Earnings call transcript Q1 2023

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Operator

Thank you for standing by and welcome to the Q1 2023 Textron Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's conference is being recorded.

I would now like to turn the conference over to your host Mr. of President Vice Salander, Investor Relations. Eric ahead, go sir. Please

Eric Salander

Thanks, good everyone. Bradley, morning, and

forward-looking mention I'd during be These our to SEC begin, today's detailed we also release. which we risk our are factors, various like today. filings expectations Before in and to will are subject estimates discussing call in and statements press future

Officer. Chairman Frank Connor, and On today, the CEO; we call Chief have Financial and Scott Donnelly, Textron's our

website. Our presentation our Relations be section in found Investor earnings the call can of

quarter billion, $XXX in the $X million $XX last the $XX in profit Revenues from Segment year's were the from up first of million first million, XXXX. quarter. quarter was quarter down

year's $X.XX During quarter, net reported per first income share. of this we

share in year's Manufacturing a pension a in flow compared quarter. income, contributions, XXXX. last before measure, quarter cash million $XXX net quarter measure, the in per the non-GAAP first million per of totaled share to $XXX non-GAAP $X.XX first Adjusted $X.XX was compared to

With Scott. that, I'll turn to the call over

Scott Donnelly

and morning, at a consistent with Thanks, Systems in year's lower $X.X XX down Bell, at and and Aviation, billion. XX solid to quarter revenues last up XX in Backlog turboprops, grew delivered largely last products. turboprop from expectations. year solid demand XX offset We At and in we and up Revenues good the first first our Aviation Industrial Eric, the jets, from quarter. by first everyone. quarter, continued Aviation jet quarter. commercial see across $XXX million had

includes XXXX. in as quarter, with aftermarket support initial growth contributing King the remained fleet contract options X% year's XXX aircraft Multi-Engine utilization System XX Aviation's Training deliveries Textron received This to of Air up quarter. Aviation in Navy last to an associated contract revenue XXXX to and quarter, first award compared through XX strong on for the U.S. the In aircraft for equipment.

Textron of an April. Bell and certainly Textron announced Systems. after five teams and CEO, the who the our and as in Bell military retire Lisa She's of the end for company January job building strong We confidence succeeding of returned years customers. Lisa outstanding CEO more done to her will Moving at the Snyder, with Systems XX Mitch the to in Bell. President at appointment than Atherton as years

I leadership. want Mitch thank to for his

he business, During product his wins and of with innovations. technologies tenure, Bell's significant oversaw at military new along development

Earlier to allowing protest month, order contract was U.S. and subsequently the work contract the FLRAA denied the proceed. Army the canceled on this stop-work

last of we XX quarter. first side commercial year's XX the Bell, delivered in On down helicopters, from

saw and fleet will all customer we the which order for commercial four Police BELXXXs, expand across quarter, activity our including additional products to seven from their solid Polish During in the markets, National aircraft.

a saw good we Systems, programs. higher across margin revenues our performance Textron At on

competing selected delivered among Quad system Also systems down program, were Increment-X During to five unmanned future U.S. that during Aerosonde of was systems the the quarter, for Systems craft Ship-to-Shore Connector the Navy. Hybrid Navy XXX unmanned the competition. delivered the of aircraft Army's seventh the quarter, craft air tactical

detailed design the construction are There and under to be remaining two contract. craft delivered now

lithium Moving higher the see to in business system battery skid for higher part plates. demand of quarter, thermoplastic in Industrial. Skid company's first Pentatonic a new product we line, Vehicles battery supporting pricing to vehicle plate production. from is composite Specialized strong battery by the and automotive Pentatonic announced Kautex. underbody golf continues Vehicles, OEM the an We revenues electric for order driven saw protection the At Specialized volume, and its Kautex, both product.

