Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Q2, 2023 Textron Earnings Release. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's conference is being recorded.

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

Eric Salander

Thanks, morning, good Kaylie everyone. and

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

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

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

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

continuing During this operations per year's share. second $X.XX quarter, from income of we reported

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

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

Scott Donnelly

and Eric, everyone. morning, good Thanks,

and second from quarter Backlog last products. second year's to billion. from Aviation quarter. strong year ending second a At in across segment XX.X%, turboprop last XX million, quarter profit the XXX we of revenue from all down in our up was continues XXXX. jet jets, solid and businesses generating and $X.X margin up quarter XX Second up points delivered XX turboprops, basis a grew XX commercial at quarter across of the solid see the execution, with $XXX quarter, Aviation demand

Hawaiian Aviation to order Air routes. the Cessna during XXXX an deliver in to passenger for received for XX and first the Aviation Also its expecting Air King quarter, Lāna’i XXXX. SkyCourier delivered interisland configured Special XXXs the Mission In quarter,

new in announced Ascend product ph front, the May. Ebase the Aviation Citation at Cessna On

and and enter large cabin feature XXXX XXXX the a avionics enhanced Garman to comfortable X-passenger with and range into engine miles, overhauls and aircraft that The Pratt time the efficiency. in will XXXX. service experience new flat improved nautical between windows XXXD of increased thrust Ascend expected fuel is floor latest suite, features

began to higher for the $X.X received to contracting Moving during lead and added including the ordering on four quarter. related program, FLRAA initial with Also Bell slightly quarter, were materials. engineers, additional activity Bell Bell on-boarding contract major in backlog ramping the in contract the billion Bell, suppliers revenues aircraft. FLRAA authorization the quarter. long of an V-XX also

of Aerosonde the Systems Hybrid At under from side year's first program, Also to XX slightly UAS XX the we performance aerial In competing Navy. were second up revenues. on Program. U.S. among option continued saw the delivered during solid last Ship-to-Shore Navy Army's Bell, quarter, delivered the On we four helicopters, the Connector Quad Systems delivered Craft Tactical design Amend margin the XXX higher to unmanned contract Systems the in quarter. Future Aircraft commercial Textron of that was June, Systems, systems Aircraft a awarded

American by the The builds. the led in prototype two selected down program. of is detailed Army U.S. manufacturer XMXX Lynx the Rheinmetall for Army's designated Team phase of Lynx. Systems and which Team part next as a advanced next of competitors the design of includes also Systems phase Textron program,

all and system quarter, our markets. elite four to a by powered street battery At end driven Liberty year-over-year both higher volume Vehicles. the new Industrial, Specialized our geographic Vehicles, saw Moving increased the legal Specialized by seats. Within volumes with we we Kautex forward-facing higher we in Kautex, LSV, vehicle announced saw revenues in across

design testing tunnel validation in process represent eVTOL the aircraft These significant step a we began the supporting development aircraft. Aviation, Nexus wind to and Moving on activities. tests

of integration the Additionally, VTOL we systems continued at hybrid facilities Nuuva, assembly electric Slovenia. unmanned aircraft in cargo our the our prototype and

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

Frank Connor

Scott, everyone. morning, and good Thanks,

starting Revenues of Aviation. volume second segments $XX offset reflecting $XX higher partially how each mix. quarter the review up and contributed, from at of with pricing $X.X Textron Let's XXXX million of the Textron billion by million, Aviation were lower of

Segment supply labor profit million by partially from a largely in was of quarter, from segment net performance unfavorable Performance to related year in performance $XXX manufacturing the unfavorable at million included second ended ago, inefficiencies. million. the $XX up the Backlog impact $XX chain million, due inflation and pricing largely of billion. favorable to offset $X.X $XX of quarter an

