Textron Inc.

Good morning, ladies and gentlemen, and welcome to the Textron third quarter 2025 earnings release. At this time, all participants are in a listen-only mode. You will have the opportunity to ask questions during the question and answer portion of this call. You may register for a question at any time by pressing star followed by one on your telephone keypad. You may withdraw yourself from the queue by pressing star followed by one again. If anyone needs assistance at any time during the conference, please press the star followed by zero. I would now like to turn the conference over to Scott Hegstrom. Please go ahead, sir.

Scott Hegstrom Thanks, Rob, 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, TechFunds 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 $3.6 billion, up 5% or $175 million from last year's third quarter. Segment profit in the quarter was $357 million, up 26% or $73 million from the third quarter of 2024. Adjusted income from continuing operations was $1.55 per share compared to $1.40 per share in last year's third quarter. Manufacturing cash flow before pension contributions totaled $281 million in the quarter compared to $147 million in last year's third quarter. With that, I'll turn the call over to Scott.

Thanks, Scott. Good morning, everybody. Let me just start with yesterday's announcement. I'm sure you've all read by now that yesterday we elected Lisa Atherton to become our new president and CEO, effective at the beginning of January. At that point in time, I'll transition to be the executive chair of This is the result of a long, thorough process that we worked with on the board. I think Lisa, who's been with our company for about 18 years, is an outstanding leader. She's had a number of really important roles in the company over the years. She was the president and CEO of our Textron Systems business for about five years. Most recently, obviously, she's the president and CEO of Bell, where she's been very involved in both the capture, the win, and now the execution of the ramp on MV75. She's a fabulous leader. She knows the teams. She's surrounded by a great team at the business level across the company. So we're proud of the fact that we had a great internal promotion, and I think she'll just do a fabulous job leading the company into the future. So with that, let me go ahead and talk about the quarter. Overall, revenue was higher driven by strong growth across our aerospace and defense businesses. Aviation had higher segment revenues and profit compared to the third quarter of last year. We delivered 42 jets and 39 commercial turboprops compared to 41 jets and 25 commercial turboprops in last year's third quarter. Textile aviation's fleet utilization remained strong in the quarter, contributing to an aftermarket revenue growth of 5% as compared to last year's third quarter. Aviation backlog into the third quarter is $7.7 billion as demand remains strong. Earlier this month, Textile Aviation completed the certification of the CJ-3 Gen-2 and autothrottles on the M-2 Gen-2. Also this month, the Citation Ascend made its debut as it landed in Las Vegas for the NBAA exhibition. We are nearing completion of the certification process and continue to expect deliveries this quarter. During the quarter, the Latitude received FAA certification for new features of the Garmin 5000 avionics suite. These features include synthetic vision guidance systems and improved approach capabilities down to 150 feet and a new taxiway routing feature. We continue to implement Starlink high-speed internet connectivity onto our aircraft, With the recent announcement of the Latitude and Longitude Supplemental Type Certifications, Starlink is now available on 14 platforms across aviation's product portfolio. On the defense side, aviation announced a partnership with Leonardo to launch the Beechcraft M346N as a solution for the United States Navy Undergraduate Jet Training System competition. Throughout the quarter, aviation participated in a nationwide demo tour to highlight the capabilities of this aircraft. At Bell, increased revenues were driven by higher military volume, reflecting the continued ramp and acceleration of the MD-75 program. In the quarter, Bell exceeded their 90% engineering release milestone, enabling continued fabrication and procurement activity for the prototype aircraft. Fabrication and assembly work on the program is continuing across numerous sites, including wing assembly at our Amarillo, Texas site, fuselage assembly at our Wichita, Kansas site, in addition to ongoing fabrication of critical rotor and drive system components in our Fort Worth operations. On the commercial side of Bell, we delivered 30 helicopters down from 44 in last year's third quarter. Bell continues to see strong demand across its commercial product portfolio. Bell announced a purchase agreement on global medical response for seven 429s and an option for eight additional helicopters with deliveries expected to begin in 2026. Moving to systems, revenues were up as compared to last year. During the quarter, systems received new contract awards for several programs, leading to an increase in backlog of about $1 billion in the quarters. These awards included ATAC awards for both the United States Navy and United States Marine Corps, a new contract award for the U.S. Army to provide 65 mobile strike force vehicles in support of the Ukraine Security Assistance Initiative, and increased quantities for the ship-to-shore connector program. In the weapons business, systems completed delivery of the first production lot of XM-204 anti-vehicle terrain-shaping systems to the U.S. Army in support of operations in Europe. Moving to industrial, we saw a low of revenues reflecting the divestiture of the power sports business. At eAviation, we continued to make progress on several of our core development efforts. The team completed the hover flight test envelope for the Nuva V300 and set the stage for Air Vehicle 2 to enter the flight test program. As disclosed in our 8K filing, Textron will be eliminating the Textron eAviation segment as a separate reporting segment, realigning the eAviation business activities across Textron eAviation and Textron systems to leverage our existing sales and business development capabilities. This change will be effective at the beginning of fiscal year 2026. With that, I'll turn the call over to David.