2023 ANNUAL REPORT

TEXTRON AVIATION

Textron Aviation is home to the Beechcraft® and Cessna®

aircraft brands and is a leader in general aviation through

two principal product lines: aircraft and aftermarket

parts and services. Aircraft includes sales of business

jets, turboprop and military trainer and defense aircraft

and piston engine aircraft. Aftermarket parts and services

includes commercial parts sales and maintenance,

inspection and repair service.

BELL

Bell is a leading supplier of helicopters, tiltrotor aircraft

and related spare parts and services. Bell supplies

military helicopters and tiltrotors to the U.S. Government

and non-U.S. military customers and supplies

commercially certiﬁed helicopters to corporate, private,

law enforcement, utility, public safety, emergency

medical and other helicopter operators. Bell provides

support and service for an installed base of approximately

13,000 helicopters.

INDUSTRIAL

Our industrial segment designs and manufactures a

variety of products within the Kautex and Specialized

Vehicles product lines. Kautex is a leader in designing

and manufacturing plastic fuel systems for automobiles

and light trucks, along with other automotive systems

and components. Specialized Vehicles includes golf cars,

recreational and utility vehicles, aviation ground support

equipment and professional mowers, manufactured

by Textron Specialized Vehicles businesses.

TEXTRON SYSTEMS

Textron Systems’ businesses develop, manufacture and

integrate products and services for U.S. and non-U.S.

military, government and commercial customers to

support defense, homeland security, aerospace and other

missions. Product and service oerings include electronic

systems and solutions, advanced marine craft, piston

aircraft engines, live military air-to-air and air-to-ship

training, weapons and related components, unmanned

aircraft systems, and both manned and unmanned

armored and specialty vehicles.

TEXTRON eAVIATION

Textron eAviation includes Pipistrel, a manufacturer of

light aircraft, along with other research and development

initiatives related to sustainable aviation solutions. Pipistrel

oers a family of light aircraft and gliders with both electric

and combustion engines. Pipistrel’s Velis Electro is the

world’s ﬁrst, and currently only, electric aircraft to receive

full type certiﬁcation from the European Union Aviation

Safety Agency and from the UK Civil Aviation Authority.

FINANCE

Our Finance segment, operated by Textron Financial

Corporation (TFC), is a commercial ﬁnance business that

provides ﬁnancing solutions for purchasers of Textron

products, primarily Textron Aviation aircraft and Bell

helicopters. For more than ﬁve decades, TFC has played

a key role for Textron customers around the globe.

GLOBAL

NETWORK OF

BUSINESSES

Textron is known around the world for its

powerful brands of aircraft, defense and

industrial products that provide customers

with groundbreaking technologies,

innovative solutions and ﬁrst-class service.

SELECTED

YEAR-OVER-YEAR

FINANCIAL DATA

Textron 2023 Annual Report 1

(Dollars in Millions, Except Per Share Amounts) 2023 2022

Total Revenues $13,683 $12,869

Total Segment Proﬁt

1,327 1,136

Income from Continuing Operations—GAAP 922 862

Adjusted Income from Continuing Operations—Non-GAAP

1,127 956

PER SHARE OF COMMON STOCK

Common Stock Price at Year-End $ 80.42 $ 70.80

Diluted Income from Continuing Operations—GAAP 4.57 4.01

Adjusted Diluted Income from Continuing Operations—Non-GAAP

5.59 4.45

COMMON SHARES OUTSTANDING (In Thousands)

Diluted Average 201,774 214,973

Year-End 192,898 206,161

FINANCIAL POSITION

Total Assets $16,856 $16,293

Manufacturing Group Debt 3,526 3,182

Finance Group Debt 348 375

Shareholders’ Equity 6,987 7,113

Manufacturing Group Debt-to-Capital (Net of Cash) 17% 15%

Manufacturing Group Debt-to-Capital 34% 31%

KEY PERFORMANCE METRICS

Net Cash from Operating Activities of Continuing Operations for the Manufacturing Group—GAAP $ 1,270 $ 1,461

Manufacturing Cash Flow Before Pension Contributions—Non-GAAP

931 1,178

1. Segment Proﬁt, Adjusted Income from Continuing Operations, Adjusted Diluted Earnings Per Share and Manufacturing Cash Flow Before Pension Contributions are Non-GAAP Financial Measures. See page 7 for

a Reconciliation to GAAP.

U.S. 68%

Europe 10%

Other International 22%

Textron Aviation 39.3%

Industrial 28.1%

Bell 23.0%

Textron Systems 9.0%

Finance 0.4%

Textron eAviation 0.2%

Commercial 79%

U.S. Government 21%

2023 TOTAL REVENUES

BY SEGMENT

2023 TOTAL REVENUES

BY CUSTOMER

2023 TOTAL REVENUES

BY REGION

U.S. 68%

Europe 10%

Other International 22%

Textron Aviation 39.3%

Industrial 28.1%

Bell 23.0%

Textron Systems 9.0%

Finance 0.4%

Textron eAviation 0.2%

Commercial 79%

U.S. Government 21%

2023 TOTAL REVENUES

BY SEGMENT

2023 TOTAL REVENUES

BY CUSTOMER

2023 TOTAL REVENUES

BY REGION

U.S. 68%

Europe 10%

Other International 22%

Textron Aviation 39.3%

Industrial 28.1%

Bell 23.0%

Textron Systems 9.0%

Finance 0.4%

Textron eAviation 0.2%

Commercial 79%

U.S. Government 21%

2023 TOTAL REVENUES

BY SEGMENT

2023 TOTAL REVENUES

BY CUSTOMER

2023 TOTAL REVENUES

BY REGION

IN 2023, WE SUCCESSFULLY EXECUTED ON OUR STRATEGY

of ongoing investments in new products and programs to drive

organic growth and margin expansion. We launched new

products across our businesses, won new business from our

U.S. military customers and continued the innovation that

will drive future growth.