Backlog from military year revenue were million, of offset quarter at from quarter $XX of up second million. $XX $XX lower a last volume year's of was million favorable impact of pricing higher $XX to $XX million, performance $XXX and to impact largely up pricing net million, inflation and research in a due of last ended partially segment million million, from the Segment $X.X $X Moving mix. costs of revenues reflecting the due favorable to partially offset lower lower development from million Bell, and by billion. by $X profit

the were volume $X year's at Textron million, to Specialized and second ended from higher Segment higher Kautex year billion, the reflecting were and $X million. favorable second of at million of Systems, revenues down volume. segment million million pricing $X.X revenues up last $XX from largely Textron both $XXX profit quarter, $XX a up $XXX impact million from million $XX a quarter, At year's and quarter ago. of Backlog largely from mix Vehicles was last due Industrial billion. $XXX in

million. segment quarter segment $XX Kautex, were was loss mix and of $XX impact by performance. costs. from due were a from in an favorable and development revenues million and Finance partially $XX million, Segment primarily principally primarily from volume million of quarter, was unfavorable the profit inflation pricing reflecting and million of impact $XX Textron of of net eAviation of $XX million $XX $XX $XX segment profit the million revenues research at up and million million to higher XXXX, was offset second $XX

segment amortization and million net profit, income $XX were million, the provision of $XX million, $XX non-service was corporate components million, $XX postretirement below inventory expenses LIFO was were interest expense pension intangible million. and was $XX Moving asset

quarter, X.X to in Board the million a shares, approximately new we $XXX to in benefit compensation from repurchase management cash Directors to approved up In million capital dilution plans to under XX shares X.X shareholders. to of $XXX and authorization and returning of repurchase the Year-to-date, million for company for returning approximately cash shareholders. this have stock-based Textron's million million repurchased the the intends impact of which repurchased we week, Earlier offset opportunistic purposes. shares shares,

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

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

remarks. That our concludes

we for questions. open can operator, line the So

Operator

will Instructions] of Thank question come the first Arment you. from Peter Our with Baird. [Operator line

Peter Arment

Yes, Scott, morning good Frank.

Scott Donnelly

Good morning.

Peter Arment

Hi, just Scott, some way Thanks. I on out, maybe delivery you're the tracking, volatility? probably top really comments? still much kind managing of I much you about guess, been performance chain supply and mean, know skyline? overall Do start thinking Aviation, just out you farther your just of just are sold the now strong and I targets margins your so How line. I there's kind given with your backlog, the guess, with

Scott Donnelly

the strong so book-to-bill be is the on think a posted behaving and in market activity, order the again and market turboprops, Look, how still It's Peter. is I I Sure, we happy the both with demand we've so and really I to think terms quarter. of think quite in pricing. jets strong continue

good. So that's all

everybody hearing you chain not know, but challenge important, remains it's is modestly part the you're side things. Okay, the on from getting as getting still the challenge I'd is as think right? I probably biggest it's of say better worse, every supply

link of be. when inventory, may you think you a that I to have each like our and problems, we That's by a quarter jets are kind of at probably things But we look still will obviously So, creating sell. hey, little numbers, these many ultimately than we're you but but not bit despite hit think lighter would few the a issues. if things But it light weakest about be, year, what's revenue for but the little versus we're supply with of and obviously. the XXXX, and guide some margins those the very and will be with execution on forward, think we like where into I chain side inefficiencies still happy to will performance push going the dealing as would

of net So demand way we'll everything, challenges good through chain environment the strong supply continue of the fight year. it's and the of to some course through still our a

Peter Arment

follow-up. for that. aftermarket Aviation disclose the quick appreciate did was all? at And Frank, one what quarter in the I growth you just

Frank Connor

of XX% was X% aftermarket So and the quarter about for total revenue. growth

Peter Arment

Thanks it. appreciate again. I

Operator

with Kahyaoglu Sheila Thank go you. line of next the to We'll Jefferies.

