Textron Aviation Turns in Mixed Q4, Full-year Results

 - January 27, 2022, 12:27 PM
Textron Aviation introduced the Citation M2 Gen2 and XLS Gen2 at the 2021 NBAA-BACE in October. (Photo: Textron Aviation)

Textron Aviation reported lower revenue and deliveries in its year-over-year fourth-quarter results, although full-year results matched more closely to the demand the business aviation industry was reporting throughout most of 2021.

In the fourth quarter, the Wichita-based Beechcraft and Cessna airframer earned $1.4 billion in revenue—$201 million less than the year-ago quarter—and delivered 46 Citation business jets and 43 Caravan and King Air turboprops, down from the same period in 2020 when it delivered 61 jets and 61 turboprops. For all of 2021, however, revenue was $4.56 billion compared with $3.97 billion in 2020, while deliveries increased to 167 jets from 132 in 2020 and turboprops were higher at 125 versus 113.

“We delivered aircraft on a more linear trend for the year, which improved manufacturing efficiency and cash flow generation,” said Scott Donnelly, chairman and CEO of Textron Aviation’s parent company, on a conference call with analysts today.

Fourth-quarter profit was $137 million, a $29 million increase from the same three-month period in 2020. For the year, profit was substantially higher: $378 million compared with $16 million in 2020.

Backlog also rose by $655 million quarter-over-quarter, for a total of $4.1 billion at year-end. The higher backlog, which is up by $2.5 billion from the end of 2020, also means Textron Aviation is increasing production. “We have been ramping up the production rate,” Donnelly said. “We continue to do that and expect to continue to do that throughout the course of 2022. The backlog has been very strong. We still see robust demand in the marketplace, so I think it remains very favorable from a market condition.”

Donnelly noted that the new utility turboprop twin Cessna SkyCourier has completed its flight-test program with 2,100 hours of flight activity. He added that FAA type certification of the SkyCourier is expected in the first half of this year. The company had earlier expected to receive certification by the end of 2021.