Textron Inc.

Textron delivered a decent result in the last quarter with revenues of $3.6 billion which surpassed Wall Street expectations. The company faced a strong demand, a strong pricing net of inflation, and a higher aftermarket volume in this quarter. There was also a higher demand for aircraft deliveries. It was a quarter of strong customer demand and solid cash flow. Because of the continued wind-down of the H-1 program, the revenue was slightly down at Bell, which the company quite anticipated. On the other hand, Textron Systems was also awarded an anti-vehicle munition contract from the U.S. Army, which is an amazing achievement for the company. The company has also announced the delivery of Cottonmouth to the US Marine Corps for testing in 2023. It is worth highlighting that Textron witnessed a strong demand across commercial product lines. We provide the stock of Textron with a ‘Hold’ rating and a revision in the target price.