Textron Inc. (NYSE:TXT) reported second-quarter FY23 sales growth of 8.6% year-over-year to $3.42 billion, beating the consensus of $3.41 billion.
Adjusted EPS of $1.46 beat the consensus of $1.21.
“Operationally, execution was strong across our segments with a segment profit margin of 10.3% in the second quarter of 2023, up 140 basis points from last year’s second quarter,” said Textron Chairman and CEO, Scott C. Donnelly.
Operating cash flow for the second quarter was $314 million, compared to $364 million last year.
The company exited the quarter with cash and equivalents worth $1.695 billion.
At the end of the second quarter, Textron Aviation’s backlog was $6.8 billion, Bell’s backlog was $5.6 billion, and Textron Systems’ backlog was $1.9 billion.
Share Repurchase Program
On July 24, 2023, Textron’s Board of Directors approved a new authorization to repurchase up to 35 million shares.
FY23 Outlook Raised
Textron now expects 2023 adjusted EPS from continuing operations to be $5.20-$5.30, up from the previous outlook of $5.00-$5.20.
Textron reiterated its expectation for cash flow from continuing operations of the manufacturing group before pension contributions of $0.9 billion to $1.0 billion, with planned pension contributions of about $50 million.
Price Action: TXT shares traded higher by 10.3% at $75.43 on the last check Thursday.
