Textron Inc. (TXT) Q3 2022 Earnings Call Transcript

Textron Inc. (NYSE:TXT) Q3 2022 Earnings Conference Call October 27, 2022 8:00 AM ET

Company Participants

Eric Salander - Vice President of Investor Relations

Scott Donnelly - Chairman, President and Chief Executive Officer

Frank Connor - Executive Vice President and Chief Financial Officer

Conference Call Participants

Robert Stallard - Vertical Research Partners

David Strauss - Barclays

Sheila Kahyaoglu - Jefferies

Seth Seifman - JPMorgan

Peter Skibitski - Alembic Global

Noah Poponak - Goldman Sachs

Peter Arment - Baird

Cai von Rumohr - Cowen

Robert Spingarn - Melius Research

George Shapiro - Shapiro Research

Kristine Liwag - Morgan Stanley

Ronald Epstein - Bank of America Merrill Lynch

David Strauss - Barclays

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q3 2022 Textron Earnings Release Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] As a reminder, today's call is being recorded. And I would now like to turn the conference over to the Vice President of Investor Relations, Eric Salander. Please go ahead sir.

Eric Salander

Thanks, Brad, 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 $3.1 billion, up $88 million from last year's third quarter. Segment profit in the quarter was $299 million, up $20 million from the third quarter of 2021. Income from continuing operations for the quarter was $1.06 per share, compared to $0.85 per share on an adjusted basis in last year's third quarter.

Manufacturing cash flow before pension contributions totaled $292 million in the quarter, up $21 million from the third quarter of 2021. With that, I'll turn the call over to Scott.

Scott Donnelly

Thanks, Eric. And good morning, everyone. Overall, we had a solid quarter across our manufacturing businesses with higher net operating profit, cash generation as compared to last year's third quarter despite ongoing supply chain labor challenges. Aviation generated segment profit margins of 11.9% up from 8.3% in the third quarter 2021 on slightly lower revenues reflecting a favorable revenue mix with higher aftermarket volume and strong pricing net of inflation.