Our aviation portfolio has been largely successful as we've developed it over the years, but currently, it relies a little too heavily on the biggest names in the sector (i.e. see United & Delta). If we're going to have long-term success, we need to make sure we have diversified mid-tier names in the sector as well.
Which is why we're excited to initiate coverage in Textron Inc ($TXT), an aviation conglomerate that has been firing on all cylinders for the past year.
In the mid-cap space, companies need as many paths to growth as possible. And Textron is a rare breed, as a lot of their holdings have had breakout years independent of each other.
Textron is a small-jet kingpin that is flying high on a new resurgence of business travel demand.
Their brand of VTOL (vertical take-off and landing) is surging toward dominance as the Defense Department is finding new uses for the V-22 Osprey. More importantly, Textron is also the winner of a massive contract that will set them up to deliver a spiritual evolution of the Osprey to replace the Blackhawk Helicopter system that has been the workhorse for the U.S. military for decades.
And on the growth end of things, Textron's eVTOL (electric vertical take-off and landing) business is gathering steam in a big way, generating a lot of incredible 5-year growth prospects as industry leaders continue to shape expectations around that new frontier.
With EBITDA up across the board and a new contract with NetJets to deliver 1,500 Cessna Citation vehicles in place, Textron is setting itself up to be a cash flow powerhouse in an uncertain macro environment.
So let's dive into what's lifting Textron stock this year and see just how far they can grow with better-managed costs and outputs. 👇