Textron Inc.

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. If you wish to ask a question, please press 1 then 0 on your telephone keypad. You may withdraw your question at any time by repeating the 1 then 0 command. If you should require assistance during the call, please press star then 0. As a reminder, today's conference is being recorded. I would now like to turn the conference over to your host, Mr. Eric Salinger, Vice President of Investor Relations. Please go ahead, sir.

Thanks, Bradley, and good morning, everyone. Before we begin, I'd like to mention we will be discussing future estimates and expectations during our call today. These forward-looking statements are subject to various risk factors, which are detailed in our SEC filings and also in today's press release. On the call today, we have Scott Donnelly, Textron's Chairman and CEO, and Frank Conner, our Chief Financial Officer. Our earnings call presentation can be found in the investor relations section of our website. Revenues in the quarter were $3 billion, up $23 million from last year's first quarter. Segment profit in the quarter was $259 million, down $18 million from the first quarter of 2022. During this year's first quarter, we reported net income of $0.92 per share. Adjusted net income, a non-GAAP measure, was $1.05 per share compared to $0.97 per share in last year's first quarter. Manufacturing cash flow before pension contributions, a non-GAAP measure, totaled $104 million in the quarter, compared to $209 million in the first quarter of 2022. With that, I'll turn the call over to Scott.

Thanks, Eric, and good morning, everyone. We had a solid first quarter. Revenues up aviation, industrial, and systems, largely offset by lower revenues at Bell, consistent with our expectations. At Aviation, in the quarter, we delivered 35 jets, down from 39 last year, and 34 commercial turboprops, up from 31 in last year's first quarter. Aviation continued to see solid demand across jet and turboprop products. Backlog grew $136 million, ending the first quarter at $6.5 billion. In the quarter, Aviation received an initial award on the U.S. Navy Multi-Engine Training System contract for 10 King Air 260 aircraft and associated support equipment. This contract includes options for up to 64 aircraft with deliveries in 2024 through 2026. Textron Aviation's fleet utilization remains strong in the quarter, contributing to aftermarket revenue growth of 9% as compared to last year's first quarter. Moving to Bell, we announced the appointment of Lisa Atherton as the CEO, succeeding Mitch Snyder, who will retire at the end of April. Lisa returned to Bell in January after more than five years as the President and CEO of Textron Systems. She's done an outstanding job building strong teams at Bell and Textron Systems in her 16 years for the company, and has earned the confidence of our military customers. I want to thank Mitch for his leadership. During his tenure, he oversaw significant wins at Bell's military business, along with development of new technologies and product innovations. Earlier this month, the FLORA contract protest was denied, and the US Army subsequently canceled the stop work order, allowing work on the contract to proceed. On the commercial side of Bell, we delivered 22 helicopters down from 25 in last year's first quarter. During the quarter, we saw solid customer activity across all our commercial products and in markets, including an order from the Polish National Police for four additional F-407s, which will expand their fleet to seven aircraft. At Textron Systems, we saw good margin performance on higher revenues across our programs. During the quarter, Systems' aerosol and hybrid quad was among five competing unmanned aerial systems that were down-selected for Increment 2 of the Army's future tactical unmanned aircraft system competition. Also during the quarter, systems delivered craft 105 of the U.S. Navy ship-to-shore connector program, the seventh craft delivered to the Navy. There are now two craft remaining to be delivered under the detailed design and construction contract. Moving to industrial, we saw higher revenues in the quarter, driven by higher volume, both at Specialized Vehicles and Caltex. Specialized Vehicles, the golf business, continues to see strong demand and pricing for its elite lithium product. At Caltex, we announced the first pentatonic order from an automotive OEM for a thermoplastic composite underbody battery protection skid plates. Skid plates are part of the company's new pentatonic battery system product line, supporting battery electric vehicle production. Moving to E-Aviation, during the quarter, we announced two new U.S. distribution partners on the East Coast to further expand Pipistrel's existing distribution network. Also in the quarter, we finalized a group with Mesa Airlines for 25 Alpha Trainer aircraft and an option for 75 additional aircraft. At Sun and Fun during the quarter, we displayed the Pipistrel Panthera and Bellis Electro aircraft, receiving significant customer interest in both models. With that, I'll turn the call over to Frank.