Moving to eAviation.

option further quarter, the Trainer for XX network. Airlines Pipistrel's and the expand East Also aircraft for partners we two Alpha the During the distribution distribution in aircraft. Mesa route quarter, announced on new finalized an to we U.S. with XX existing additional Coast

we the quarter, CW the Velis displayed customer models. both Panthera during aircraft Pipistrel's and interest [indiscernible] Electro in receiving At

I'll call to the With turn Frank. over that

Frank Connor

Scott. everyone. Thank morning, Good you,

contributed, of starting Aviation. how the each review with Let's Textron segments

at XXXX, higher Aviation and quarter, of included Revenues $X.X higher Textron from $XX $XX volume. in million of reflecting $XXX the aftermarket quarter of which at volume profit million of $XX pricing million, billion from $XXX by $XX higher of million was the first were higher defense up in the Segment partially million. first year up largely and at segment an ended the the ago, performance million favorable quarter inflation unfavorable mix, $X.X million impact billion. pricing of impact a and offset from due net to volume from $XX the of Backlog

million and down lower billion. spares year's of million, quarter, lower $XX last H-X mix, a offset were as down $X.X and quarter in in performance million, first military costs. lower research development partially of $XXX volume support primarily favorable V-XX volume year, expected, reflecting last from the Moving profit production the on segment by from Bell, ended Segment lower to at was reflecting volume. and $XX $XXX million $XX impact Backlog from reflecting revenues million revenues, and

the million, $X At profit performance. a Textron higher first in $XXX ago, due primarily impact year of million at largely Segment a were Systems, from billion. revenues reflecting Backlog million quarter, favorable $XX $XX to year's last segment million from quarter from volume. this up was $X ended up

and from pricing, unfavorable of to mix principally the primarily inflation, and by line, mix quarter, $XX Specialized million, impact was higher million performance. and revenues a volume from due partially at quarter Industrial million Textron from profit Segment in higher and up Specialized $XXX volume last largely first from million of Vehicles product first Vehicles favorable Kautex. XXXX, due up net an of both impact the year's $XX $X to were offset

research and segment million and $X development in were quarter, revenues reflecting were loss $XX million primarily and was the Finance revenues $X profit Textron million. segment $X costs. segment eAviation was million

of interest pension X.X component million. million quarter, profit. shareholders. and $XXX non-service repurchased to asset segment was returning LIFO amortization expenses post-retirement $XX $XX million, million and the below we million, was income $XX $XX Corporate in provision Net shares, cash were were Moving approximately $XX inventory million, million. expense the intangible In was

share wrap up expected of To be guidance, earnings a reiterating adjusted $X.XX. to per in year are to range with we our $X full

to expect full before of continue billion. pension million contributions flow $X to also year cash manufacturing We $XXX

our concludes remarks. prepared That

can Bradley, for So open the we Bradley? line questions.

Operator

from line Of question our Jefferies. Kahyaoglu of Sheila And Please first the comes with course. go ahead.

Sheila Kahyaoglu

you and Thank good guys. morning,

Scott Donnelly

Good morning.

Sheila Kahyaoglu

of cleared, in wanted times about Frank, work? value was just about the some dilution think profit? performance Lockheed. I I And ask Bell the does change to the favorable how development Textron's FLRAA the But profitability. are two thinking nearly this protest how the you you overall, trajectory with And development mentioned thinking about Bell there. given just now bid

about how revenue we in of think this So terms contribution? do

Frank Connor

our say guidance. that I'd we for Well, in a we basically or had we had when FLRAA planned anticipated delay gave

going quarter we quarter, roll eight above had for not how So terms Obviously, nine to we FLRAA that billion Bell in with quarter. guidance. in a seen of a the consistent had is revenue and of this $X.X margins

guided So revenue do we to do expect growth. to see we be within to. that We that margin expect had range

think this Bell a for will we quarter the low be So from revenue standpoint.

kicks with being that, revenue of ultimately that FLRAA with in, kind talked see but of get lower some rates margin. terms in. we coming contribution volume we'd We'll on a as So growth where expect about headwinds booking in margin that associated we

good offsetting But how positioned this and performance nice in cost we that team is feel kind business. a of did in Bell volume, about really overall, job a decline from the structure the of quarter, the standpoint in

Sheila Kahyaoglu

sort Aviation just what think X%. we gross a growth then how we or one And you. you about price the How changing? market and Scott, do of we that do maybe, $XX that Is think of for mentioned think expect I pricing? the should as dynamics on the about million are of side

Scott Donnelly

Yes.

pricing Sheila, so, built the think mean, is into obviously, backlog. I look, well I the

track we costs. on are in expectations of I our terms think on

continue still as positive. would I expect So see net to marketplace. of pricing good is in to Demand a inflation the

out is bookings. pricing stable the future we as there think out look I into

So again a to positive of forward. a reasonable I expectation price to net inflation see think going we're to as that continue it's going think

Sheila Kahyaoglu

you. Thank

Scott Donnelly

Sure.