Sheila Kahyaoglu

on and FLRAA? Good we about just morning, five specific how do for to add Bell, we Maybe $XXX do B-XXs, off included potentially The guys Bill here? think and the transition a about this about to could legs how to B-XX you. how million House program start that think thank Appropriations one

Scott Donnelly

is a CMV going Navy deploying good course, had Sheila, on the applications. while what's so, now there, Well, of Navy, the of XXs has the into

replacing and As was record based the COD originally [ph]. was program that the you program on awarded know, CX

this, the really the fleet, into realizing was a can out And we're is and just mission. there's things they've articles a been do number Navy, that they're of do V-XX from which deck big COD, lot there, they're was nice so you onshore. some with carriers that the sort there's as CMV-XX and of to replace designed about hearing public couldn't with what you getting of And the that aircraft to a airports restricted been fairly

Navy So cause more the the us the would V-XX like we've these of applications aircraft. the have to look, and to leading got say, that versatility of other is performance to

in to the of Appropriations a those be hasn't on I dialogue desire what But above record these or because XXs, CMV which House have program would ultimately the side things. more five there's the crafts. mean of of That around versatility you're of lot the Navy seeing is yet Navy of formalized that. the been and is

happy Navy -- that performance sort but now performance the continuing of beyond very is see the plays and happy record. of aircraft. So, production we'll we're this the we're how with aircraft see with of level the over or of The hopefully, we're some out program the we'll time, obviously so very

Sheila Kahyaoglu

Frank, one. that give so I Scott picture know a time if for And you'll maybe for this, you you Thank great. bigger both, on be and That's some start, could then too. color.

capital repurchase products? pretty about a large obviously, program capital allocation in for new Scott, How are you versus quarter. announced the thinking allocation? And repo then You Ascent, with

Frank Connor

to we've market need the to the first the do that of of it of about, so activity. We in business in the returning quickly. million seen we opportunistically are flow into that, shares obviously, down R&D pandemic cash obviously a continued to be but repurchase good and free it continue, usually the available about X% kind half X% year out that. So and a the through we've to remains to authorization share we're going of We've very available last came rolling talked pretty XX capital liquid the flow. were CapEx, capital been and million continue base be on we and repurchase really of shares cash -- beyond Sheila. in stock, to and reflects repurchase repurchased the back and a lot generate significant share X.X to allocation, lot We same, you've than of talked kind We've we're to expect our invest year, more through standpoint. baseline generating we a have to need of the free We from or of that's

Sheila Kahyaoglu

you. Thank Cool.

Scott Donnelly

That’s right.

trade R&Ds. I Sheila, a mean, with certainly see don't said, I Frank it As as

a high As key is we're R&D new growth. fairly We you in investing know, to products think company. the

lot seeing we're and that if with look Ascend just the our and Latitudes the current that lot products the driving us, the Aviation right nice of the growth think now a upgrades, investments out for a jet now on of you I turboprop at announced. side, both in we and play Longitudes, SkyCourier

the program turning over into in and growth if years obviously we've now driver at a a the obviously, Bell, FLRAA that's So the made investment great you for program, us. look FLRAA huge

side. of drive strong some all despite we R&D. businesses terms and profits us across in flexibility the making in back product right strong not keep making through program going that, that shareholders. that So we're to to obviously the investments and make our for we're the change we and to of We'll gives flow do need think But all we deal great that strategy what's and here think repurchase share allocate a cash of the the

Sheila Kahyaoglu

you. thank Great,

Operator

go We'll with the Citi. of to next Thanks. line Jason Gursky

Jason Gursky

Hi, good morning, everybody.

Frank Connor

morning. Good

Jason Gursky

market. wondering on the kind aviation was a if provide update general general I Scott, you could of

think for, up either Oshkosh. kind from had if jets general an general of your the be then I more view your one second to was both any you? learnings in show aviation into I update wondering of come a way show was make And are here as market? or would recently from market you that biz the there general and maybe general aviation important on other perspective and the pilots they market in up that for through aircraft their the just