SCOTT C. DONNELLY

Chairman and Chief Executive Ofﬁcer

FELLOW SHAREHOLDERS,

2 Textron 2023 Annual Report

Beechcraft King Air 260

selected for

Navy’s new

Multi-

Engine

Training

System

FIRST QUARTER

First order for Kautex

Pentatonic underbody battery

protection system

Jacobsen and Cushman

showcase all-electric

product lineup

ROBUST NEW PRODUCT PIPELINE

Reﬂecting strong demand for its broad range of aircraft,

Textron Aviation ended 2023 with a backlog of

$7.2 billion, an increase of $782 million from year-end

2022. Textron Aviation continued its investments in new

products with the introduction of the Cessna Citation

Ascend, which is currently under development.

The Citation Ascend is designed to bring the latest

technology and innovations in cockpit avionics, engine

performance and luxurious cabin features to the midsize

business jet market. In September, Textron Aviation

and NetJets announced a ﬂeet agreement for the option

for NetJets to purchase up to 1,500 additional Citation

business jets over the next 15 years. As part of this

agreement, NetJets was named as the ﬂeet launch customer

for the Citation Ascend, which is expected to enter into

service in 2025.

Textron Aviation also announced the Citation CJ3 Gen2, the

most comprehensive of our Gen2 product announcements

to date, incorporating leading-edge technology, proven

performance and an unmatched cabin experience in the

light jet market. Both new Citation models have been

designed with the input of Textron Aviation’s Customer

Advisory Boards.

We also announced the addition of the revolutionary

Garmin Emergency Autoland system to the Beechcraft

Denali, a new, single-engine turboprop which is currently

in the certiﬁcation process with the Federal Aviation

Administration. The Denali is the ﬁrst aircraft powered

by the new, ecient GE Catalyst engine.

Textron Specialized Vehicles introduced new products

across its brands. Demonstrating its leadership in lithium

battery technology and commitment to electriﬁcation, the

company unveiled its new Jacobsen SLF1 ELiTE lithium

mower. The newest Jacobsen oering was the centerpiece

of an all-electric display of Jacobsen and Cushman products

at the 2023 Golf Course Superintendents Association of

America Conference and Trade Show.

E-Z-GO also released new vehicle models, including the

street-legal E-Z-GO Liberty LSV for personal transportation

and a next-generation upgrade to the market-leading RXV

golf car. New Cushman low-speed vehicles, the Cushman

Tour LSV and Hauler PRO LSV, are street-legal vehicles

designed for utility use. The new Arctic Cat CATALYST

snowmobile platform featured an innovative design that

delivers more control for the rider and requires signiﬁcantly

less eort in carving through the snow.

MILITARY PROGRAM AWARDS AND

DOWNSELECTS

During 2023, Bell began work on development of the

next-generation tiltrotor aircraft for the U.S. Army’s Future

Long Range Assault Aircraft (FLRAA) program under a

contract awarded to Bell in December 2022. Bell ramped up

activity with additional engineering resources, contracting

with key suppliers,

ordering long-lead

materials and breaking

ground on a new FLRAA

Drive Systems Test

Lab as it continues work

on a truly remarkable

and transformational

tiltrotor aircraft, based

on the V-280 Valor, to

meet U.S. Army weapon

system requirements.

Bell was selected to

compete for the Defense Advanced Research Projects

Agency (DARPA) Speed and Runway Independent

Technologies (SPRINT) X-Plane program, developing an

experimental aircraft with jet aircraft performance while

providing runway independence for the next generation of

air mobility platforms. With Bell’s long history producing

X-planes such as the Bell X-1 and XV-15, and its investments

in High-Speed Vertical Take-o and Landing (HSVTOL)

technology and research, Bell will continue to push the

boundaries of vertical lift aircraft performance.

In February, Textron Aviation announced it was awarded

the Multi-Engine Training System (METS) contract by Naval

Citation XLS Gen2 achieves FAA

certiﬁcation, begins deliveries

2 Textron 2023 Annual Report

SECOND QUARTER

Bell breaks ground on new

FLRAA facility

Milestone 400th delivery of

Citation CJ4

Textron Aviation

announces Cessna

Citation Ascend

Textron 2023 Annual Report 3

Textron Aviation

continued its

investments in

new products with

the introduction

of the Cessna

Citation Ascend,

which is

currently under

development.

Air Systems Command

(NAVAIR). The initial

contract award was

for 10 Beechcraft King

Air 260 aircraft, with

options for up to an

additional 54 aircraft,

and associated spare

parts and support.

Deliveries of the aircraft

are expected to begin in 2024, and the customer recently

exercised the option for an additional 10 aircraft.

Textron Systems continued to expand its support to our

military customers. We grew our Intelligence, Surveillance

and Reconnaissance (ISR) support to the U.S. Navy,

expanding our Aerosonde® uncrewed aircraft systems

(UAS) from four to seven vessels over the course of 2023.

In addition, the business received a Navy award for the

design, development and integration of a next-generation

mine sweep system known as the Magnetic and Acoustic

Generation Next Unmanned Superconducting Sweep

(MAGNUSS) for use on board the Common Unmanned

Surface Vehicle platform.

During the year, the U.S. Army downselected Textron

Systems for several important programs. After successfully

completing the requirements for the Future Tactical

Uncrewed Aircraft System (FTUAS) program Option 1,

Textron Systems was selected for the Option 2 award. In this

phase, Textron Systems reﬁned its proposed design for the

Aerosonde® Mk. 4.8 Hybrid Quad UAS based on the Army’s

Modular Open System Approach requirements.