Operator

go Doug next line question the comes Please our with And Bernstein. from ahead. of Harned

Douglas Harned

Good morning. you. Thank

Scott Donnelly

morning. Good

Douglas Harned

Silicon and through. decision-making quarter orders Aviation. period did we similar you find at How order you around delayed that Have in Aviation? a orders Gulfstream crisis pushing terms hiccups heard actually flow? that Yesterday, some Bank of had of When seen from the had the you Valley banking Dynamics General at things in look in that lot first collapse there

Scott Donnelly

guided know positive don't that Bank, Valley something I I would than greater a the of around book-to-bill. specifically quarter, Look, one-to-one a in to to Silicon good. had kind pin when We book-to-bill we which is one-to-one but

to I think the that's people I that time about any wait economy out bit. a events in targeting. have adverse pretty of aircraft we're me or healthy in is right what general, disruption say easy let financial there guess little hey, have it's it time in that would And certainly for the we in place. I think kind look, or a now you lead say,

I we have we think that's there you're the end not the enough if have quarter good right now the below you of position backlog a down have one-to-one, even that out where world. is

few out a backlog. not you the that's If somebody defers a there months, beauty That's have for the problem. in

you'd would unlike delay, term. you then the and profit hit some periods interruption and So a of in see in that revenue had previous you where near terms

you then there something we have think bit, where little backlog out somebody I sufficient that do if a even fine. have waits that's

Douglas Harned

give should this talking about When a more this do forward as mean, in at factors look look year. to how you grow there, order somewhat you fleet, beyond you you when expect for one airplane the you the to aftermarket more we do the then growth think or you're other look pricing? but book-to-bill such And that, might of content and I as proportionate aftermarket. about the

Scott Donnelly

is necessarily right? so more adding look, is in opposed mean, that with fleet numbers the make impact. think doesn't So it's correlated any small our given more the a around in aftermarket flight any fleet closely as Well, to I hours growth quarter huge real the numbers. lot I utilization, even

primarily it's think fleet driven remains I in utilization high. the and So around very utilization

Douglas Harned

you. Thank Very good.

Scott Donnelly

Sure.

Operator

from Seth the And JPMorgan. line go Seifman ahead. with of Please our next question comes

Seth Seifman

Okay. and Thanks very much, good morning.

to guess, repurchase to share for nicely year additional you thinking cash saw step year? time quarter. You coming share recent I about have from that around and are up the I whether your maybe you amount verdict talk maybe the things thoughts might guys repo what some and this up. expect a in the so it's you your step in on can where repo and in guess come

Scott Donnelly

I of up been be that's in buying. quarter. did feel in that a will still here we've first be do share And return things us see is through capital think repurchase. the we that Well, step to you sort opportunistically, place of We've said primary always so what good to do our

we stepped the so $XXX in up And million quarter.

Our the company be strong. cash to continues flow in

guys you as We the have know. cash lot a sheet, of on balance

think I with so at in the to probably to we of X% year, beginning we guided back And of shares. expect X% consistent buy the what somewhere the that outstanding

indicative So the that. first was of quarter doing

would of that, press that going something been see the in In that's who future. the to how the but this not media any and not process, that legal along as the knows it come we in intellectual appeal processes, out time Obviously, there in that's goes expect we're out. going near what's property, to There's cash through terms much on play verdict. comment around to

doesn't factor of terms at thinking into in this that share So our repossession time.

Seth Seifman

this morning and leave Thanks on. pass very I'll great. much. it there it Okay,

Scott Donnelly

you. Thank right. All

Operator

the our Rumohr Von Please And comes next go of ahead. from with Cai Cowen. line question

Cai Von Rumohr

the question for and Thanks results. taking nice

seeing because also in some obviously commercial in terms was So orders maybe relative got of quarter? at there you're supply color jet defense chain? what some in trend the you the book-to-bill And Aviation, biz us also, give