Scott Donnelly

XXXs bulk electric all which the Sure. from top Look, demand mean, business, jets a about -- our the as the book-to-bill around now one when we’re of this, XXXs. show right but that's at Jason, to looking Oshkosh, and I we and the parts have and about -- Cessna good the and bottom. is much is you're our I kind strong of really nice that think market talk the stuff, that's as of the obviously, Pipistrel and the propeller and marketplace XXXs, aircraft XXXs, is a great aimed turboprops

demand GA schools. that strong that had. customer from from we've So There's really, really trading see very you always demand strong

kind have we're pilots of about that, you into years shift of shortages coming and your seeing discussion, for up, many people there's many, doubt pilot if So no right? the is talked

of that pilots airlines. the buying in, aircraft get lot but actual get training to so hours with the so they the So be to airlines a a putting the fleet into of lot pilots, fly are of they're in schools some pilots frankly, can of pilots come their the that through. a There's that need can not orders lot to industry, get increasing for more just they size eligible the of order activity

hours of of expensive those that by lot are we hour have as demand sorts aircraft, so less on well. using side built And best a per

market, a So Cessna all the Longitude. part nice the here everything or from a through up is way Velis robust Pipistrel XXX it's small

So very it's broad. -- very, the is demand

Jason Gursky

you. thank Great,

Operator

David Thank you. Strauss with of We'll go next line to the Barclays.

Bradley Barton

you much hitting Scott on like light, Bell, off morning, the on and David. been added and the quarter $X.X little how Bell’s good ramp in might can here Hi, just a the going is Frank. Barton quarter Quickly looks billion? talk have how Brad FLRAA for and starting to This from about

Frank Connor

FLRAA FLRAA still expect quickly certainly had able with through talent lot ramp that think and reasonably because is engineering to a I engineering that ramping. we risk the them pretty we've We’ve Look, had a lot in is Sure. going Bell reduction added that of resource the of line carrier. where through CDR design, programs been we we The be. program are retained

So, team I’d really the say well. is ramping

goes of to great working aircraft, ramping a the to the been it program. so is out about such has status as needed for industrial contracts large flight as subcontractors They’ve out through major our I award to ramping industrial lead army the program get us support huge quickly which the battle a base. materials part The authorizations critical we program there imagine obviously, that can authorized long to is the

we guide her as this dollar So, where with there, up things as lot program through run but sort by just and offices that end program out that's very I think the of retained year about the ramping like growth year feel in is certainly comfortable their program, of JDox up terms part that that, ramping a that’s [ph] Obviously I XXXX, government the $X years we program. it’s we're few And going think to million is a next of year frankly it be, -- ramp way we a will the we still the revenue. but to to The probably that on expect provided is how exactly $XXX the a rapidly of they where look, think far revenues which very in up. of drives and $XXX to million go right? that the we

Bradley Barton

a out in some interest about And in been reports there. properties has Okay. the potential press then just there some follow-up,

the up? Just how could shaping a you talk see wondering bit you portfolio little if

Scott Donnelly

provide at of on rumors We won't in this point. out commentary probably that there terms activity M&A are any various

Bradley Barton

time. thanks the right, All for

Scott Donnelly

Sure.

Operator

with Thank line Poponak of you. Noah We'll go the Goldman to next Sachs.

Noah Poponak

morning, good Hi, everyone.

Scott Donnelly

Noah. Hi,

Frank Connor

Noah. Hi,

Noah Poponak

The than while I'm in aviation I levels margin is If higher despite highest mid-teens. the number of long-term back, a your performance more the the the kind think, And a one in that framework. incremental, I that's -- little and add is cited. of that's guess I you

guess, chain as citing about won't won't think forever. but also that where time, supply be obviously and I margin And you're last labor so solved the goes inefficiencies I immediately, over

reasonable it next of quarter late of incremental into is as decade? to for think for an baseline go the adjusted kind can plus margin the in a you So the middle the that about where year

Scott Donnelly

middle not guide ready just probably the yet, I'm into Well, decade, of to the Noah.

Noah Poponak

a now. have you pretty Well, that business big backlog in

Scott Donnelly

good. again, look, where into avoid of is would making by was there's we're than other in is But part, supply are over the think and we to XXXX and I abate is that and somewhat we're inflation I mean, as we'll stage growth look think good doing certainly look, through way much at looking XX% I the Well, think be this too of XX%, time. be just products. certainly it's we'll to to marketplace. going we margins to will I around gross of numbers this tracking constrained also that there's baked sort be demand think and going sure the The a the I obviously long-term, into some to I beyond. about the in But margin conversion looking the game. future in hope guiding you're what out working probably which right, the challenges, terms are at guys, very mean, that's

that's the place talked good about of again, industry to be whole the running this industry now substantial health a running think before with for we a substantial should and with backlog, and we've I backlog, are be. a

So...

