Textron Inc.

At this time, all participants 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. If you should require assistance during the call, please press star, then 0. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Vice President, Investor Relations, Mr. Dave Rosenberg. Please go ahead.

Thanks, Greg, 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 $3.5 billion, up from $3.4 billion in last year's second quarter. During this year's second quarter, adjusted income from continuing operations was $1.54 per share, compared to $1.46 per share in last year's second quarter. Manufacturing cash flow before pension contributions totaled $320 million in the quarter, compared to $242 million in the second quarter of 2023. With that, I'll turn the call over to Scott.

Thanks, David. Good morning, everyone. Aviation has higher segment revenues of $1.5 billion, generating a profit of $195 million, up $24 million from the second quarter of 2023. We delivered 44 commercial turboprops up from 37 last year and 42 jets down from 44 in last year's second quarter, while aftermarket revenues grew 13%. Aviation continued to see strong demand across all product lines. Backlog ended the quarter at $7.5 billion, up $118 million from the first quarter of this year. In the quarter, aviation began deliveries of the King Air 260 under the Multi-Engine Training Systems Contract for the U.S. Navy. To date, we've been awarded 35 aircraft, with a possible 64 on the program. Also during the quarter, aviation certified a third variant of the Cessna SkyCourier. The combi version allows operators to transport passengers and cargo simultaneously. Combined with the previously certified passenger and cargo variants, this latest variant continues to demonstrate the versatility of the aircraft to our customers. In June, aviation completed the first flight of a Cessna Citation Ascend. The aircraft is the first conforming production flight test aircraft and represents a significant milestone for the program. To date, we have completed over 400 hours of flight testing. At Bell, revenues and profit in the quarter were up as compared to the second quarter last year. On the commercial side, Bell delivered 32 helicopters, down from 35 in last year's second quarter. Moving to military, Bell completed the FLARA preliminary design review, while also continuing to release engineering drawings and place orders for long-leaning material as the program continues to ramp. In the quarter, Bell was down-selected as one of two companies for the next phase of DARPA's Speed and Runway Independent Technologies X-Plane program to create a prototype high-speed vertical takeoff and landing aircraft for the U.S. military. This program builds on Bell's success as the leader in tiltrotor technology. Textron Systems realized higher revenues while continuing to pursue new program opportunities in the quarter. Systems was awarded options three and four for the FTOAS program in the second quarter. This award includes the delivery of an aerosol and hybrid quad system to the U.S. Army for test and evaluation. As part of the Army's robotic combat vehicle competition, we announced a collaboration with Kodiak Robotics. Kodiak will integrate its industry-leading autonomous system into a Textron Systems purpose-built uncrewed military vehicle to demonstrate the autonomous operations later in 2024. Moving to industrial, we experienced lower revenues and operating profit in the quarter. As expected, we continue to see softer demand in our consumer and automotive end markets. We continue to execute on our cost reduction plan to position the cost structure for a lower-volume environment. As a result, we saw a sequential margin of improvement in Q2 and expect to see this improvement in the second half of 2024. Moving to E-Aviation, during the quarter, we completed the acquisition of Amazilia Aerospace. The Amazilia team has expertise in digital flight controls, flight guidance, and vehicle management systems for manned and unmanned aircraft. We plan on integrating their products and capabilities into our new platforms, such as the Nuva and Surveyor. The maneuver program reached a significant milestone with the completion of Vehicle 1 assembly. The prototype vehicle has entered ground testing, which supports anticipated hover flight later this year. With that, I'll turn the call over to Frank.