Textron Inc.

Hello everyone and welcome to the Textron second quarter 2025 earnings call. My name is Emily and I'll be moderating your call today. After the prepared remarks, you will have the opportunity to ask any questions, which you can do so by pressing start followed by the number one on your telephone keypad. I will now hand over to Scott Hegstrom, vice president of investor relations and treasurer to begin. Please go ahead.

Thanks Emily and good morning everyone. Before we begin, I'd like to mention that 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 David Rosenberg, our chief financial officer. Our earnings call presentation can be found in the investor relations section of our website. Revenues in the quarter were 3.7 billion, up .4% or 189 million from last year's second quarter. Second profit in the quarter was 346 million, up 3 million from the second quarter of 2024. Injusted income from continuing operations was $1.55 per share compared to $1.54 per share in last year's second quarter. Manufacturing cash flow before pension contributions totaled 336 million in the quarter compared to 320 million in last year's second quarter. With that, I'll turn the call over to Scott.

Thanks Scott. And good morning everyone. Second quarter was a good quarter for Textron with revenue growth in both our commercial aircraft and helicopter businesses, as well as in Bell's flower program, which is now known as the MV75. Aviation had segment revenues of 1.5 billion, up .8% from the second quarter of 2024, reflecting higher sales for both aircraft and aftermarket. And the factory operations continue to improve as we ramp production. We delivered 49 jets and 34 commercial turbo props compared to 42 jets, and 44 commercial props in last year's second quarter. Aviation continue to see solid demand across all products with backlog and in the quarter at 7.85 billion. In the quarter, aviation announced the purchase agreement with a customer in Mexico for four citation jets and an option for eight additional jets with deliveries expected to begin in 2026. Also during the quarter, the skycare hit a number of important milestones, including the first delivery in South America, the first air medical order, which was also our first order in Africa. And as we marked our fifth anniversary of the first flight, on the new product front, we continue to make progress on certification for the M2 Gen2, sorry, M2 Gen2, CJ3 Gen2, and the Ascend, with deliveries of these aircraft expected to begin the second half of this year. The Bell revenues were up 222 million or 28% compared to last year's second quarter driven by growth in both the MV75 program and our commercial helicopter business. On the military side, the U S army announced its intention to accelerate the MV75 program and also announced that the 101st airborne will be the first division to operate the MV75. In the quarter, Bell delivered two MV75 virtual prototypes to the army, which are advanced simulators based on a digital twin of the MV75. These simulators will be used to support the training and development of tactics, techniques and procedures leveraging the tilt rotor, significant performance benefits in advance of fielding aircraft. We continue to have ongoing dialogue with the army on specifics related to the acceleration of the MV75 program. This includes acceleration of the development program, pull forward of initial over production and rapid fielding of units to the war fighter. Bell was recently down selected as a sole company for the next phase of DARPA speed and runway independent technologies, X plane program. During this next phase Bell will design, construct and perform ground testing of an X plane demonstrator. On the commercial side of the business revenues increased 73 million, primarily due to the mix of aircraft sold at Bell as Bell delivered 32 helicopters in both the second quarter of 25 and 24. During the quarter, Bell received an order for 12 Bell 412 EPXs from the Tunisian Air Force, with deliveries expected to begin in early 2027. In June, Bell signed a five year contract with United Auto Workers for its operations in Fort Worth, Texas. Moving to systems, revenues in the quarter were slightly lower as compared to last year, while segment profit margin was .5% up 170 basis points. Earlier this month, systems received a $354 million contract modification from the U S Navy to add three ship to shore connector craft. In addition, the ship shore connector program received 300 million through the recently enacted reconciliation bill. During the quarter, the U S army announced approval milestone B for the XM 30 program and transitioned the program to the engineering and manufacturing development phase. Also in the second quarter, systems sold the first tsunami aircraft, tsunami craft, the U S Navy, the tsunami is an incredible rapidly deployable autonomous unmanned surface vehicle. Moving to industrial, we saw lower revenues in the quarter compared to last year's second quarter, reflecting the impact of the disposition of Tectron specialized vehicles, power sports business and lower volume. At Caltech we recently received a Pentatonic award from a leading European automotive OEM for battery electric vehicle, composite lower battery housing unit. This marks the second OEM platform for Pentatonic. And this wind secures a major foothold on what is anticipated to become one of the leading global B EV platforms. So your profit margin was .4% up 180 basis points. Aviation, the new V 300, a long range large capacity hybrid electric VTOL unmanned aircraft, continue to slice test program and made its debut at the Paris air show in June. With that, I'll turn the call over to David.