Scott Donnelly

some of Obviously, create on resources third of which, affects we've think unchanged. it I supply as did this bring you know, lines disruption, about some We as largely last here of So is fourth is some the that would of our the conversion in much Cai, our of earlier, first year. I year. a and talked in the place than quarter is that that a half side, lot say labor chain better inefficiency position was. kind here in does

we largely we're want levels be. to the at staffed But where

and are we But have some improved. So driving the we that say have still issues plant. I front, how to causing are things us operate sequence suppliers do in that to certainly of inefficiencies things would on continue out

getting necessarily it's I'd say not getting it's but -- better. worse, So not it's

Sometimes it's frustrating.

be an another If problem. I expected kind through one and of most -- this And you becomes of resolved of year. a to issue kind the balance we get that supplier ongoing of

So there's but I don't big challenge. there, think a it's any surprises still

out that. going but than -- As order, happy to certainly, and say with in both down we don't jets far good book-to-bill the It's -- how We our break about feel was or demand it programs, is turboprops. as the we're look, I'd we're greater models one. individual

think I place. we're good pretty So in a

Cai Von Rumohr

a then X.X%. shares like to Seth's And million Okay. is question. X.X follow-up

in half target essentially, the So of one done year. quarter, buyback your for you've

you You terms this DGI of won basically had What's the X% suit. X% to bluebird the the that exceeded patent FLRAA, in the of repo? chance is

Scott Donnelly

not Well, look, through and going press see again balance I on the you out But continue think, of we'll to this I plays it we're really Cai, opportunistically, the know, it's to how guidance. thinking to as mean, to year. We means in of returning we're how change how formal you indicate no we're of primary value it just And to kind there's be guys shareholders. continuing thinking. our

Cai Von Rumohr

you very much. Thank Fabulous.

Scott Donnelly

Sure.

Operator

Please go question next the our comes Stallard line Research. And of Vertical ahead. Robert with from

Robert Stallard

Good much. so Thanks morning.

Scott Donnelly

morning. Good

Frank Connor

morning. Good

Robert Stallard

holding for XXXX? in divisional cash the year. guidance and there Are of were all, EPS the any said Frank, changes you guidance for First flow you the

Frank Connor

it's roughly had in with where we line been. No,

Robert Stallard

Okay. And we're growth you. Scott, you performance. sustainable particularly the for cycle on given think seeing shorter is quarter pretty one in your then, double-digit backdrop healthy that economic do Industrial the products? How that is

Scott Donnelly

to something we're on. an that plan roughly I'd kind it's of eye keep we thought. that the to look, say Well,

have think things. of seen -- certainly I and side expect we you're short-cycle the in of see some to consumer softness

so let's volume industrial we're at on some of and commercial of our applications. industrial we're pushing more commercial some or, applications we the our But instance, certainly allocations, and for some strong And of consumer in than performance serve say, production seeing side. our still capacity to when look the

that different of we one where continue balance some of uncertainty, that net serve we that's close And the there's the we'll markets it. there's So But things, drive those a obviously, enough demand eye see keep -- all the I kind think on to of all to across year. that growth. through of

Robert Stallard

you. Thank great. that's Okay,

Operator

comes David next the with line our question from Barclays. Please of And ahead. Strauss go

David Strauss

Thanks, good morning.

Scott Donnelly

morning. Good

David Strauss

the in QX, lighter were quarter. the much there in how deliveries always jet in were looking quarter, anticipating? a big little build those a you inventory biz pretty inventory know at I Scott, Just some than you inventory, but built was

relative know, I in deliveries where you deliveries, kind came some you to some of thinking? you or So don't what missed were

Scott Donnelly

all also thought plans, our for mean, of terms I it's long, year something I in, see pressure but but headwinds. a in right? Dave, of would Well, sure, is it's terms I couple we mean think aircraft, going factored to we we of in us what

I of very in So think what don't year. from the disconnected we're indicated we terms the guide for

David Strauss

delays? supply Okay. those Was chain that What related, decision? customer drove

Scott Donnelly

of through course and chain parts Most going see delays are the things to we're sequenced the through able being get the year related just and test. of getting to supply

in real any anything. impacted seen haven't change We behavior customer that's

David Strauss

year. is various picture I should Bell this then with Obviously, look give H-X couple how we out should you beyond think V-XX what I and for wondering the off, pieces? now given thinking all of And Okay. was how moving not aftermarket. rolling maybe or if these a the for FLRAA think big could all about the over growth we profile the about outlook pieces, given Bell next sure in-house, thinking moving V-XX the years think But

