delivered 41 jets, an increase from 39 last year. However, commercial turboprop deliveries fell to 25, down from 38. Segment profit was $128 million, which is $32 million less than in 2023, primarily because of the reduced deliveries. The backlog rose to $7.6 billion, an increase of $162 million from the last quarter.

The company announced that its net cash in the third quarter of 2024 totaled $208 million, down from $270 million reported the same time last year. Manufacturing cash flow before pension contributions totaled $147 million, compared to $205 million in 2023. 

According to the company’s report, in the third quarter it made $1.18 per share income from continuing operations, a decrease from $1.35 per share during the same period in 2023. The adjusted income was $1.40 per share, down from $1.49 per share in the third quarter of the previous year. 

Textron also revealed that it has given back $215 million to shareholders through share repurchases. So far in 2024, the company has returned a total of $890 million to shareholders through these repurchases. 

Due to the strike, Textron has revised its overall earnings outlook for 2024. The adjusted earnings per share are between $5.40 and $5.60, a decrease from the previous range of $6.20 to $6.40. 

Additionally, the company has lowered its cash flow forecast from production to a range of $650 to $750 million, down from the earlier estimate of 0.9 to one billion. Textron also intends to set aside $50 million for pension contributions. 

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