Bell Aviation posts mixed Q4 on lower deliveries

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Bell Aviation reported fourth-quarter (Q4) 2024 revenues of $1.1bn, marking a $58m increase from the previous year, primarily driven by growth in military programmes and aftermarket sales despite lower deliveries.

The helicopter division of Textron saw significant momentum in its Future Long-Range Assault Aircraft (FLRAA) program, though this was partially offset by reduced activity in the V-22 programme.

Commercial helicopter deliveries declined to 78 units in Q4, down from 91 units in the same period last year. On a sequential basis, the deliveries were significantly higher than 23 in Q3 primarily owing to the seasonality effect amplifying the number in the last quarter of the year.

On a cumulative basis, total commercial helicopter deliveries during 2024 clocked in at 172.

Despite this reduction, Bell achieved 5% year-over-year revenue growth, supported by strong aftermarket performance and military programme advances.

Segment profit decreased to $110m, an $8m reduction from the previous year, reflecting a less favorable product mix as lower V-22 programme volume offset gains from the FLRAA programme. Meanwhile, the margins clocked in at 9.7% – 130 basis points lower than same period last year.

The segment’s backlog remained robust at $2.6bn.

“At Bell, we made significant progress on FLRAA achieving Milestone B, which launched the Engineering and Manufacturing Development phase of the programme,” said Textron chairman and CEO Scott C. Donnelly.

The results align with parent company Textron’s broader performance, where Bell’s military programmes helped offset impacts from challenges in other divisions, including a strike at Textron Aviation. While margin pressures persist, Bell’s defence segment continues to provide stability through key programmes like FLRAA.

Textron’s broader financial performance was also affected, with overall company revenues reaching $3.6bn, representing a 7% year-over-year decline. However, the company maintained strong cash generation, reporting net cash flow of $1bn from the manufacturing group.

Shareholder returns remained robust, with $232m allocated to share repurchases in the quarter, bringing full-year repurchases to $1bn.

Looking ahead to 2025, Textron’s management presents an optimistic outlook despite facing market uncertainties. The company projects total revenues to reach $14.7bn, up from $13.7bn in 2024. Of this, revenue from Bell segment is expected at $4bn (12% year-over-year) with margins ranging from 8.5-9.5%.

This guidance reflects expectations of a stabilised production line and improved productivity at Textron Aviation, alongside growth across aerospace and defense businesses driven by new product development.

According to Robert Stallard of Vertical Research Partners, Textron’s fourth-quarter results contain significant “noise” due to the strike, industrial charge, and abnormal tax rate. The focus now shifts to the 2025 guidance and questions about potential contingencies built into the forecast, given uncertainties in various end markets.

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