Noah Poponak

expect correct think grow In your the -- I what's reasonable hitting number I widening. price in near-term, like your would backlog bottom if of wrong. it the that be number inflation both it net P&L top the then to is better because is to if think of seem pricing now, is the that than inflation end still me would and that's And decelerating, although

Scott Donnelly

into The about going is certainly good we inflationary Well, but there. inflationary feel is still of inflation rate the that's pressures. coming pricing look, down, I seeing think are we backlog, do out but pressure still the there

Frank Connor

with our Yes. Remember, of price a some we and feel we responding inflation, of appropriate of nice to created are about But in good a pricing the have where associated did is so those some some just longer-term is we more supply in inputs. but environment, but inflation. flowing the there contracts, there lagging and effect market lag very any contracts job impact net a we on cost of still demand

Noah Poponak

on in some that fast Okay. increase decelerating price, is the of just is it or price this of it, needs And maybe the your not slow kind at normalization just you it with so change last change piece point? rate holding your the and did market in of rate to

Scott Donnelly

this in derivative is still the feel have working know. point, run I good probably on getting of price to price go market. don’t we're detail, but a how price quite suffice know. that I level I but that not won't demand level, We about say, and don't that first into at our

Noah Poponak

right, appreciate I you. it. All Thank

Operator

Vertical We'll the line Stallard to Robert go with next of Research.

Robert Stallard

Good so Thanks much. morning.

Frank Connor

morning. Good

Scott Donnelly

Good morning.

Robert Stallard

margin. this there going see How this U.S. both good on the pretty a do and line is on just that the And still sustainable sign in a as consumer top holding is quarter industrials, resilient? think forward? Scott, you do the there, you

Scott Donnelly

nice think encouraging good is and that. sure, I on as Oh, look, do the think of mean to volumes converting going every kind Robert. see We a the sign those still recovery job right? I consumer reasonable. of still continue there, it's turf guys and Kautex automotive guys yes, that hanging high-end demand things and did think for about up worry so I I a I I there, we all mean golf it's products. to a mean little mean, but see in across consumer, -- I and have bit strong they're pretty geography been --

is businesses. know, like lot is seasonality second quarter. as usually we a Now stronger there a you of a things of autumn, certain summer do that, In and shutdowns these so quarter

has bit that. quarter of of But been terms businesses. doing little lighter our and on on job the are a nice executing thing, usually the is a think in the look, I environment whole revenue those net Third teams of improving, demand

Robert Stallard

Yes. Frank, you. question technical then for a And

$X.XX, of idea guide so can within You give operations? that's raised EPS us where you the coming by from some the

Frank Connor

it just half reflects kind mean that we obviously the and I first earnings of strong Yes. reported.

little of the year. other in of So but things, kind in good just there and the first a reflects there's some it count the of a continuing second half solid bit year for share half execution and

coming I probably Scott thought little is that and a than line relative to As said, there's execution businesses. across standpoint going we think solid bit a kind our is aviation overall of probably at first top the from guide, industrial stronger but volume to had be of in -- light

Robert Stallard

so That’s great. much. Thanks

Operator

Thank you. of next George with Shapiro Research. Shapiro We'll line the to go

George Shapiro

we or quarter? are a still seem should Good not that think XXX morning good be maybe or numbers. each you to do XXX do something deliveries -- Scott, couple that we we call and we missing given

Scott Donnelly

Yes.

be the think don't lighter to in is we number it's originally going to a little XXX. had think bit I going so than be I George there,

I said, think is I execution strong. As their

little than I trying into to top to get the be on do we bit move year think with are a be lighter where it's what be, going line just by, again, we the contribution little top to on a but them but sales the will I we'll guided that that aircraft are aircraft think to XXXX margins bit happen, going still going and the earnings originally to are those line. out obviously to driven and lighter expected be

George Shapiro

quarter was hasn't particularly will Florida margin margins the in this built that And yet, still fully quarters? strong good, assuming subsequent guide at weaken because so Bell, is

Scott Donnelly

right standpoint. where tracking Look, think is I Bell look, from we expected a on guide

is execution Obviously, helps So in overhead business, absorbs a production top side we're of And of in the profitability coming FLRAA the the on seeing lot of the a clearly, level line. nice lot in still good driving maintain of terms things. which it of other as lines. about number had, But we're post and the don't to as as line absolute going we with number HX product we've the still, of we that's a talked much think, we much what very have but VXX, in some in I production guided.