On the Land side, Textron Systems’ RIPSAW® M3 was

downselected to participate in the Army’s Robotic Combat

Vehicle Phase 1: Platform Prototype program, an anticipated

Army Program of Record. Textron Systems will deliver two

prototype vehicles in 2024 to the Army for comprehensive

testing. Textron Systems is also part of a team chosen for the

next phase of the XM30 Combat Vehicle Program. Textron

Systems is the designated manufacturer for this team,

fabricating, assembling and testing the prototype vehicles.

The XM30 vehicle will eventually replace the Army’s ﬂeet

of more than 3,000 M2 Bradley Fighting Vehicles.

LEADERSHIP IN ELECTRIFICATION

As the new Jacobsen SLF1 ELiTE leads the turf industry in

electriﬁcation, we are making tremendous strides across

the company with ground-breaking electric technologies

and products for land and air.

As part of its ongoing initiative to electrify its product line,

Textron Ground Support Equipment launched its new TUG

660 Li belt loader, powered by lithium battery technology.

This zero-emission, fully electric operation allows airlines, air

freight companies and ground handlers to help achieve their

sustainability goals with lower operational costs.

Pipistrel, within our Textron eAviation segment, has expanded

its distributor and customer reach while making progress on

new products. In 2023, Pipistrel added three new distributors

Textron 2023 Annual Report 5

4 Textron 2023 Annual Report

THIRD QUARTER

Team Lynx,

which includes

Textron Systems,

downselected

for XM30 Combat

Vehicle Program

Announced ﬂeet agreement with NetJets

for option to purchase up to 1,500

additional Citation jets over 15 years

Army selects

Textron Systems

for Phase 2 of

FTUAS program

During the year,

the U.S. Army

downselected

Textron Systems

for several

important

programs.

Textron 2023 Annual Report 5

4 Textron 2023 Annual Report

FOURTH QUARTER

Textron Systems’

RIPSAW downselected

for Army program

Bell selected to compete

for the DARPA SPRINT

X-Plane program

Cessna Citation CJ3

Gen2 unveiled

in the U.S. that collectively represent 29 states, as well as

distributors in both Canada and Africa. These distributors

are an extension of our continued eorts to sell, service and

support our growing ﬂeet of Pipistrel aircraft.

Pipistrel also announced that its Velis Electro will be used

by the U.S Air Force’s (USAF) Agility Prime program to

explore operational and training uses of the aircraft. Agility

Prime is the USAF’s vertical lift program that partners

with the eVTOL commercial industry, providing access to

zero emission aircraft for a variety of uses, including training

and operations.

Pipistrel’s 2023 progress

included preparation

for the Nuuva v300’s

ﬁrst ﬂight. The hybrid

electric, remotely

piloted VTOL cargo

aircraft, has been

designed to carry up to

660 pounds of payload

at a typical range of up

to 162nm. Additionally,

Textron eAviation

is leveraging expertise across our Bell, Textron Aviation

and Textron Systems businesses in the development of

our Nexus eVTOL platform demonstrator for passenger

transport. During 2023, the team conducted wind tunnel

testing on a scale-powered model and began the build

of the demonstrator vehicle.

After receiving its ﬁrst order from an automotive OEM

in late 2022 for a thermoplastic composite underbody

battery protection system, Kautex ramped up in preparation

for successful production of this innovative product.

The underbody protection product is part of Kautex’s

customizable Pentatonic battery system, which also

includes battery enclosures and thermal management

systems for use in electric vehicles, from hybrid to full

battery electric vehicles. This order represented a signiﬁcant

step in establishing Kautex as a supplier in the expanding

battery electric vehicle market.

A STRONG YEAR ACROSS OUR BUSINESSES

By successfully executing on our long-term strategy of

investing in new products, our sales and service channels

and our manufacturing operations, we had a year of strong

performance. With the hard work and dedication of our

employees, our achievements position us for sustained

growth in the year ahead. Guided by our values of integrity,

respect, trust, and the pursuit of excellence, we will

continue to drive innovation across our company and

remain committed to delivering long-term value for our

shareholders. On behalf of Textron’s Board of Directors,

thank you for your continued support of our company.

SCOTT C. DONNELLY

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Arctic Cat

unveils new

858 snowmobile

engine

We are making

tremendous

strides across

the company

with ground-

breaking electric

technologies

and products for

land and air.

SCOTT C. DONNELLY

(1)

Chairman, President and CEO

Textron Inc.

RICHARD F. AMBROSE

(2) (4)

Executive Vice President, Space

(Retired)

Lockheed Martin Corporation

KATHLEEN M. BADER

(2) (3)

President and CEO (Retired)

NatureWorks LLC

R. KERRY CLARK

(1) (2) (3) (5)

Chairman and CEO (Retired)

Cardinal Health, Inc.

MICHAEL X. GARRETT

(2) (3)

General (Retired)

U.S. Army

DEBORAH LEE JAMES

(1) (4)

23rd Secretary of the

U.S. Air Force (Retired)

THOMAS A. KENNEDY

(2) (4)

Executive Chairman (Retired)

Raytheon Technologies

LIONEL L. NOWELL III

(1) (2)

Senior Vice President and

Treasurer (Retired)

PepsiCo, Inc.

JAMES L. ZIEMER

(2) (4)

President and CEO (Retired)

Harley-Davidson, Inc.

