We’re probably looking at a one-to-one book-to-bill as we progress through the year, given the lead times and the ramp in deliveries.
— Scott Donnelly
03Detailed Report
TXT
Company TXT
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
Textron reported Q4 2024 revenue of $3.613 billion and GAAP net income of $141 million, with adjusted earnings per share of $1.34 for continuing operations, reflecting a divestiture of non-core items and a sizable impact from the Aviation work stoppage in 2024. The quarter was characterized by a sharp rebound in gross margin (0.901 billion gross profit; 24.9% margin) and a return toward production stability after the year-end strike, though margins remained uneven across segments. The company closed 2024 with a robust backlog of $17.9 billion, up $4.0 billion versus 2023, underscoring durable demand across Textron’s diversified portfolio and setting a constructive base for 2025 execution.
Key Performance Indicators
Revenue
Increasing
3.61B
QoQ: 5.43% | YoY: 15.25%
Gross Profit
Increasing
901.00M
24.94% margin
QoQ: 83.13% | YoY: 72.94%
Operating Income
Increasing
141.00M
QoQ: -32.86% | YoY: 105.47%
Net Income
Decreasing
141.00M
QoQ: -36.77% | YoY: -29.85%
EPS
Decreasing
0.76
QoQ: -36.13% | YoY: -26.92%
Revenue Trend
Margin Analysis
Financial Highlights
Quarterly and segment-level highlights:
- Revenue (Q4 2024): $3.613B; QoQ: +5.43% (Q3 2024 revenue was $3.427B); YoY: decline approximately 7% versus $3.9B in Q4 2023 as detailed in management commentary.
- Gross Profit: $0.901B; Gross margin 24.9%; QoQ: +83.1%; YoY: +72.9% (reflecting mix and a rebound from strike-related inefficiencies in 2024).
- Operating Income: $0.141B; margin ~3.9%; QoQ: -32.9%; YoY: improvement vs heavily pressurized Q4 2023 results in some segments but overall lower year over year.
- Net Income: $0.141B; Net margin ~3.9%; QoQ: -36.8%; YoY: negative due to the year-ago items and the profit mix across segments.
- EPS (Diluted): $0.76; QoQ: -36.1%; YoY: -26.9% (reflecting the mix and one-time charges in 2024).
- Backlog: Total company backlog $17.9B at year-end 2024, up $4.0B from 2023; Aviation backlog $7.8B; Bell backlog $7.5B; Systems backlog $2.6B.
- Cash flow: Operating cash flow $0.447B; Free cash flow $0.294B; Net change in cash $0.094B; Cash balance $1.441B at period end; Cash conversion and working capital dynamics mitigated by ongoing ramp activities and strategic actions.
- Balance sheet metrics: Total assets $16.856B; Total liabilities $9.869B; Stockholders’ equity $6.987B; Debt $3.874B; Net debt $1.693B; Current ratio 1.764; Quick ratio 0.838.
- 2025 guidance and cadence: Textron targets revenue around $14.7B (up ~7% vs 2024) and adjusted EPS of $6.00–$6.20; Manufacturing cash flow before pension contributions guided at $800–$900M; Capex ~ $425M; R&D ~$500M; average diluted shares ~184M; segment-level guidance highlights Aviation ~ $6.1B in revenue (12–13% margin), Bell ~ $4.0B (8.5–9.5%), Systems ~ $1.3B (12–13%), Industrial ~ $3.2B (4.5–5.5%), eAviation a small loss (~$70M), Finance ~ ~$25M segment profit.
- Management tone: 2024 headwinds (Aviation strike, Industrial softness) are expected to abate in 2025, with an emphasis on productivity, backlog execution, and margin resilience in core platforms while accepting mix-driven margin dilution from FLRAA ramp and increased commercial activity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.61B
15.25%
5.43%
Gross Profit
901.00M
72.94%
83.13%
Operating Income
141.00M
105.47%
-32.86%
Net Income
141.00M
-29.85%
-36.77%
EPS
0.76
-26.92%
-36.13%
Key Financial Ratios
Gross Profit Margin
Fair
24.90%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
3.90%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
3.90%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.84%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.96%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.76
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.50
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
25.40x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Fair Value
1.99x
Price-to-book ratio reasonable for profitable companies
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