Scott Donnelly

ramping I as look, Well, program up. is through kind think be of We year certainly as the Bell indicated into Frank and well. this year expect increasing of next the in FLRAA revenues the Sure. balance to

production Clearly, and So going as feel primarily be down. side, development on that higher been and I think margins about we have program volumes we of those that's on a effort cost the V-XX at to proportion very revenue going good growth in lower plus that. H-X bring

guide of expect have led us kind that be that and mix forward. year have go this we do of we would that's where there we that issue. So think I the where out kind That's to you as to

be a we're going business is growth going offsetting relatively to in a get margin. be a going weighted but levels of that's to not So that's stay this margin number to a into towards heavily past of lost to the back business, healthy the as thing but it cost-plus be higher lower mode, certainly we've it's to margin think at seen years. But going revenue that it's the I going piece

David Strauss

you. Okay, Thank that's helpful.

Scott Donnelly

Sure.

Operator

with And line Please Walton of our Myles next go question the Wolf from comes ahead. Research.

Myles Walton

Thanks. Good morning.

Scott Donnelly

Good morning.

Myles Walton

last And a or months, more more to interest? directionally Thanks. months, to if And defense? the Ambrose XX in where is of of being or taking is be you two if of couple contributor your of an there guess, a I XX indicative want executives so, it additions towards M&A Kennedy. FLRAA inorganic Scott, organics portfolio Directors indicative and of trend Richard where last Tom Board I'm with from curious the defense the obviously and sort the

Scott Donnelly

these lot are guys point, your both the of defense Look, to and Sure. deep experience who have, aerospace world. a in

sort always here, been systems of with see growth, business of in opportunities in the systems. has FLRAA I we're that in think, to defense growth company that and to the see Our XX% the obviously, expecting and ongoing opportunities future we're future in expected near with the Bell in

like felt of guys aerospace They But company. technology. know they to the recent for they up beef the little retirees, bit sense lot and know more a are defense their A&D know it acquisition, I current. a side these of made us on

two So great Board. they're adds the I think onto

obviously, know our So these there's individuals are space no real high-quality underlying super of well. a very real but message, couple that

Myles Walton

And clarification, could. was good. I if X Very just Okay. there

just you've maybe price you fixed and incentive is incentive talked fixed isn't? about risk On Can the the portion version. cost-plus Thanks. price FLRAA you on on illuminate protest, taken where disclosures from and the us

Scott Donnelly

I program understand a what I And We guys management principal deliverables is there there's two price. several are is. is operation think under of you program. as that and One this know, fixed risk. full of which then layer, low kind Well, think of sort pieces

There's -- has production at phase, is a that fixed the price. material that aircraft about craft test are part initial EMD and Army. the then And the limited development there user are craft in eight there's that's which first for test [indiscernible] of the the

plus. So the cost -- weighted heavily towards but it's

Myles Walton

Thanks again.

Scott Donnelly

Sure.

Operator

our go Shapiro next Please And the question Research. with of from line ahead. comes George Shapiro

George Shapiro

Good morning.

Scott Donnelly

Good George. morning,

George Shapiro

supply performance similar. in million margin led in the And that an this I had of That's same the to XX% you chain quarter. the incremental $XX issues, million, quarter. the $XX fourth Scott, impact, aviation mean, is

the that to you can chain expect So continue? the do going mentioned are had issues year? of Or of the overcome supply you rest some that you

Scott Donnelly

Sure, George. I of it half the think in Look, will the abate year. back

about, talked that a of we the through back experienced half As that obviously A inventory. year. those lot were are things goes of efficiencies lot of in last

So and here of first be aircraft first disruption of year. year performance in half with that in less year. releases of anticipates half in this last that this it the the last than that the deliveries Obviously, half will the was

less far, that. or more seeing we're I And think so

I turnovers is running certainly, resources said, fact think better. would still our But higher running than churn the factory attributable issues in That's that as I historical. we more on we've the way. There's than to is plant like. board. efficient still largely more the There's got a

issues the Now up, back than in net But of those the supplier of first year said. think all year. will I better lower impacts that I see the half of we still of the as half pop that, efficiencies

where expect XX%, we kind again with is be. even of to So it which that

is our for total percent, for the is which year, total we for XX expect the business year. conversion, appropriate something of still to which think realize is overall sort the I so

George Shapiro

Okay. expectation for year? changed about And the then have deliveries anything you

Scott Donnelly

No. really. Not

we still guided. tracking I think what to we're

George Shapiro

you report. Okay. much. Thank very Good

Scott Donnelly

Thanks.