MARIA T. ZUBER

(1) (3)

Vice President, Research

Massachusetts Institute of

Technology

Numbers Indicate Committee

Memberships:

(1) Executive Committee:

Chair, Scott C. Donnelly

(2) Audit Committee:

Chair, Lionel L. Nowell III

(3) Nominating and Corporate

Governance Committee:

Chair, Maria T. Zuber

(4) Organization and Compensation

Committee:

Chair, Deborah Lee James

(5) Lead Director:

R. Kerry Clark

SCOTT C. DONNELLY

Chairman, President and

Chief Executive Ocer

Textron Inc.

FRANK T. CONNOR

Executive Vice President and

Chief Financial Ocer

Textron Inc.

JULIE G. DUFFY

Executive Vice President and

Chief Human Resources Ocer

Textron Inc.

E. ROBERT LUPONE

Executive Vice President,

General Counsel, Secretary and

Chief Compliance Ocer

Textron Inc.

LISA M. ATHERTON

President and CEO

Bell

RONALD DRAPER

President and CEO

Textron Aviation

TOM HAMMOOR

President and CEO

Textron Systems

ROBERT HOTALING

President

Textron Financial

JÖRG RAUTENSTRAUCH

President and CEO

Industrial Segment and

Kautex

ROB SCHOLL

President and CEO

Textron Specialized

Vehicles

KRIYA SHORTT

President and CEO

Textron eAviation

MARK S. BAMFORD

Vice President and

Corporate Controller

Textron Inc.

JANET S. FOGARTY

Vice President and

Deputy General Counsel

Textron Inc.

DANA L. GOLDBERG

Vice President – Tax

Textron Inc.

SCOTT P. HEGSTROM

Vice President –

Mergers & Acquisitions and

Strategy

Textron Inc.

SHANNON H. HINES

Senior Vice President –

Government Aairs &

Washington Operations

Textron Inc.

TODD A. KACKLEY

Vice President and

Chief Information Ocer

Textron Inc.

LAWRENCE J. LA SALA

Vice President and

Deputy General Counsel –

Litigation

Textron Inc.

THOMAS N. NICHIPOR

Vice President –

Textron Audit Services

Textron Inc.

DAVID ROSENBERG

Vice President –

Investor Relations

Textron Inc.

ERIC SALANDER

Vice President and

Treasurer

Textron Inc.

BOARD OF DIRECTORS

EXECUTIVE

OFFICERS

SEGMENT AND

BUSINESS UNIT

PRESIDENTS

CORPORATE

OFFICERS

LEADERSHIP

6 Textron 2023 Annual Report

FOOTNOTE TO SELECTED

YEAR-OVER-YEAR FINANCIAL DATA

(continued from page 1)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP

Textron 2023 Annual Report 7

6 Textron 2023 Annual Report

SEGMENT PROFIT

Segment proﬁt is an important measure used by our chief operating decision maker for evaluating performance and for decision-making

purposes. Beginning in 2023, we changed how we measure our manufacturing segment operating results to exclude the non-service

components of pension and postretirement income, net; LIFO inventory provision; and intangible asset amortization. This measure also

continues to exclude interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions;

and special charges. The prior period has been recast to conform to this presentation. The measurement for the Finance segment includes

interest income and expense along with intercompany interest income and expense.

ADJUSTED INCOME FROM CONTINUING OPERATIONS, ADJUSTED DILUTED EARNINGS PER SHARE AND OUTLOOK

Adjusted income from continuing operations and adjusted diluted earnings per share exclude special charges, net of tax and gains/losses on

major business dispositions, net of tax. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset

impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative

of ongoing operations.

Beginning in 2023, these measures also exclude LIFO inventory provision, net of tax and Intangible asset amortization, net of tax. LIFO inventory

provision is excluded to improve comparability with other companies in our industry who have not elected to use the LIFO inventory costing

method. Intangible asset amortization is excluded to improve comparability as the impact of such amortization can vary substantially from

company to company depending upon the nature and extent of acquisitions and exclusion of this expense is consistent with the presentation of

non-GAAP measures provided by other companies within our industry. Management believes that it is important for investors to understand that

these intangible assets were recorded as part of purchase accounting and contribute to revenue generation. The prior period has been recast to

conform to this presentation.

ADJUSTED INCOME FROM CONTINUING OPERATIONS AND ADJUSTED DILUTED EARNINGS PER SHARE GAAP

TO NONGAAP RECONCILIATION

(Dollars in Millions, Except Per Share Amounts) 2023 2022

INCOME FROM CONTINUING OPERATIONSGAAP $ 922 $ 862

Add: Special charges, net of tax 94 —

LIFO Inventory provision, net of tax 81 54

Intangible asset amortization, net of tax 30 40

ADJUSTED INCOME FROM CONTINUING OPERATIONSNONGAAP $1,127 $ 956

INCOME FROM CONTINUING OPERATIONSGAAP $ 4.57 $4.01

Add: Special charges, net of tax 0.47 —

LIFO inventory provision, net of tax 0.40 0.25

Intangible asset amortization, net of tax 0.15 0.19

ADJUSTED INCOME FROM CONTINUING OPERATIONSNONGAAP $ 5.59 $4.45

MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS

Manufacturing cash ﬂow before pension contributions adjusts net cash from operating activities (GAAP) for the following:

•

Deducts capital expenditures and includes proceeds from insurance recoveries and the sale of property, plant and equipment

to arrive at the net capital investment required to support ongoing manufacturing operations;

•

Excludes dividends received from Textron Financial Corporation (TFC) and capital contributions to TFC provided under the Support Agreement

and debt agreements as these cash ﬂows are not representative of manufacturing operations;

•

Adds back pension contributions as we consider our pension obligations to be debt-like liabilities. Additionally, these contributions can ﬂuctuate

signiﬁcantly from period to period and we believe that they are not representative of cash used by our manufacturing operations during the period.

