22 TEXTRON 2025 PROXY STATEMENT COMPENSATION DISCUSSION AND ANALYSIS EXECUTIVE SUMMARY Key 2024 Performance Highlights In 2024, Textron’s revenues were $13.7 billion, up $19 million compared to the previous year. Segment profit was $1.2 billion, down $127 million from 2023. Backlog at the end of 2024 increased $4 billion to $17.9 billion, compared to $13.9 billion at the end of 2023. Our operating results were adversely impacted by a strike at our Textron Aviation segment initiated on September 21, 2024 by the International Association of Machinists and Aerospace Workers District 70, Local Lodge 774. On October 20, an agreement was reached on a new five-year labor contract. As a result, revenues and profit for the second half of 2024 were unfavorably impacted due to delayed aircraft deliveries and manufacturing inefficiencies associated with the labor disruption and the recovery of operating activities. At the Industrial segment, we experienced lower revenues and profit in 2024, largely resulting from a decline in demand in our end markets for Textron Specialized Vehicles products. We are in the process of conducting a strategic review of our powersports product line. The ramp up of the Future Long Range Assault Aircraft (FLRAA) program at our Bell segment contributed to a 14% growth in Bell’s revenues for the year. In the second half of the year, Bell was awarded contracts totaling approximately $3.0 billion for this phase of the program. Bell’s added backlog contributed to a total company backlog increase of $4.0 billion, 29%, to $17.9 billion at the end of 2024. This backlog increase included growth of $676 million at the Textron Aviation segment, reflecting steady customer demand supported by new products, and $644 million at the Textron Systems segment, which included new contract awards for the Ship-toShore Connector program. Financial highlights for 2024 also include: • Generated $1.0 billion of net cash from operating activities from our manufacturing businesses • Invested $491 million in research and development projects and $364 million in capital expenditures • Returned $1.1 billion to our shareholders through the repurchase of 12.9 million shares of our common stock Business highlights for 2024 include: • Textron Aviation announced planned Gen3 platform upgrades to its Citation M2, CJ3 and CJ4 models, adding features such as Garmin Emergency Autoland along with other avionics and aircraft enhancements. Following FAA certification, the first Cessna SkyCourier equipped with a Combi interior conversion option was delivered. Textron Aviation Defense delivered the first 11 of 62 contracted Multi-Engine Training Systems (METS) Beechcraft King Air 260 aircraft to the U.S. Navy. $13,683 2023 2024 $0 $14,000 ($ in millions) Revenues $1,200 $1,327 2023 2024 $0 $1,400 ($ in millions) Segment Profit $17,908 $13,899 2023 2024 $0 $18,000 ($ in millions) Backlog at Year-End $13,702
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