Textron's (TXT) Fleet of Cessna Piston Jets Enters Into Service

Textron Inc. TXT recently announced that a handful of upgraded aircraft from its Cessna fleet of jets have entered into service following their first delivery.  These aircraft are the Cessna Skyhawk, Cessna Skylane, Turbo Skylane and Turbo Stationair.  These should enhance TXT’s position in the expanding commercial aircraft market.

With this latest upgrade, Textron aims at offering its commercial customers a fleet of jets that have a modern and appealing tone like that of the newest Cessna Citation jets while maintaining the iconic Cessna piston line's well-known comfort, durability and performance.

What’s New?

With new features and design aspects, Cessna aircraft remain adaptable and dependable tools that allow TXT’s customers to complete a variety of missions, ranging from pilot training to business travel. The upgraded jets, which have started service recently, offer new interior design features like comfy seats with added support and padding, each seat having a power headset jack and USB charging ports for both A and C types.

The planes also include sleek black instrument panels and thoughtfully positioned side and cell phone pockets throughout. Equipped aircraft have integrated overhead air conditioning and a new center armrest available on certain models.

TXT’s Growth Prospects in Business Aviation

It is imperative to mention that the Morder Intelligence firm expects the global business jet market to witness a CAGR of 4% during the 2024-2028 period.

Such growth prospects should benefit Textron, with its Textron Aviation segment being one of the prominent business jet makers like Cessna Citation. Among recent developments in this business line, a notable one is that in September, NetJets agreed to purchase up to 1,500 additional Citation business jets over the next 15 years. Such order wins and new jet introductions like the latest one should boost TXT’s future revenue growth.

Opportunities for Peers

Along with TXT, aerospace companies like Boeing BA, Airbus Group EADSY and General Dynamics GD are also expanding their operations to reap the benefits of the growing demand of the business jet market.

Boeing has been the premier manufacturer of corporate jetliners for decades. Its BBJ 787 is a large business jet featuring a composite airframe and low cabin altitude system. Its BBJ 737-7 is the longest-range, non-widebody business jet in its class, which can fly 6,600 nautical miles (12,200 km) nonstop.

Boeing has a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2024 sales suggests growth of 9.6% from the prior-year reported figure.

Airbus’ business unit, Airbus Corporate Jets (“ACJ”), manufactures and markets business jet variants of the company’s airliners. Its portfolio includes corporate jets like ACJ TwoTwenty, ACJneo, ACJ33neo and ACJ350.

Airbus Group has a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for EADSY’s 2024 sales suggests growth of 9.5% from the prior-year reported figure.

General Dynamics’ Aerospace segment is recognized as a leading producer of business jets.  Its Gulfstream G800 is the world’s longest range of business aircraft, while the G700 offers the most spacious cabin in the business aviation industry. In March 2024, the G700 executive jet obtained its type certification from the Federal Aviation Administration, while the G800 is expected to enter into service approximately six months after the G700.

General Dynamics has a long-term earnings growth rate of 10.8%. The Zacks Consensus Estimate for GD’s 2024 sales suggests growth of 10% from the prior-year reported figure.

Price Movement

In the past three months, shares of Textron have increased 19% against the industry’s decline of 7.1%.

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Image Source: Zacks Investment Research

Zacks Rank

Textron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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