Slide 1: Q4 2023 Earnings Call Presentation
Q4 2023 Earnings Call Presentation January 24th, 2024 The data in this package should be read in conjunction with the Textron earnings release and accompanying tables. © 2023 TEXTRON INC. 1
Slide 2: Forward-looking Information
Forward-looking Information Certain statements in this package and other oral and written statements made by Textron from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or othe
Slide 3: Key Data − Q4 2023
Key Data − Q4 2023 Q4 2023 Q4 2022 Revenues $ 3.9B $ 3.6B Segment Profit (1) $ 384M $ 306M EPS $ 1.01 $ 1.07 Adjusted EPS (1) $ 1.60 $ 1.23 Manufacturing Cash Flow $ 380M $ 368M Before Pension Contributions (1) Pension Contributions $ 11M $ 13M (1) Segment Profit, Adjusted EPS and Manufacturing cash
Slide 4: Key Data − Full Year 2023
Key Data − Full Year 2023 Full-Year 2023 Full-Year 2022 Revenues $ 13.7B $ 12.9B Segment Profit (1) $ 1,327M $ 1,136M EPS $ 4.57 $ 4.01 Adjusted EPS (1) $ 5.59 $ 4.45 Manufacturing Cash Flow $ 931M $ 1,178M Before Pension Contributions (1) Pension Contributions $ 45M $ 49M (1) Segment Profit, Adjust
Slide 5: Q4 2023 Revenue Growth
Q4 2023 Revenue Growth Organic Revenue Acquisition Organic FX Impact Growth Growth Impact Growth Un(Fav) Before FX Textron Aviation (3.7%) - (3.7%) - (3.7%) Bell 31.3% - 31.3% - 31.3% Textron Systems - - - - - Industrial 6.0% - 6.0% (0.9%) 5.1% Textron eAviation 66.7% - 66.7% - 66.7% Manufacturing S
Slide 6: Textron Consolidated Net Debt
Textron Consolidated Net Debt ($ amounts in millions) Year-End 2023 Year-End 2022 Cash $ 2,181 $ 2,035 Finance Group Debt $ 348 $ 375 TXT Mfg. Group Debt 3,526 3,182 Total Debt $ 3,874 $ 3,557 Net Debt $ 1,693 $ 1,522 Textron Inc. Q4 2023 Earnings Call Presentation; January 24, 2024 © 2023 TEXTRON I
Slide 7: Outlook – Full Year 2024
Outlook – Full Year 2024 2024 Outlook Adjusted Earnings Per Share $ 6.20 - $ 6.40 Manufacturing Cash Flow $ 0.9B - $ 1.0B Before Pension Contributions (1) Adjusted Earnings Per share and Manufacturing cash flow before pension contributions are non-GAAP measures that are defined and reconciled to GAA
Slide 8: Segment Outlook – Full Year 2024
Segment Outlook – Full Year 2024 2024E 2023 Actuals Segment Segment Revenue Segment Profitability Revenue Profitability Textron Aviation ~$ 6.0B ~12.0% - 13.0% $ 5.4B 12.1% Bell ~$ 3.5B ~9.5% - 10.5% $ 3.1B 10.2% Textron Systems ~$ 1.25B ~11.0% - 12.0% $ 1.2B 11.9% Industrial ~$ 3.8B ~6.0% - 7.0% $
Slide 9: Outlook – Full Year 2024
Outlook – Full Year 2024 ($ amounts in millions) 2024E 2023 Corporate Expenses & Other, net ~$ 160 $ 143 Interest Expense, net for Manufacturing Group ~$ 90 $ 62 LIFO Inventory Provision ~$ 110 $ 107 Intangible Asset Amortization ~$ 35 $ 39 Non-service Pension Income ~$ 265 $ 237 Income Tax Rate (fr
Slide 10: Outlook – Full Year 2024
Outlook – Full Year 2024 ($ amounts in millions) 2024E 2023 Research & Development ~$ 550 $ 570 % of Mfg Revenues 3.8% 4.2% CapEx ~$ 425 $ 402 Depreciation ~$ 350 $ 353 Textron Inc. Q4 2023 Earnings Call Presentation; January 24, 2024 © 2023 TEXTRON INC. 10
Slide 11: Pension Outlook – Full Year 2024
Pension Outlook – Full Year 2024 2024E 2023 Discount Rates – U.S. Plans 5.25% 5.55% Assumed Long-Term Rate of 7.25% 7.25% Return Service Pension Cost/(Income) (1) ~$ 80M $ 80M Non-Service Pension Cost/(Income) ~ (265M) (237M) Total Pension Cost/(Income) ~$ (185M) $ (157M) Pension Contributions ~$ 50
Slide 12: Adjusted EBITDA
Adjusted EBITDA Full-Year 2024 Full-Year 2023 ($ amounts in millions) Income Before Income Taxes ~ $ 1,315 $ 1,087 Add: Interest Expense, net for Manufacturing group 90 62 Depreciation Expense 350 353 Intangible Asset Amortization 35 39 LIFO Inventory Provision 110 107 Special Charges - 126 Adjusted
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures. These non-GAAP financial measures exclude certain significant items that may not be indicative of, or a
Slide 14: © 2023 TEXTRON INC.
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