Providence's Textron plans to soar in 2024 as aviation divisions bring in big bucks

PROVIDENCE − Providence-based aviation and defense contractor Textron, a local focus of protests over the Israel-Hamas war, did well in 2023 and expects growth to continue, especially as subsidiary Bell was chosen by the U.S. Army to replace its fleet of Black Hawk helicopters.

Textron posted its fourth-quarter results from 2023 late last month amid predictions that it will deliver more civilian aircraft in 2024.

Textron owns an array of aviation and defense-related subsidiaries. It manufactures helicopters with Bell, electric planes with Pipistrel, regular planes with Beechcraft, Cessna and Textron Aviation Defense and other military systems with its defense company Textron Systems. It also manufactures a variety of other vehicles and gas systems, including the Arctic Cat brand, which includes snowmobiles and all-terrain vehicles.

How did Textron do in 2023?

Business was good for Textron in 2023 as its aviation manufacturers managed to get more planes and helicopters out the door than they did in 2022, according to the report.

Textron Aviation Defense built 13 T-6 military trainer planes, 10 more than a year prior, CEO Scott Donnelly said during an earnings call, according to the transcript posted by Insider Monkey.

At the helicopter company Bell, 91 commercial helicopters rolled off the assembly line in the fourth quarter, compared with 71 for the fourth quarter in 2022, although the total number of helicopters produced was down from 179 in 2022 to 171 in 2023, Donnelly said.

For Bell, $84 million in profits came from the U.S. Army's decision in 2022 to award the company a contract for a fleet to replace its Black Hawk helicopters, which have been used by the military since 1979, according to the earnings report. The replacement is the Bell V-280 Valor, a tilt-rotor aircraft (takes off like a helicopter, flies like an airplane). It is supposed to begin service by 2030.

Textron's electric aviation division, or eAviation, was down $10 million after bringing in $23 million in the fourth quarter, as its Slovenian subsidiary, Pipistrel, continues to spend money on research and development of battery-powered technology.

The company's Velis Electro, a single-prop two-seater training plane, was selected in October 2023 for the U.S. Air Force's Agility Prime program, which is trying to accelerate development of the electric flight sector.

What does Textron forecast for 2024?

In its earnings report, company executives forecast an increase in revenue of just under $1 billion in 2024.

In the earnings call, Donnelly said Bell is expected to see growth in 2024 from its military programs and more helicopters delivered to consumers, while Pipistrel is also expected to hand over more planes to its buyers. Overall, Textron expects to have higher revenue in 2024.

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Company looks to save $75 million in first half of 2024

In November 2023, Textron announced it was cutting 725 jobs across the company as part of a global restructuring plan.

That saved the company $126 million in the fourth quarter and is expected to save it another $75 million in the first half of 2024.

Providence Business News reported that the layoffs did not affect corporate employees at the company's headquarters in Providence. Rather, the layoffs were focused on its industrial, Textron Systems and Bell subsidiaries.

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Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on The Providence Journal: Textron forecasts positive earnings for 2024 as military sales boom