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In March, Textron Aviation celebrated FAA certification of the Cessna SkyCourier, its new clean-sheet aircraft. Following certification, Textron Aviation delivered the first aircraft to its launch customer, FedEx Express and, by the end of 2022, they had taken delivery of six SkyCouriers. We also received FAA certification and made the first deliveries of our Citation M2 Gen2 entry-level light jet and Citation XLS Gen2 midsize business jet, representing the next generation of these popular models.

As Textron Aviation marked the successful certification and deliveries of our newest models, the second Beechcraft Denali prototype took to the skies as part of its flight test program. By the end of 2022, the Denali had accumulated more than 800 flight test hours.

To better support our growing base of Cessna and Beechcraft customers, Textron Aviation broke ground on a 180,000-square-foot expansion of its parts distribution facility in Wichita. This additional space will allow Textron Aviation to invest in inventory to support new products and bolster stock levels for existing products. In response to customer demand in the Dallas-Fort Worth metro area, Textron Aviation announced a new satellite service center at Dallas Love Field. This will offer additional flexibility to our customers—both those locally based and transit customers doing business in the area.

We also saw increased commercial sales activity at Bell across our product portfolio, including greater demand for our 505 Jet Ranger X for use in pilot training. During the year, South Korea ordered forty Bell 505 aircraft for use as its next military training helicopter, and the Royal Jordanian Air Force ordered ten 505s as well as a flight training device and a comprehensive computer-based training package.

During the year, the Bell 505 celebrated two important milestones, achieving its 400th delivery and surpassing 100,000 flight hours. The Bell 429 also marked a milestone as it surpassed 500,000 global flight hours, continuing to showcase its versatility throughout corporate, HEMS, law enforcement and utility missions.

Demand was strong for our Textron Specialized Vehicles product lineup of golf, turf maintenance and ground support equipment businesses. In response to customer demand for products that reduce the impact on the environment, we expanded our lineup of zero-emission products powered by lithium-ion battery technology.

Winning New Contract Awards and Executing on Existing Programs
for our Military Customers
In December, the U.S. Army awarded Bell the development contract for the U.S. Army’s FLRAA program. We are honored that the Army selected the Bell V-280 Valor tiltrotor to modernize its Air Assault fleet and look forward to delivering this transformational aircraft to the warfighters. Through more than 700,000 hours of operational tiltrotor flight time on the V-22 fleet, Bell demonstrated the unique capabilities of tiltrotor technology. The V-280 advances this technology, providing unmatched speed, range, payload, agility, survivability and endurance that will transform Army aviation.

As Bell prepares to execute on the FLRAA contract pending a competitor’s bid protest, it also made significant progress during the year on the Bell 360 Invictus, our aircraft submission for the Army’s Future Attack Reconnaissance Aircraft (FARA) program. With the build of the 360 Invictus nearly complete, we are expecting first flight in 2023 pending delivery of the Army improved turbo engine.

At Textron Systems, we advanced our weapons programs with two contract awards based on our new anti-vehicle munition system that fulfills the U.S. Army’s directive for next-generation technology in this area. The XM204 Top Attack Munition, an anti-vehicle terrain shaping system, is a five-year contract valued at up to $354 million. The other award, also a five-year contract that is valued at $162 million, builds upon the XM204 technology by adding mission planning tools and a remote-control station that enables constant soldier-in-the-loop control.

Textron Systems also delivered the Cottonmouth^TM Advanced Reconnaissance Vehicle (ARV) prototype to the U.S. Marine Corps to begin the formal government evaluation phase that will take place through 2023. Purpose-built for the Marine Corps’ ARV program, the Cottonmouth has a multi-domain command and control suite integrated into the vehicle that allows it to coordinate data and serve as the battlefield manager for the modern battlefield. Textron Systems also delivered its fifth and sixth Ship-to-Shore connector to the U.S. Navy following successful completion of acceptance trials.

Our Beechcraft AT-6E Wolverine achieved Military Type Certification from the U.S. Air Force, enabling global sales of this light attack aircraft through either the U.S. government-sponsored foreign military sales program or the direct commercial sales process. Textron Aviation Defense also celebrated the 1,000th delivery of the T-6 military flight trainer and five million flight hours across the global fleet. The Beechcraft T-6 aircraft is flown by 13 nations and two NATO flight schools, a testament to this multi-mission aircraft system designed to meet a wide variety of warfighter and peacekeeper needs.

Innovation for a Sustainable Future
As part of our commitment to reducing the environmental footprint of our manufacturing operations, we continued towards our five-year Achieve 2025 Energy Use and Greenhouse Gas Emission reduction goals. We also moved forward with innovations that incorporate sustainability into product design.

Textron GSE announced a collaboration with GM and Powertrain Control Solutions (PCS) to electrify its diverse product line. This integrated driveline, specifically designed for Textron GSE products, utilizes GM’s lithium-ion battery systems. This is enabling Textron GSE to broaden its electric product offering across its TUG, Premier, Douglas and Safeaero brands, including the launch of the new TUG Endurance baggage/cargo tractor available with a lithium-ion electric powertrain. As we began 2023, Jacobsen introduced its new SF1 ELiTE lithium mowers as part of its expanded lithium-powered lineup.

Kautex announced it had received the first order from an automotive OEM for a thermoplastic composite underbody battery protection skid plate. The new skid plate design will be produced for on-and-off-road applications. It is part of Kautex’s new Pentatonic battery system product line supporting battery electric vehicle production. During the year, Kautex also continued to execute on its hybrid fuel tank programs, winning 14 hybrid electric vehicle programs.

All Textron Aviation-owned service centers around the world achieved certification as part of the National Air Transportation Association’s Sustainability Standard for Aviation Businesses, the first aircraft original equipment manufacturer to receive this recognition and the largest company with multiple locations to self-certify each site.

Acquisition of Pipistrel Supports our Long-Term Strategy for Sustainable Aviation
Our acquisition of Pipistrel, a pioneer and global leader in electrically powered aircraft, puts us in a uniquely strong position to develop technologies for the sustainable aviation market. Along with the formation of our Textron eAviation business segment, we can pursue our long-term strategy to offer a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission roles as well as other research and development initiatives related to sustainable aviation solutions.

Pipistrel will remain a distinct aviation brand within Textron, joining Cessna, Beechcraft and Bell. Pipistrel’s products include light aircraft and gliders with both electric and combustion engines, including the Velis Electro, the only certified electric aircraft in commercial service, now certified in more than 30 countries. This lineup of sustainable aircraft complements our existing aviation product portfolio and provides our customers with additional options for aircraft depending on their needs.

Pipistrel is working to expand its electric aircraft lineup with the introduction of the Nuuva V300, an unmanned hybrid electric aircraft designed for aerial cargo missions requiring long range, large capacity and heavy weight capabilities. Flight testing for this autonomous air vehicle is slated to begin in 2023.

A Successful 2022
Our success in 2022 was a confluence of a strong demand environment, our broad product portfolio and successful execution by our businesses. As we navigated the challenges of the global supply chain, our teams demonstrated incredible resolve. With robust commercial activity, several significant military awards and an active pipeline of new products, we are well-positioned to continue this momentum for an even more successful 2023. Our teams across the globe are ready to seize the opportunities that are ahead.

Scott C. Donnelly
Chairman and Chief Executive Officer