While we believe this measure provides a focus on cash generated from manufacturing operations, before pension contributions, and may be used

as an additional relevant measure of liquidity, it does not necessarily provide the amount available for discretionary expenditures since we have

certain non-discretionary obligations that are not deducted from the measure.

MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS GAAP TO NONGAAP RECONCILIATION Millions)

(In Millions) 2023 2022

NET CASH FROM OPERATING ACTIVITIESGAAP $1,270 $1,461

Less: Capital expenditures (402) (354)

Add: Total pension contribution 45 49

Proceeds from sale of property, plant and equipment 18 22

MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONSNONGAAP $ 931 $1,178

8 Textron 2023 Annual Report

TEXTRON’S DIVERSE PRODUCT PORTFOLIO

Citation Longitude

Citation Latitude

Beechcraft

Denali

TEXTRON AVIATION

E-Z-GO RXV ELiTE Kautex Pentatonic Battery System

Jacobsen Eclipse 360 ELiTE

INDUSTRIAL

Pipistrel Velis Electro Pipistrel Panthera Pipistrel Nuuva V300

TEXTRON eAVIATION

Ship-to-Shore Connector Aerosonde

Mk. 4.8 HQ

Cottonmouth

TEXTRON SYSTEMS

Bell V-280 Valor Bell 429

BELL

CMV-22 Osprey

Textron 2023 Annual Report 1

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(State or other urisdiction of incorporation or organiation) (I.R.S. Employer Identification No.)

etmiteteet

iee 

(Address of principal executive offices) (Zip code)

Registrants Telephone Number, Including Area Code: 

Securities registered pursuant to Section 12(b) of the Act:

Titleala

Taiml

Nameaae

ieitee

Common Stock  par value 0.12 TXT New ork Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None



Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 40 of the Securities Act. xes ¨ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 1(d) of the Act . ¨ es x No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 1(d) of the Securities Exchange Act of 1934 during the

preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subect to such filing requirements for the

past 90 days. x es ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 40 of Regulation

S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x es ¨No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging

growth company. See definitions of large accelerated filer, accelerated filer, smaller reporting company and emerging growth company in Rule 12b-2 of

the Exchange Act (Check one):

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or

revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over

financial reporting under Section 404(b) of the Sarbanes-Oxley Act (1 .S.C. 722(b)) by the registered public accounting firm that prepared or issued its audit

report. ☒ es ¨ No

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing

reflect the correction of an error to previously issued financial statements ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any

of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b) ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ es ☒ No

The aggregate market value of the registrants Common Stock held by non-affiliates at July 1, 2023 was approximately 13.3 billion based on the New ork

Stock Exchange closing price for such shares on that date. The registrant has no non-voting common equity.

At February 3, 2024, 192,3,91 shares of Common Stock were outstanding.

metateeeee

Part III of this Report incorporates information from certain portions of the registrants Definitive Proxy Statement for its Annual Meeting of Shareholders to be

held on April 24, 2024.

2 Textron 2023 Annual Report

Tet

etaletm

teialeaeeeme

ae

T

Item 1. 3

Item 1A. 9

Item 1B. 1

Item 1C. 1

Item 2. 1

Item 3. 1

Item 4. 1

T

Item .

1

Item . 19

Item 7. 20

Item 7A. 32

Item . 33

Item 9. 9

Item 9A. 9

Item 9B. 71

Item 9C.

Business

Risk Factors

nresolved Staff Comments

Cybersecurity

Properties

Legal Proceedings

Mine Safety Disclosures

Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of

Equity Securities

Reserved

Managements Discussion and Analysis of Financial Condition and Results of Operations

uantitative and ualitative Disclosures About Market Risk

Financial Statements and Supplementary Data

Changes In and Disagreements ith Accountants on Accounting and Financial Disclosure

Controls and Procedures

Other Information

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

T

Item 10. Directors, Executive Officers and Corporate Governance 71

Item 11. Executive Compensation

Item 12.

Item 13.

Item 14.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Certain Relationships and Related Transactions and Director Independence 71

Principal Accountant Fees and Services 71

T

Item 1. 72

Item 1.

Exhibits and Financial Statement Schedules

Form 10-K Summary

7

Signatures 7

Textron 2023 Annual Report 3

Ttaleeeemet

Tetiati



tial



ell



Tettem



iae

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Teteiati



TtaleeetmeTe

mmeial



emet



The following description of our business and operating segments should be read in conunction with Item 7. Managements

Discussion and Analysis of Financial Condition and Results of Operations.

Tetiatiemet

Textron Aviation is a leader in general aviation. Textron Aviation manufactures, sells and services Cessna and Beechcraft aircraft,

and services the awker brand of business ets. The segment has two principal product lines: aircraft and aftermarket parts and

services. Aircraft includes sales of business ets, turboprop aircraft, military trainer and defense aircraft and piston engine aircraft.

Aftermarket parts and services includes commercial parts sales and maintenance, inspection and repair services.

Textron Aviations business ets include the Cessna Citation M2 Gen2, Citation CJ3 Gen2, Citation CJ4 Gen2, Citation XLS

Gen2, Citation Latitude and the Citation Longitude. Textron Aviations turboprop aircraft include the Beechcraft King Air 20,

King Air 30ER and King Air 30, and the Cessna Caravan, Grand Caravan EX and SkyCourier. In addition, Textron Aviations

military trainer and defense aircraft include the Beechcraft T- trainer, which has been used to train pilots from more than 40

countries, and the AT- light attack military aircraft, which has achieved military type certification from the .S. Air Force.