Operator

Peter line ahead. question with our the Baird. from comes And go next of Please Arment

Peter Arment

Scott. morning, results. Good Frank. thanks. Yeah, Nice

Scott Donnelly

morning. Good

Peter Arment

one in I'm questions been low. on Hey, a a There's I'll kind Aviation. increase aircraft it's there. had out Scott, just in-production one. ask used sure remains you've of still aircraft of quick slight very lot

market? maybe any watching used you're Just that or your from comments on perspective the

Scott Donnelly

small Look, they carefully. course, you numbers there look and big very of like Peter. Sure, numbers. percentages, watch coming this very percentages obviously, see And we are on big out,

it's to So I kind of less of a years available our when old, a the couple it's think XX we tenths at when around -- that of used of look percent zero look at fleet. -- than you

it's that I under X,XXX that mean, old aircraft. right So XX number. now we size of really our a of really, talking small are versus over know nine we're fleet aircraft about years

of -- small see it's look, So the is we for XX right? in XX, sale are and aircraft. absolute a marketplace, less remember, an So year plus very basis, on than few the half are trend those a of are these old numbers, percent, but available these about

So used for positive very, terms a available very aircraft sale. environment still of in

Peter Arment

the Thanks much. color. appreciate so I

Scott Donnelly

Sure.

Operator

comes from the question next line with go Skibitski our ahead. of Global. And Alembic Pete Please

Pete Skibitski

on lookout in and on how risk move that view wondering any a review milestone morning, exact as the I'm Myles' you A GEO good is aircraft Eric. should of follow-on strategy, little wants. the just we bit Frank risks Army Hey, production Typically, FLRAA, I kind right? I'm there from kind a schedule think if the for? the now technical as and are kind you the it configuration So to the of to, was there, important perspective, switch the on and to have milestones congrats, of on to development Scott configuration you FLRAA. your from but Scott, you the to what get your and question past be wondering, your big keep-sold just gauge of contract

Scott Donnelly

both Sure, touch Look, a going this prototype Army pilots of them. guys of think and I flying points, lots really, as the producing through way Army design, has guys you decade, conducted back right, goes acquisition, development, the Peter. them, soldier this flying aircraft, know,

ongoing was even under finalize risk and the evaluation even As design program, on. the going we the the as CRR risk RFP to continuing OTA reduce went proposal whole effort of period formalities which was during was for formal proposal valuation, whilst and through time, know, this reduction of the activities the you there and

really, And for so technical the I really aircraft the solid think we a good is itself. here baseline have news

go, that to program. here is ready EMD team go great a execute have now being that's to in place, the reassembled We

and the the Obviously, lot really good the they development ensures around baseline. the mission stuff technical really, how we I over of new systems of there's and and in the time. MOSA systems But think for have a changes capability - mission that system accommodate here architecture that a of

very we're to to The about we've and that and flown. and aircraft the go close very, designed built already build is aircraft design that fly and

So effectively I chunk a that think ready go there's we're big get risk been has it. of reduced and very a at to

Pete Skibitski

Okay. I appreciate the color.

Scott Donnelly

Sure.

Operator

next Kristine from our And with Morgan Stanley. Liwag comes line go the Please of question ahead.

Kristine Liwag

Hey, good morning. Scott, now. cycle Frank, when a you it's look at last. stronger Industrials has is got clearly Aviation the Bell the FLRAA, portfolio backlog, this secured today, stable versus

sheet With expand markets? into your the balance pretty and appetite tap secular vertical low, another growth what's to into

Scott Donnelly

always Look, or -- we've is we said, organic obviously, I on But out as think come there. keep there's an market growth. plan to opportunities things eye that our still as we'll built things around we --

terms Investments I organic in of look, we've us those and And the strong what in businesses are seeing. point, have that we're we at off have, been which do paying sheet. balance very think growth I substantial think for we this a investments making

have We hand. lot on of a cash

in We to our continue on cash execute the We'll business. have generation buyback programs. strong

what's along on came just space going buyback as to But frankly, that our it's and I clear share look and accretive with would that we we it. value with thought win at be where be made a it would something continuing have always and buyback, said, program. A&D contrasting to share something could that the knew we was than something shareholders better our a sense in was, If that

Kristine Liwag

you. Thank Great.

