Textron Inc. (NYSE:TXT) Q2 2023 Earnings Call Transcript

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Scott Donnelly: Well, look, I think the demand environment is driven by the fact that people– a particular people who have come into this market and started using aircraft and experienced what private aviation is all about, have had a great experience. I mean there are time machines, right? It allows you to do things that you just can’t do if you’re using commercial transportation. So the productivity, the efficiency, the ability to get from anywhere to anywhere on your time and in an expeditious way is something that the more and more people and I think, again, this is if you’re affected by COVID a lot of people got exposed to this market that had not in the past, and they’re turning out to be a great tool. And so I think that’s what continues to fuel a lot of the demand in this marketplace.

So it’s obviously, we offer a lot of products across a broad range of price points and performance. And I think that’s why we’re seeing just a fundamentally very strong demand environment. And as you know, it’s not just our company and our products, but across a very, very broad range of general aviation. .

Kristine Liwag: Yes. And I guess when you look at the portfolio, light, medium and large cabin, that large cabin out of the market continues to also be robust. At this point, when you look at the Cessna portfolio, what’s your appetite to go bigger? I mean we had the Columbus and the Hemisphere that didn’t come about, but is there a right moment to reintroduce an airplane of that size or even larger and move up the portfolio to the larger cabin jets?

Scott Donnelly: No, I don’t think there is. Look, we did look at one point, as you know when we stretch the top end of our platform. We did have programs at the time and for technical reasons and we ended up not doing those programs. I think that part of the market now, particularly as you go larger in that market, which is kind of the choice we were faced with, is a very well-served market. So I think we’re better off focusing all of our R&D and our energy in our investments in sort of up to that super midsize on the Longitude. We’ve been doing, as you know, a lot of great upgrades to a lot of those programs, platforms all across our portfolio. And yes we continue to make the right investments. Denali is still in development, and that’s going to be a homerun for us, is then which just announced.

I mean, that’s right in the sweet spot of our market, that’s a segment of the market that we’ve had a great track record in the past with previous aircraft, and I think this end will be really well received and drive a ton of growth for us. So, this is — I think that — and we’re very focused on making those investments across everything from our little Cessna 172s and now, of course, in the electric space with Pipistrel and eAviation up through Longitude. But I think that’s a pretty good place for us to be and that’s where we’re going to focus our R&D efforts.

Kristine Liwag: Great, thanks Scott.

Operator: Thank you. And ladies and gentlemen, today’s conference will be available today, 10:00 a.m. Eastern Time running through July 27, 2024 at midnight. You may access the AT&T replay system by dialing 18662071041 and entering the access code of 8467989. International dialers may call 402-970-0847. Those numbers again are 18662071041 or 402-970-0847 with the access code of 8467989. That does conclude your conference for today. Thank you for your participation and for using AT&T Event Conferencing. You may now disconnect.

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