Textron Aviation also offers piston engine aircraft including the Beechcraft Baron G and Bonana G3, and the Cessna

Skyhawk, Skylane, Turbo Skylane, and Turbo Stationair D.

Textron Aviation markets its products worldwide through its own sales force, as well as through a network of authoried

independent sales representatives. ith a product lineup ranging from introductory training aircraft through super mid-sie

business ets, Textron Aviations diverse customer base includes fractional aircraft businesses, charter and fleet operators,

corporate aviation, individual buyers, training schools, airlines, and special mission, military and government operators.

In support of its family of aircraft, Textron Aviation operates a global network of more than 20 service centers, two of which are

co-located with Bell. In addition, more than 300 authoried independent service centers are located throughout the world. Textron

Aviation-owned service centers provide customers with 24-hour service and maintenance. Textron Aviation also provides its

customers with around-the-clock parts support and offers a mobile support program with over 0 mobile service units.

Textron Aviation is developing the Citation Ascend, a high-performance midsie business et, which is expected to enter into

service in 202. The Beechcraft Denali, a high-performance single engine turboprop aircraft also under development, achieved its

first flight in November 2021 and is in the certification process with the Federal Aviation Administration (FAA). The Denali will

be powered by an engine expected to be up to 20 more efficient than similarly sied engines.

T

temie

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to

provide customers with innovative products and services around the world. References to Textron Inc., the Company, we,

our and us in this Annual Report on Form 10-K, unless otherwise indicated, refer to Textron Inc. and its consolidated

subsidiaries.

e conduct our business through six operating segments: Textron Aviation, Bell, Textron Systems, Industrial and Textron

eAviation, which represent our manufacturing businesses, and Finance, which represents our captive finance business. Our

segments include numerous separately incorporated subsidiaries. Total revenues for 2023 were 13.7 billion and are presented

below by segment and customer type.

4 Textron 2023 Annual Report

ellemet

Bell is one of the leading suppliers of military and commercial helicopters, tiltrotor aircraft, and related spare parts and services in

the world. Tiltrotor aircraft are designed to provide the benefits of both helicopters and fixed-wing aircraft.

Bell supplies advanced military helicopters and provides parts and support services to the .S. Government and to military

customers outside the nited States. Bells maor .S. Government programs are for the production and support of V-22 tiltrotor

aircraft, primarily for the .S. Department of Defense the development of the V-20 Valor, a next generation tiltrotor aircraft for

the .S. Armys Future Long Range Assault Aircraft (FLRAA) program and production and support of -1 helicopters for the

.S. Marine Corps. nder the .S. Government-sponsored foreign military sales program, Bell offers the V-22 tiltrotor aircraft

and -1 helicopter products for sale to other countries.

The FLRAA development contract was awarded to Bell in December 2022 as part of the .S. Armys Future Vertical Lift (FVL)

initiative. Bell is developing a tiltrotor aircraft, based on the V-20 Valor, to meet .S. Army weapon system requirements. The

V-20 Valor first flew in December 2017 and has conducted over 200 hours of flight testing.

Bell is also developing a new rotorcraft, the Bell 30 Invictus, for the .S. Armys Future Attack Reconnaissance Aircraft

(FARA) Competitive Prototype Program, which is part of the .S. governments FVL initiative. In March 2020, the .S. Army

selected the 30 Invictus to move to the second phase of the Competitive Prototype Program. Bell continues to progress on its

development of the 30 Invictus Prototype under this phase of the cost-share program. On February , 2024, as part of plans to

rebalance its aviation moderniation investments, the .S. Army announced plans to discontinue development of the FARA at the

conclusion of F24 prototyping activities.

Through its commercial business, Bell is a leading supplier of commercially certified helicopters and support to corporate,

private, law enforcement, utility, public safety and emergency medical helicopter operators, and .S. and foreign governments.

Bell produces a variety of commercial aircraft types, including light single- and twin-engine helicopters and medium twin-engine

helicopters, along with other related products. The commercial helicopters currently offered by Bell include the 429, 407GXi,

412EPX and 0 Jet Ranger X. Bells first super medium commercial helicopter, the 2 Relentless, is currently in the

certification process with the FAA.

For both its military programs and its commercial products, Bell provides post-sale support and service for an installed base of

approximately 13,000 helicopters. Bell operates a global network of eight Company-operated service centers, two of which are

co-located with Textron Aviation, and four global parts distribution centers. In addition, approximately  independent service

centers are located in about 3 countries. Collectively, these service sites offer a complete range of logistics support, including

parts, support equipment, technical data, training devices, pilot and maintenance training, component repair and overhaul, engine

repair and overhaul, aircraft modifications, aircraft customiing, accessory manufacturing, contractor maintenance, field service

and product support engineering.

Tettememet

The businesses in our Textron Systems segment develop, manufacture and integrate a variety of products and services for .S.

and international military, government and commercial customers to support defense, homeland security, aerospace, infrastructure

protection and other customer missions. Product and service offerings of this segment include electronic systems and solutions,

advanced marine craft, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components,

unmanned aircraft systems and both manned and unmanned armored and specialty vehicles.

Notable products developed and produced by the Textron Systems segment include the Ship-to-Shore Connector, the .S. Navys

next generation of Landing Craft Air Cushion vehicles a family of test and simulation products Shadow, the .S. Armys

premier tactical unmanned aircraft system the Aerosonde Small nmanned Aircraft System, a multi-mission capable unmanned

aircraft system for commercial and military operations and piston aircraft engines under the Lycoming brand. Notable service

offerings of the segment include fee-for-service programs, using unmanned aircraft systems, and live military air-to-air and air-to-

ship training and support services for .S. Navy, Marine and Air Force personnel provided by Airborne Tactical Advantage

Company.

tialemet

Our Industrial segment designs and manufactures a variety of products within the Kautex and Specialied Vehicles product lines.

