Textron Inc.

Participant lines are in a listen-only mode. Later, we will conduct a question-and-answer session. If you would like to ask a question, please press 1, then 0. You may remove yourself from queue by repeating the same 1-0 command. As a reminder, this conference is being recorded. I would now like to turn the conference over to Eric Salander, Vice President of Investor Relations. Please go ahead.

Thanks, Leah, 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 $3.3 billion, up $265 million from last year's third quarter. Segment profit in the quarter was $332 million, up $60 million from the third quarter of 2022. During this year's third quarter, we reported income from continuing operations of $1.35 per share. Adjusted income from continuing operations, a non-GAAP measure, was $1.49 per share, compared to $1.15 per share in last year's third quarter. Manufacturing cash flow before pension contributions, a non-GAAP measure, total $205 million in the quarter, compared to $292 million in the third quarter of 2022. With that, I'll turn the call over to Scott. Thanks, Eric, and good morning, everyone.

The third quarter was a strong quarter for Textron, with revenues up at Aviation, Industrial, and Systems, while revenues were flat at Bell versus the prior year. At Aviation in the quarter, we delivered 39 jets, flat with last year, and 38 commercial turboprops, up from 33 in last year's third quarter. Aviation's solid demand across our jet and turboprop products resulted in our strongest order quarter of the year, with a 12% increase over the third quarter of 2022. Backlog grew $521 million, ending the third quarter at $7.4 billion. In the quarter, aviation announced a new fleet agreement with NetJets, extending our 40-plus year relationship and giving NetJets the option to purchase an additional 1,500 aircraft, including the Citation Latitude and Longitude, over the next 15 years. As part of this agreement, NetJets will also be the fleet launch customer for the newly announced Citation Ascend, which is expected to enter into service in 2025. Also in the quarter, Aviation received a special missions order for 17 King Air 360s to be used for flight inspection. Aviation also announced that Surf Air Mobility finalized its initial order for 20 Grand Caravans during the third quarter. On the new product front, Aviation wrapped up a successful NBAA show last week where we announced two new product upgrades, the Citation CJ3 Gen 2 and the Citation M2 Gen 2, continuing our strategy of modernizing our existing aircraft portfolio while also investing in clean sheet aircraft. Moving to Bell, overall revenues were flat in the quarter with improved margin performance. Bell had higher military revenues in the quarter, largely reflecting the continued ramp on the FLAR program. On the commercial side, Bell delivered 23 helicopters, down from 49 in last year's third quarter. The lower deliveries reflected manufacturing disruptions related to supply chain shortages. During the quarter, Iraq ordered 15 505 aircraft to replace their pilot trading fleet, continuing the success of the Bell 505 as a military trainer throughout the world. Textron Systems, we saw higher revenues and margins of the quarter. During the quarter, Systems Aerosol and Hybrid Quad was one of two competing unmanned aerial systems that were awarded the second option agreement for the Army's Future Tactical Unmanned Aircraft System, or FTOAS, program. Under the second option agreement, the two remaining competitors will work with the Army towards a critical design review, which includes establishing the final system design and initial product baseline. Also during the quarter, systems will be one of four competitors selected to build light robotic combat vehicle prototypes for the Army. Prototypes are expected to be delivered in 2024. Systems also expanded its aerosol and UAS operations with the U.S. Navy with an award of an additional three sea-based systems aboard littoral combat ships. Moving to industrial, we saw higher revenues in the quarter driven by higher volume in both specialized vehicles and Caltechs. In specialized vehicles, we continue to see strong demand in the fleet golf business. Within Caltechs, we saw increased volumes year over year driven by the recovery in the North American auto market. Moving to e-aviation, Pipistrel's Alpha Trainer continues to gain momentum with Mesa Air ordering 25 additional Alpha Trainer aircraft in the quarter for use in their pilot development program. Also, the first new prototype, our hybrid electric unmanned cargo VTOL aircraft, is currently undergoing systems integration and has completed the initial installation of the battery and motor systems. We expect the prototype to enter vehicle ground testing phases by the end of the year. With that, I'll turn the call over to Frank.