George Shapiro

And it follow-up quarter like I point, I on then although strong, looked, wasn't even I obviously there. and one the just was Industrial, back that Kautex the mean went QX was and same mean, the since at XXXX particularly that is it probably- best business of

can comment could- like guide I quarter. certainly on anymore? billion margin would this mean what for the $X.X look based the would year sales So, and be would the it it the you margin was could you here seem be like

a that? comment more bit on could you if little So

Scott Donnelly

do a we I bit George think on as aviation line. the I probably look, light look, Yes, little is have said, revenue

happy part on on, of that's And going the at think revenue that guidance to with so on think level, little will the side. year. conversion will net we through bit factored give again, certainly probably year. we're the our I bit raise us how upside the I of the offset margin, a industrial industrial on think there's just as upside to that's stronger go bit little what's the revenue but line a into the of little the on on margins, that a EPS I be do

in again, And demand auto the strong side. it's recovering

automotive You turf these good markets manufacturing, and don't golf us and that's pretty much see are and drag at staying as on Kautex, robust. for and

think see part some will our nice and that's year. incorporated here, we'll about it on think Op, in certainly way do offset kind increase raise I of of with there, that's for we So upside that in the the revenue the mostly bring some

George Shapiro

Okay, thanks very much.

Operator

line of Myles Walton to We'll with go Wolfe next Research. the

Louis Raffetto

Lou Hi, you have you. for for Miles on Raffetto

Scott Donnelly

Good morning.

Louis Raffetto

Aviation, guess, on point more ongoing the think pricing this of the disruption, think within the you overcome little of So the kind side? overcome than bit of I I with will or what sort negative performance but benefit you at a that covered sort do the

Scott Donnelly

Well, of the -- inflation I so to you of even our look of inefficiencies our enough the some ongoing by some when still I pricing right is now right? supply driven challenges mean net stuff. it of mean in is terms overcome is, at

we've we'll into So trend expect as and here go . to see continue I had a the while, I think that for we future. that's that a

Louis Raffetto

Okay. And is right I think the to then will that year? think XXX a so or you than about maybe mentioned, higher be number bit you little for the

Scott Donnelly

in we specific I not where But about performance it's-- right don't light the number. I top . going or again, -- should we probably couple dollars I a guide hundred to think more line. million way But think guided. We're mean, is think from being be a the less by a we'll of to a standpoint, margin standpoint,

Louis Raffetto

very you much. thank Okay,

Scott Donnelly

Sure.

Operator

of the Thank Rumohr We'll to Cowen. Cai with you. next go TD line Von

Cai Von Rumohr

so Thanks, much. Yes.

you what would big like bolster Scott, and growing you're the A&D when you not with you'd a to player, number So Strategically, would those A&D, like guys. A&D how you're of OMB, said sorts niche buying a think your or increase other also opportunity obviously, is Lockheed, look yet at a business, not you GD your to at I really with business consider your strategic FLRAA, question, up of get? And business? to some And programs. you things

Scott Donnelly

here investments the a a be that taking our we've Well, approach think question, in existing we And growth. lot we'd businesses obviously, we're is it's is driving like to bigger. that made I -- Cai. good that Look of

that referenced new other those platforms, names. all aviation, if to we've look So continue you in made the you I couple think investments and make of at a

head-to-head huge go That's Look, growth FLRAA and organic I going a the a lot think investment can drive and that and a win, shows in we to obviously, of drive on we've basis ton of a program-by-program over made years. growth.