Kautex is a leader in designing and manufacturing plastic fuel systems for automobiles and light trucks, including blow-molded

solutions for conventional plastic fuel tanks and pressuried plastic fuel tanks for hybrid vehicle applications. Kautex also

develops and manufactures clear-vision systems for automotive safety and advanced driver assistance systems (ADAS). Our

cleaning systems are comprised of noles, reservoirs, inlets and pumps to support onboard cleaning for windscreens, headlamps

and ADAS cameras and sensors. In addition, Kautex produces plastic tanks for selective catalytic reduction systems used to

Textron 2023 Annual Report 5

reduce emissions from diesel engines, and other fuel system components. Kautex has also developed and begun to offer

lightweight, composite Pentatonic battery systems, which include enclosures, underbody protection and thermal management

systems, for use in electric vehicles, from hybrid to full battery-powered.

Kautexs business model is focused on developing and maintaining long-term customer relationships with leading global original

equipment manufacturers (OEMs). Kautex, which is headquartered in Bonn, Germany, operates over 30 plants in 13 countries in

close proximity to its customers, along with 9 engineering/research and development locations around the world.

Our Specialied Vehicles product line includes products sold by the Textron Specialied Vehicles businesses under our E-Z-GO,

Arctic Cat, TG Technologies, Douglas Equipment, Premier, Safeaero, Ransomes, Jacobsen and Cushman brands. These

businesses design, manufacture and sell golf cars off-road utility vehicles powersports products light transportation vehicles

aviation ground support equipment professional turf-maintenance equipment and specialied turf-care vehicles. A significant

portion of the products sold by these businesses are powered with lithium batteries, greatly reducing the products impact on the

environment.

The diversified customer base for the Specialied Vehicles product line includes golf courses and resorts, government agencies

and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users such as factories, warehouses, airlines,

planned communities, hunting preserves, educational and corporate campuses, sporting venues and landscaping professionals.

Sales are made through a network of independent distributors and dealers worldwide and the Bass Pro Shops and Cabelas retail

outlets, which sell our products under the Tracker Off Road brand, as well as factory direct resources. In addition, we also

manufacture products for OEMs for resale to customers under the OEMs branding.

Teteiatiemet

Our Textron eAviation segment includes Pipistrel, a manufacturer of light aircraft, along with other research and development

initiatives related to sustainable aviation solutions. Pipistrel offers a family of light aircraft and gliders with both electric and

combustion engines. Pipistrels Velis Electro is the worlds first, and currently only, electric aircraft to receive full type

certification from the European nion Aviation Safety Agency and from the K Civil Aviation Authority.

iaeemet

Our Finance segment, or the Finance group, is a commercial finance business that consists of Textron Financial Corporation

(TFC) and its consolidated subsidiaries. The Finance segment provides financing primarily to purchasers of new and pre-owned

Textron Aviation aircraft and Bell helicopters. A substantial number of the originations in our finance receivable portfolio are

cross-border transactions for aircraft sold outside of the .S. In 2023 and 2022, our Finance group made payments of 10

million and 92 million, respectively, to finance the Manufacturing groups sale of Textron-manufactured products to third

parties.

al

Backlog represents amounts allocated to contracts that we expect to recognie as revenue in future periods when we perform

under the contracts. Backlog excludes unexercised contract options and potential orders under ordering-type contracts, such as

Indefinite Delivery, Indefinite uantity contracts.

Our backlog at the end of 2023 and 2022 is summaried below:

(In millions)

eeme



eeme



Textron Aviation  7,19  ,37

Bell 4,70 4,71

Textron Systems 1,90 2,09

Total backlog  13,99  13,2

emettatateemetalelati

Our operations, products and services are subect to various government regulations, including regulations related to .S.

government business, international regulation of aviation products and services, and environmental regulations.

Contracts with the .S. Government, including contracts under the .S. Government-sponsored foreign military sales program,

generated approximately 21 of our consolidated revenues in 2023, primarily in our Bell and Textron Systems segments. e

must comply with and are affected by laws and regulations relating to the formation, administration and performance of .S.

Government contracts. These laws and regulations, among other things, require certification and disclosure of all cost and pricing

data in connection with contract negotiation define allowable and unallowable costs and otherwise govern our right to

reimbursement under certain cost-based .S. Government contracts and safeguard and restrict the use and dissemination of



6 Textron 2023 Annual Report

classified and covered defense information and the export of certain products and technical data. New laws, regulations or

procurement requirements, or changes to current ones, can significantly increase our costs, reducing our profitability.

Our contracts with the .S. Government generally may be terminated by the .S. Government for convenience or if we default in

whole or in part by failing to perform under the terms of the applicable contract. If the .S. Government terminates a contract for

convenience, we normally will be entitled to payment for the cost of contract work performed before the effective date of

termination, including, if applicable, reasonable profit on such work, as well as reasonable termination costs. If, however, the .S.

Government terminates a contract for default, generally: (a) we will be paid the contract price for completed supplies delivered

and accepted and services rendered, an agreed-upon amount for manufacturing materials delivered and accepted and for the

protection and preservation of property, and an amount for partially completed products accepted by the .S. Government (b) the

.S. Government may not be liable for our costs with respect to unaccepted items and may be entitled to repayment of advance

payments and progress payments related to the terminated portions of the contract (c) the .S. Government may not be liable for

assets we own and utilie to provide services under the fee-for-service contracts and (d) we may be liable for excess costs

incurred by the .S. Government in procuring undelivered items from another source. See Aerospace and Defense Industry

section in Item 1A. Risk Factors for additional information related to regulation of .S. Government business.

