Textron, Inc. (NYSE:TXT) Q3 2023 Earnings Conference Call October 26, 2023 8:00 AM ET

Company Participants

Eric Salander - VP, IR & Treasurer

Scott Donnelly - Chairman, President & CEO

Frank Connor - EVP & CFO

Conference Call Participants

Sheila Kahyaoglu - Jefferies

David Strauss - Barclays Bank

Noah Poponak - Goldman Sachs Group

Douglas Harned - Sanford C. Bernstein & Co.

George Shapiro - Shapiro Research

Kristine Liwag - Morgan Stanley

Jason Gursky - Citigroup

Myles Walton - Wolfe Research

Ronald Epstein - Bank of America Merrill Lynch

Peter Skibitski - Olympic Global

Cai von Rumohr - TD Cowen

Robert Stallard - Vertical Research Partners

Peter Arment - Robert W. Baird & Co.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Q3 2023 Textron Earnings Release Call. [Operator Instructions].

I would now like to turn the conference over to Eric Salander, Vice President of Investor Relations. Please go ahead.

Eric Salander

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 Connor, 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 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 totaled $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.

Scott Donnelly

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 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.