Fellow Shareholders,

2024 was a year of achievements and challenges for our company.

We saw strong demand for our commercial products at Textron Aviation and Bell and made progress on several important military programs, including achieving Milestone B approval on the Future Long Range Assault Aircraft (FLRAA) program. As a result of robust demand in our aerospace and defense businesses, we ended the year with a total company backlog of $17.9 billion, up $4 billion from 2023.

We faced a strike at Textron Aviation and difficult end markets in our Industrial segment. While the strike was unfortunate and adversely impacted the business’s ability to meet its production and delivery schedules during the latter part of the year, we were able to continue to work with suppliers, resulting in improved parts flow that should improve plant efficiency in the future. We have reached agreement with our employee union on a new five-year contract. To address the challenges in our Industrial segment, we focused on our cost structure and began a strategic review of the powersports product line.

Developing and Refreshing Commercial Products

Throughout the year, Textron Aviation continued to see strong demand across all product lines. Backlog grew throughout the year, ending at $7.8 billion, an increase of $676 million from 2023.

Building upon a strategy of continually refreshing its product lineup, Textron Aviation announced planned Gen3 platform upgrades to its Citation M2, CJ3 and CJ4 models. All three Gen3 aircraft will include the revolutionary Garmin Emergency Autoland technology, bringing peace of mind to pilots and passengers in this single pilot operator segment.

The Citation Ascend, a state-of-the-art business jet announced in 2023, added a second flight test article to the program as certification momentum builds for the aircraft. The flight test program logged more than 700 hours as the aircraft prepares for entry into service anticipated in 2025. The Beechcraft Denali has logged more than 2,500 hours of flight testing and began its certification flight test phase following the Federal Aviation Administration’s Type Inspection Authorization.

Demonstrating its versatility, the first Cessna SkyCourier equipped with a Combi interior conversion option—the ability to transport passengers and cargo at the same time—was certified by the FAA and delivered to a customer in Alaska. Along with the passenger and freighter variants, the SkyCourier has become an ideal aircraft for customers around the world who serve a variety of missions. The SkyCourier also received type certifications from regulatory agencies in Australia, Canada and the Philippines, expanding the aircraft’s market.

Bell saw steady order growth for its commercial aircraft across market segments. New commercial orders included the first order for the Bell 525 to Equinor, Norway’s state energy company, which signed an agreement to purchase 10 Bell 525 aircraft. The Bell 525 incorporates fly-by-wire flight controls and provides enhanced safety capabilities, reliability and optimized operation.

Bell also announced the signed purchase agreement for the sale of 15 Bell 407GXis with IFR configuration kits to Global Medical Response, bringing its total fleet to 250 Bell helicopters.

At Textron eAviation, we continued our investments in electric and hybrid aviation platforms. We made advancements in both our Nuuva hybrid-electric vertical takeoff and landing (VTOL) and Nexus electric vertical takeoff and landing (eVTOL) programs with the Nuuva’s first hover flight completed in January 2025. With the acquisition of Amazilia Aerospace, a respected developer of digital flight control, flight guidance and vehicle management systems for civil manned and unmanned aircraft, Textron eAviation enhanced its internal capabilities in these critical technologies.

In March, Pipistrel was granted a light-sport aircraft airworthiness exemption by the FAA for its Velis Electro, which allows U.S. flight schools to use the lower-cost and more sustainable electric aircraft in their flight training programs.

In July, Jacobsen maintained the golf course in Paris for the Summer Games with its fleet of ELiTE electric mowers. This marked the first all-electric fleet in use at the Games and the first time an all-electric fleet was used to maintain an entire course. The success of the ELiTE mowers was an opportunity to showcase our commitment to developing products that provide greener solutions for golf courses around the world.

Kautex won new contracts with automotive OEM customers, successfully securing 10 contract awards for its hybrid electric fuel systems.

Military Program Wins and Key Milestones Achieved

The U.S. Army’s approval of Milestone B for the FLRAA program marked the beginning of the weapon system’s status as a Program of Record and transitioned the program to its Engineering and Manufacturing Development phase. Bell continued to make significant investments to support the future growth of the program, including the announcement to insource the fuselage assembly at our new Bell Wichita facility.

Bell’s H-1 program entered a new chapter as the first AH-1Z arrived at the Bell Amarillo Assembly Center for the Structural Improvement Electrical Power Upgrade modification. The modifications will optimize the aircraft to improve mission capabilities, aircrew safety, and interoperability by increasing the electrical power capacity on the aircraft and support the integration of additional cabin capabilities. Bell also received a Foreign Military Sales contract award from the U.S. Department of Defense for the production and delivery of 12 AH-1Z helicopters for the government of Nigeria.

In addition, Bell was downselected as one of two companies to develop a prototype High-Speed VTOL aircraft for the U.S. military as part of the DARPA Speed and Runway Independent Technologies (SPRINT) X-Plane program.

Textron Aviation Defense delivered 11 Multi-Engine Training Systems (METS) Beechcraft King Air 260 aircraft to the U.S. Navy. The deliveries are part of a total of 62 aircraft currently contracted by Naval Air Systems Command, continuing our long-standing role in providing this training platform for Navy, Marine Corps and Coast Guard aviators.

Textron Systems delivered the 12th Ship-to-Shore Connector (SSC) craft to the U.S. Navy and received an award from Naval Sea Systems Command for the next production lot of nine SSC craft with a total contracted value of $960 million.

The Navy also awarded Textron Systems a contract for Mine Sweeping Payload Delivery Systems production, spares, and engineering services to support the Navy’s Mine Countermeasure Mission package. This award allows Textron Systems’ Common Unmanned Surface Vehicle (CUSV) to complete mine sweeping missions semi-autonomously and advance the CUSV system’s capabilities.

Textron Systems advanced on key program pursuits. We completed Option 3 of the Army’s Future Tactical Uncrewed Aircraft Systems (FTUAS) program, and made significant progress on Option 4 by delivering a production representative Aerosonde® Mk. 4.8 VTOL system to the U.S. Army. During the year, the company announced the delivery of two RIPSAW® M3 prototype vehicles to the U.S. Army for the Robotic Combat Vehicle (RCV) Phase I: Platform Prototype competitive program. A rugged and reliable RCV platform, the vehicle is designed to meet Army requirements while preserving transportability and mission versatility. Working as part of Team Lynx, Textron Systems supported the Detailed Design and prototype phase of the XM30 program.

Pieces in Place for 2025

We concluded 2024 with a strong backlog and solid demand in our aerospace and defense businesses. Combined with our continued strategic investments in new product development, improved manufacturing capabilities and a talented workforce of 34,000 people, we are well positioned for a successful 2025. On behalf of Textron’s Board of Directors, we thank you for your continued support of our company.

Scott C. Donnelly

Chairman and
Chief Executive Office