Draper To Retire As Textron Aviation CEO; Rohloff Named Successor

Textron Systems Corp. (TXT) received a $231.5 million contract modification from the U.S. Department of War to build two LCAC-100-class Ship to Shore Connector Landing Craft Air Cushion vessels, modifying a 2023 agreement. Work is split across multiple U.S. sites and the UK, with completion expected by May 24, 2032. Naval Sea Systems Command is the contracting activity.

Business jet makers reported strong results. General Dynamics’ Gulfstream posted a “special quarter” with Aerospace revenue up 15% to $3.5bn, margins up to 14.5%, and $5.3bn in new orders. Bombardier Q2 revenue rose 6% to $2.15bn, adjusted net income to $257m, free cash flow to $228m, backlog to $21.8bn. Dassault and Textron also reported figures.

By Aatreyee Dasgupta July 28 (Reuters) - Textron beat second-quarter profit and revenue estimates on Tuesday, owing to higher aircraft pricing, but productivity issues at its aviation unit weighed on jet deliveries, sending its shares down more than 6% in morning trading. The business jet maker's larger aviation segment, which manufactures the Cessna jet and Beechcraft aircraft, delivered nine jets fewer than a year ago.

Textron CEO Lisa Atherton said about 50% of Textron Aviation’s workforce joined in the past five years, up from under 30% in 2019, reflecting post-pandemic labor shortages. On its Q2 earnings call, Textron reported $1.5B revenue, $165M profit, and 11.2% margin, citing inefficiencies. The company aims to raise jet output to about 200 annually by late 2027, investing in capacity, process and suppliers, with an $8B backlog.

Textron Aviation reported Q2 revenue of $1.5bn, up 1% y/y, as jet deliveries fell to 40 from 49 while commercial turboprops rose to 44 from 34. Segment profit was $165m, down 3%, due to manufacturing inefficiencies and lower volume. Backlog held at $8bn. Management guided similar Q3 revenue profile and margin improvement in Q4, and initiated a sale process for its Industrial segment.

Textron said it will self-fund some MV-75 tiltrotor program activities while awaiting a U.S. Army above-threshold reprogramming request to Congress. CEO Lisa Atherton expects approval could slip until September. CFO Dave Rosenberg said failure to receive reprogramming could cut full-year results by 20-30 cents per share and reduce cash by $150-250 million.