Textron forecasts 2025 profit below estimates; IAM strike dents Q4 jet deliveries

Textron

22/01/2025 13:02

Jan 22 (Reuters) - Textron forecast 2025 profit below
estimates on Wednesday, after missing quarterly revenue
expectations due to the impact of the September strike on its
aviation segment and demand softness in its industrial segment.
    Shares of the Providence, Rhode Island-based company were
down nearly 4% before the bell.
    On an adjusted basis, the company forecast 2025 profit to
range between $6.00 and $6.20 per share, compared with analysts'
estimates of $6.40 per share, according to LSEG-compiled data
    Work stoppage from the International Association of
Machinists and Aerospace Workers (IAM) union strike during the
previous quarter at its Wichita facility continued to impact
aircraft deliveries during this quarter.
    The Cessna business jet maker delivered 32 jets during the
quarter, down from 50 a year ago, and 38 commercial turboprops,
compared with 44 last year.
    Total revenue for the quarter ended Dec. 28 fell 7.2% from a
year ago to $3.61 billion. Analysts had estimated a revenue of
$3.81 billion.
    Textron continued to see demand softness in its industrial
segment, with quarterly revenue falling 9.6% from a year ago, as
inflationary pressure and competition from Chinese alternatives
affected sales at its specialized vehicles product line.
    Earlier this month, Textron said it was exploring strategic
alternatives for its specialized vehicles unit's Powersports
product line due to persistent demand weakness, and has paused
production for the same.
    The company posted fourth-quarter adjusted profit of $1.34
per share, compared with analysts' estimate of $1.33 per share.
    It now sees full-year 2025 revenue of about $14.7 billion,
compared with analysts' estimate of $14.75 billion.

 (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Vijay
Kishore)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))