there you that Corps, the I XMXX as that ARV or are drivers. to the what's talked when significant potentially things think look at growth referred around some Marine out there's and now systems, with we things OMF of

some I biggest business going names win We're guys think in the against of to head the are the head we and can that with them.

to want drive so continues that side sure be right have along growth. our makes an at investments right want a if do that. our there's happy the right? making can So I've drive organic -- you cause continue is we along, to extension always that sense that felt focus we're that organic really can standpoint, to absolutely. and do so opportunity something the make But that look comes the got to acquisitions, a that on you right to a [ph] we're So comes don't making if I will we we've And think strategy investments good to deal, the from growth we

Cai Von Rumohr

do there would you at whatever? be would you at company when holding and this complementary good be you perspective, you look sort business from think would make a stronger or a to specific sets look that are what it currently in So you of helicopters things, do skill that a player

Scott Donnelly

A&D that. just of there standpoint, at that's our that technological that specifically diversified think, A&D I think look I space, in is it's be a I looking more other Well, company. it's certainly would do activity A&D. help think target bring from some probably that kind in you in a providing things technology capabilities, that's would bring capability the the see you much see you out more space. I Cai, think But diversify and us complementary that something part, well-rounded, targets look, where where but where in in large in there capability strength would helicopter of I'd standpoint surprised. now, we space. likely you synergistic, I don't government A&D think right don't I know primarily the terms don't And

Cai Von Rumohr

you thank very much. Great,

Operator

will of Thank Morgan from come question you. last Liwag Stanley. And our with line the Kristine

Kristine Liwag

Great, to thanks. the uncertainty interest jets macroeconomic much. Scott, business with I surprise increasing bears the ultimately demand a aviation for general and and mean, be pricing rates, pretty for robust, the and continue

undersupplied you is driving sustained think this market be? to you think do what continues So how and demand do the

Scott Donnelly

and do aircraft and into that private is market to things particular by fact that right? a look, experience. what environment can't you using is using who It are had Well, think there experienced driven all the allows great I time I people-- have just come the have people you're mean commercial if transportation. you demand about, machines, aviation this a started do

a not they're again, people tool. on of to to and anywhere the is out more and ability COVID this an got people your in that something I to the productivity, past, that get great turning the if expeditious the by to lot in way anywhere from time be is this So efficiency, affected market had the more and a think, and exposed you’re

so this continues And a in what marketplace. the think I fuel of lot to that’s demand

So we that's very it's obviously, price a just very environment. products demand think products, of we're of very, know, aviation. just a and range of you And as why performance. seeing broad offer I And a range across a points and strong company lot our not it's broad fundamentally but . our across general

Kristine Liwag

that had robust. Columbus large cabin, continues point, the light, that mean an go portfolio, move moment to even be reintroduce about, is to airplane your portfolio when the look appetite up and larger market And jets? and there at or and larger size come of the we Hemisphere this of the didn't large you what's the bigger? to medium portfolio, the I cabin right a Cessna but I when cabin that at you out Yes. At to also look guess the

Scott Donnelly

platform. No, I you programs ended at our up doing don't have Look, those for look when we we stretch and of the reasons programs. did We as the technical and top there not time at think one we is. know did point, end

now, part in were is well-served market that is market. faced think a with, very particularly larger of of kind choice I we go the which you that as market, the

of So think on all R&D off better we're energy to of up sort in Longitude. I midsize investments focusing our super and the our in that our

Denali to We've been to is lot a which lot right of portfolio. is in development, great platforms and a our programs, you as just still then investments. be to those us, for of continue yes across we homerun make know, a all track doing, that's upgrades the going aircraft, think end of of that's ton our market, this growth the that a past a spot great previous sweet had will the and a right mean, be the in we've well drive and I I announced. us. with for record of market in really that's received And segment

that electric across think where R&D this to Cessna very XXXs and I place be course, in -- to a good we're and focus I little now, we're Pipistrel making up going that's efforts. -- focused that's pretty on our of the investments eAviation think everything us Longitude. So, is and those our from and space But with for through

Kristine Liwag

Great, thanks Scott.

Operator

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Textron (TXT) 27 Jul 232023 Q2 Earnings call transcript