Scott Donnelly

Sure.

Operator

of And our Bank with Please Ron question the ahead. go that of last from Epstein America. line with comes

Ronald Epstein

good guys. Hey, morning

Scott Donnelly

Good morning, Ron.

Ronald Epstein

in kind the ahead Myles' for find positioning some kind of walk about Scott, Systems. and you of of and a -- to on that if walk back call, maybe opportunities through particularly But the you earlier could through those mentioned for interesting could you company of you the couple growth question more company. Bell is you the in defense

Scott Donnelly

I that is the would win FLRAA stand-alone important future. say to Sure. on our hugely basis a Well, Ron,

the investing positioning guys done and great over past our in for think job decade a that. have I

Obviously, right where, the think continues. as has right a know, a I have got team that years made home is It's one run. FLRAA developed that but a the going you program, to FLRAA product the behind We've the few program again, be investments. our I think people

program. know, the we're that But all on in engine fly. risk and to that activity waiting further As side the again, of reduction thing you kind Army continues have affinitizing

I clearly, think that's opportunity. a great So

I think great have solution. a we

activities, future off in of systems which, rotor technology, which made in Navy great publicly think lot the I space, and we've the the are are again, and leverage are looking solution potentially the lot the on that out will There there tilt terms already can the Corps a be a our program. particularly at, Marine of a of investment XXX

further VTOL assets. think But to in that off, likely from bit step I our provide a another longer that's were High-speed but little think range Bell opportunities. Those higher capabilities to even core speed, standpoint, good go some a a higher again, I technological be adaptations. we're arguably fundamental really place leverages, for performing, of future to those

I guess of number to tilt that think lot different think think a continue I to franchise we we Bell in would that of So technology I my Ron, into and grow on opportunities I rotor, a have around of a have the phenomenal say view, adaptations franchise future. I

the On a programs side, system -- okay, there. lot there's in of that's

of a the its driver as phases think here program for I the win future. production going we've moves into EMD is ultimately us with the that from Northrop in on growth Sentinel forward --

a us long XMXXXs. wins new XMXXXs is some and side munition great on with time, the great for franchise We for which really a have Again growing.

There's us, Future as I big Tactical UAS the land know, is good opportunity. ARV you Corps mentioned program with Marine our down-select on side, a the certainly on but OMFV big for FTUAS. to Shadow the side. the be a couple programs, of Army continues Army vehicle on a

to up out opportunities for competitor. there down want So or certainly stuff, a won we've which mean those wrap I viable of either think lots there's I been I don't or but we're we've selected

we driven that I enough see You're as of but organic things, all being can these in growth win we're not business opportunity, going there's of that place and enough well. out think lot to a good

Ronald Epstein

follow-on, And Ukraine? if shorter expected then months the in ago, X Maybe better? wouldn't the Got war I you stuff demand seeing you in you the you. can. maybe driven much from being are Are maybe have term, XX orders for that seeing

Scott Donnelly

No, sort systems. out vehicles, not some UAS they're the put of has in that surplus space. of in around EDA been being We're we're I and there come some different in are Ron. dialogue talk really army refurbished that largely land things would not, that mean There's some munition over but there.

So there's we've it's -- not material probably forward, impact far. opportunities us. relatively some there's be a but nothing -- speaking, smaller going to had to so there going are And some

Ronald Epstein

Thank it. you. Got

Scott Donnelly

Sure.

Operator

ladies XX And with after Eastern be and available replay that, will today XXXX. through for A.M. April conference XX, gentlemen, today's

You using the replay And and numbers Thank by the International participation those your does AT&T again X-XXX-XXX-XXXX, XXX-XXX-XXXX. code X-XXX-XXX-XXXX dialing you AT&T the again, your today. for at code entering access access for conferencing the any access are time system XXXXXXX. participants may service. for That conference entering dial XXX-XXX-XXXX, and may conclude XXXXXXX.

may now You disconnect.

Textron (TXT) 27 Apr 232023 Q1 Earnings call transcript