Our commercial aircraft manufacturing businesses are regulated by the FAA in the .S. and by similar aviation regulatory

governing authorities internationally, including, the European Aviation Safety Agency. Maintenance facilities and aftermarket

services must also comply with FAA and international regulations. These regulations address production and quality systems,

airworthiness and installation approvals, repair procedures and continuing operational safety. For an aircraft to be manufactured

and sold, the model must receive a type certificate from the appropriate aviation authority, and each aircraft must receive a

certificate of airworthiness. Aircraft outfitting and completions also require approval by the appropriate aviation authority. See

Strategic Risks section in Item 1A. Risk Factors for additional information with respect to risks related to obtaining certification

of new aircraft products.

Our operations are subect to numerous laws and regulations designed to protect the environment. For additional information

regarding environmental matters, see Note 1 to the Consolidated Financial Statements in Item . Financial Statements and

Supplementary Data, and Business and Operational Risks and Risks Related to Regulatory, Legal and Other Matters sections in

Item 1A. Risk Factors.

Based on current information and the applicable laws and regulations currently in effect, compliance with government

regulations, including environmental regulations, has not had, and we do not expect it to have, a material effect on our capital

expenditures, earnings or competitive position. owever, laws and regulations may be changed or adopted that impose additional

compliance requirements which could necessitate capital expenditures or otherwise increase our costs of doing business, reducing

our profitability and negatively impacting our operating results.

maaitalee

At December 30, 2023, we employed approximately 3,000 employees worldwide, with approximately 0 located in the .S.

and the remainder located outside of the .S. Approximately 7,400, or 27, of our .S. employees, most of whom work for our

Bell and Textron Aviation segments, are represented by unions under collective bargaining agreements, and certain of our non-

.S. employees are represented by organied works councils. From time to time our collective bargaining agreements expire.

istorically, we have been successful in negotiating renewals to expiring agreements without any material disruption of operating

activities, and management considers employee relations to be good.

Our success is highly dependent upon our ability to hire and retain a workforce with the skills necessary for our businesses to

develop and manufacture the products desired by our customers. e need highly skilled personnel in multiple areas including,

among others, engineering, manufacturing, information technology, cybersecurity, flight operations, business development and

strategy and management. In order to attract and retain highly skilled employees, we offer comprehensive compensation and

benefit programs, career opportunities and an engaging, inclusive environment where all employees are treated with dignity and

respect.

l n 

The health and safety of our employees, contractors and communities is a priority, and we strive to provide our employees with

healthy working conditions and safe facilities. To maintain and enhance the safety of our employees, we promote a workplace

safety culture of continuous improvement, shared responsibility, and individual accountability e use an annual goal setting

process to drive inury rate improvements, and the inury rate reduction goal is a performance metric that is tracked and reported

to senior leadership and the Audit Committee of the Board of Directors.



Textron 2023 Annual Report 7

ln n  lomn

Our talent development programs are designed to prepare our employees at all levels to take on new career and growth

opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their

careers and include a mix of enterprise-wide and business unit-specific programs. Textron niversity, an internal corporate

function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and

specialied functional and technical courses and (iii) an online portal to access advanced skills technical training, manage

recertification of existing qualifications and other career planning tools and resources.

The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which

enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,

leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These

processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with

opportunities that best fit their career path, which may be in other businesses within the enterprise.

Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. e believe by

employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,

innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as

leaders in our industries and communities.

For discussion of certain risks relating to human capital management, see Risks Related to uman Capital section in Item 1A.

Risk Factors.

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e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of

manufacturing. Patents developed while under contract with the .S. Government may be subect to use by the .S. Government.

e also own or license active trademark registrations and pending trademark applications in the .S. and in various foreign

countries or regions, as well as trade names and service marks. hile our intellectual property rights in the aggregate are

important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual

property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a

whole.

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The following table sets forth certain information concerning our executive officers as of February 12, 2024.

Name e etitiitTet

Scott C. Donnelly 2 Chairman, President and Chief Executive Officer

Frank T. Connor 4 Executive Vice President and Chief Financial Officer

Julie G. Duffy  Executive Vice President and Chief uman Resources Officer

E. Robert Lupone 4 Executive Vice President, General Counsel, Secretary and Chief Compliance Officer

Mr. Donnelly oined Textron in June 200 as Executive Vice President and Chief Operating Officer and was promoted to

President and Chief Operating Officer in January 2009. e was appointed to the Board of Directors in October 2009 and became

Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of

Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Companys

Aviation business unit, a position he had held since July 200. GEs Aviation business unit is a leading maker of commercial and

military et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to

July 200, Mr. Donnelly served as Senior Vice President of GE Global Research, one of the worlds largest and most diversified

industrial research organiations with facilities in the .S., India, China and Germany and held various other management

positions since oining General Electric in 199.

Mr. Connor oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was

head of Telecom Investment Banking at Goldman, Sachs  Co. from 2003 to 200. Prior to that position, he served as Chief

Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs  Co. from 199 to 2003.

Mr. Connor oined the Corporate Finance Department of Goldman, Sachs  Co. in 19 and became a Vice President in 1990 and

a Managing Director in 199.

Ms. Duffy was named Executive Vice President, uman Resources in July 2017 and Executive Vice President and Chief uman

Resources Officer in April 2022. Ms. Duffy oined Textron in 1997 as a member of the corporate legal team and has since held

positions of increasing responsibility within the Companys legal function, previously serving as Vice President and Deputy

General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate