TEXTRON INC

Previous wording

Recent changes to the United States trade policy have resulted in new or higher tariffs on goods imported from numerous countries, and some countries have imposed retaliatory tariffs on imports from the United States. We are principally a North American manufacturer and 71% of our 2024 revenues were generated in the U.S. Our aircraft products, subassemblies, parts and components manufactured in Canada and Mexico are largely qualified under the rules of the United States-Mexico-Canada Agreement (USMCA) for preferential treatment on tariffs imposed by the U.S. on Canada and Mexico imports. In addition, our operations outside of North America primarily source materials and components from outside of North America and manufacture products for non-U.S. customers. Many of our businesses also source materials and components from outside of North America. These businesses have been – or could be in the future – impacted by these newly imposed U.S. tariffs. To date, we have not experienced a material adverse impact from these tariffs. We will continue to evaluate the potential impact of these tariffs and any further developments or changes in global tariff policies on our business and financial position.

Current wording

Changes to the United States trade policy have resulted in new or higher tariffs on goods imported from numerous countries, and some countries have imposed retaliatory tariffs on imports from the United States. We are principally a North American manufacturer and 71% of our 2024 revenues were generated in the U.S. Our aircraft products, subassemblies, parts and components manufactured in Canada and Mexico are largely qualified under the rules of the United States-Mexico-Canada Agreement (USMCA) for preferential treatment on tariffs imposed by the U.S. on Canada and Mexico imports. In addition, our operations outside of North America primarily source materials and components from outside of North America and manufacture products for non-U.S. customers. Many of our businesses also source materials and components from outside of North America. These businesses have been and will continue to be impacted by these imposed U.S. tariffs. In order to mitigate these impacts our businesses have been managing, and will continue to manage, pricing and supply chain optimization strategies. In addition, our aircraft businesses have begun the tariff reconciliation and refund process with the U.S. Government to recover tariff costs that were previously paid related to materials and components that were subsequently determined to be USMCA compliant. To date, we have not experienced a material adverse impact from these tariffs. We will continue to evaluate the ongoing impact of these tariffs and any further developments or changes in global tariff policies on our business and financial position.

Previous wording

An analysis of our consolidated operating results is set forth below. A more detailed analysis of our segments’ operating results is provided in the Segment Analysis section on pages 24 to 27.

Current wording

An analysis of our consolidated operating results is set forth below. A more detailed analysis of our segments’ operating results is provided in the Segment Analysis section on pages 24 to 28.

Previous wording

Revenues increased $189 million, 5%, in the second quarter of 2025, compared with the second quarter of 2024. The revenue increase primarily included the following factors:

Current wording

Revenues increased $175 million, 5%, in the third quarter of 2025, compared with the third quarter of 2024. The revenue increase primarily included the following factors:

Previous wording

•Higher Textron Aviation revenues of $66 million, reflecting higher aftermarket parts and services revenues of $34 million and higher aircraft revenues of $32 million.

Current wording

•Higher Textron Aviation revenues of $138 million, reflecting higher aircraft revenues of $116 million and higher aftermarket parts and services revenues of $22 million.

Previous wording

•Higher Bell revenues of $222 million due to higher military aircraft and support programs revenues of $149 million, primarily for the Future Long Range Assault Aircraft (FLRAA) program, recently designated as MV-75 by the U.S. Army, and higher commercial revenues of $73 million.

Current wording

•Higher Bell revenues of $97 million due to higher military aircraft and support programs revenues of $128 million, primarily for the Future Long Range Assault Aircraft (FLRAA) program, now designated as MV-75 by the U.S. Army, partially offset by lower commercial revenues of $31 million.

Previous wording

•Lower Industrial revenues of $75 million, with $66 million at Textron Specialized Vehicles, reflecting the impact from the disposition of the Powersports business in April 2025, as discussed in Note 12 to the Consolidated Financial Statements and lower volume, primarily in golf products.

Current wording

•Lower Industrial revenues of $79 million, due to lower revenues of $97 million at Textron Specialized Vehicles, largely reflecting the impact from the disposition of the Powersports business in April 2025 as discussed in Note 12 to the Consolidated Financial Statements, partially offset by higher revenues of $18 million at Kautex.

Previous wording

Revenues increased $360 million, 5%, in the first half of 2025, compared with the first half of 2024. The revenue increase primarily included the following factors:

Current wording

Revenues increased $535 million, 5%, in the first nine months of 2025, compared with the first nine months of 2024. The revenue increase primarily included the following factors:

Previous wording

•Higher Bell revenues of $478 million, due to higher military aircraft and support programs revenues of $303 million, primarily for the MV-75 program and for military sustainment programs, as well as higher commercial revenues of $175 million.

Current wording

•Higher Bell revenues of $575 million, due to higher military aircraft and support programs revenues of $431 million, primarily for the MV-75 program and for military sustainment programs, as well as higher commercial revenues of $144 million.

Previous wording

•Higher Textron Aviation revenues of $42 million, largely reflecting higher aircraft revenues of $35 million.

Current wording

•Higher Textron Aviation revenues of $204 million, reflecting higher aircraft revenues of $148 million and higher aftermarket parts and services revenues of $56 million.

Previous wording

•Lower Industrial revenues of $175 million, with $128 million at Textron Specialized Vehicles, reflecting lower volume and mix, primarily in golf products, and the impact from the disposition. Kautex revenues decreased $47 million, largely due to lower volume.

Current wording

•Lower Industrial revenues of $254 million, with $225 million at Textron Specialized Vehicles, largely reflecting the impact from the disposition and lower volume and mix, primarily in golf products. Kautex revenues decreased $29 million, largely due to lower volume.

Previous wording

•Lower Textron Systems revenues of $12 million, largely due to lower volume.

Current wording

•Lower Textron Systems revenues of $6 million, largely due to lower volume.

Previous wording

Manufacturing group revenues increased $186 million and $356 million in the second quarter and first half of 2025, respectively, compared with the corresponding periods of 2024, reflecting an increase of $355 million and $694 million, respectively, in product revenues, partially offset by a decrease of $169 million and $338 million, respectively, in service revenues. The decrease in service revenues for both periods was largely related to the classification of revenues for the MV-75 program, which was service-related prior to the transition of the program to the Engineering and Manufacturing Development phase in the third quarter of 2024 when it became product-related.

Current wording

Manufacturing group revenues increased $161 million and $517 million in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, largely reflecting an increase of $159 million and $853 million, respectively, in product revenues. The increase in product revenues in the first nine months of 2025 was partially offset by a decrease of $336 million in service revenues, largely related to the classification of revenues for the MV-75 program, which was service-related prior to the transition of the program to the Engineering and Manufacturing Development phase in the third quarter of 2024 when it became product-related.

Previous wording

Cost of sales includes cost of products and services sold for the Manufacturing group. Cost of sales increased $173 million, 6%, in the second quarter of 2025, compared with the second quarter of 2024, largely due to higher net volume and mix of $136 million and a $74 million impact from inflation and higher LIFO inventory provision, partially offset by the impact from the disposition of the Powersports business.

Current wording

Cost of sales includes cost of products and services sold for the Manufacturing group. Cost of sales increased $139 million, 5%, in the third quarter of 2025, compared with the third quarter of 2024, largely due to higher net volume and mix of $143 million and a $61 million impact from inflation, partially offset by the impact from the disposition of the Powersports business.

Previous wording

Cost of sales increased $375 million, 7%, in the first half of 2025, compared with the first half of 2024, largely due to higher net volume and mix of $258 million and a $133 million impact from inflation and higher LIFO inventory provision, partially offset by the impact from the disposition. Gross margin as a percentage of Manufacturing revenues decreased 130 basis points in the first half of 2025, primarily due to lower margin at the Bell and Textron Aviation segments.

Current wording

Cost of sales increased $514 million, 6%, in the first nine months of 2025, compared with the first nine months of 2024, largely due to higher net volume and mix of $401 million and a $193 million impact from inflation and higher LIFO inventory provision, partially offset by the impact from the disposition. Gross margin as a percentage of Manufacturing revenues decreased 90 basis points in the first nine months of 2025, primarily due to lower margin at the Bell segment.

Previous wording

Research and development costs increased $20 million, 8%, in the first half of 2025, compared with the first half of 2024, largely due to an increase of $31 million at Bell, reflecting lower costs in 2024 due to the wind down of the Future Attack Reconnaissance Aircraft program, partially offset by a $10 million decrease at the Textron Systems segment related to timing of project expenditures.

Current wording

Research and development costs decreased $8 million, 6%, in the third quarter of 2025, and increased $12 million, 3%, in the first nine months of 2025, compared with the corresponding periods of 2024. The higher research and development costs in the first nine months of 2025 included an increase of $32 million at Bell, reflecting lower costs in 2024 due to the wind down of the Future Attack Reconnaissance Aircraft program, partially offset by a decrease of $10 million at each of the Textron Systems and Textron eAviation segments.

Previous wording

Selling and administrative expense decreased $8 million, 1%, in the first half of 2025, compared with the first half of 2024, primarily due to lower share-based compensation expense, partially offset by a 2024 recovery of amounts that were previously written off related to one customer relationship in the Finance segment.

Current wording

Selling and administrative expense decreased $25 million, 9%, and $33 million, 4%, in the third quarter and first nine months of 2025, compared with the corresponding periods of 2024, primarily due to a $16 million gain resulting from the early termination of a vendor contract in the third quarter of 2025 at the Textron Systems segment. The decrease in expense in the first nine months of 2025 also included lower share-based compensation expense, partially offset by a 2024 recovery of amounts that were previously written off related to one customer relationship in the Finance segment.

Previous wording

Interest expense, net includes interest expense for both the Finance and Manufacturing borrowing groups, with interest on intercompany borrowings eliminated, and interest income earned on cash and equivalents for the Manufacturing borrowing group. In the second quarter and first half of 2025, interest expense, net increased $6 million, 24%, and $15 million, 33%, respectively, compared with the corresponding periods of 2024, primarily reflecting lower interest income. Gross interest expense totaled $39 million and $36 million in the second quarter of 2025 and 2024, respectively, and $77 million and $74 million in the first half of 2025 and 2024, respectively.

Current wording

Interest expense, net includes interest expense for both the Finance and Manufacturing borrowing groups, with interest on intercompany borrowings eliminated, and interest income earned on cash and equivalents for the Manufacturing borrowing group. In the third quarter and first nine months of 2025, interest expense, net increased $4 million, 15%, and $19 million, 27%, respectively, compared with the corresponding periods of 2024. The increase in expense in the first nine months of 2025 primarily reflected lower interest income. Gross interest expense totaled $39 million and $36 million in the third quarter of 2025 and 2024, respectively, and $116 million and $110 million in the first nine months of 2025 and 2024, respectively.

Previous wording

Our effective tax rate was 18.6% and 19.5% in the second quarter of 2025 and 2024, respectively, and 16.6% and 17.7% for the first half of 2025 and 2024, respectively. Our effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.

Current wording

In the third quarter of 2024, the effective tax rate was lower than the U.S. federal statutory rate, largely due to the favorable impact of research and development credits and foreign tax credits. Our effective tax rate for the first nine months of 2024 was lower than the U.S. federal statutory rate largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.

Previous wording

Textron Aviation’s revenues increased $42 million, 3%, in the second quarter of 2025, compared with the second quarter of 2024, reflecting higher aircraft revenues of $35 million and higher aftermarket parts and services revenues of $7 million. The increase in aircraft revenues was largely due to higher Citation jet and piston engine aircraft volume and higher pricing, partially offset by lower commercial turboprop volume. We delivered 49 Citation jets and 34 commercial turboprops in the second quarter of 2025, compared with 42 Citation jets and 44 commercial turboprops in the second quarter of 2024.

Current wording

Textron Aviation’s revenues increased $138 million, 10%, in the third quarter of 2025, compared with the third quarter of 2024, reflecting higher aircraft revenues of $116 million and higher aftermarket parts and services revenues of $22 million. The increase in aircraft revenues was largely due to higher volume and mix, which included higher commercial turboprop and Citation jet volume, partially offset by lower defense volume. The higher volume and mix also reflects the impact of the strike in the third quarter of 2024. We delivered 42 Citation jets and 39 commercial turboprops in the third quarter of 2025, compared with 41 Citation jets and 25 commercial turboprops in the third quarter of 2024.

Previous wording

Textron Aviation’s revenues increased $66 million, 2%, in the first half of 2025, compared with the first half of 2024, reflecting higher aftermarket parts and services revenues of $34 million and higher aircraft revenues of $32 million. The increase in aircraft revenues was primarily due to higher pricing, partially offset by lower volume and mix. The decrease in volume and mix largely reflects the mix of Citation jets and commercial turboprops sold, partially offset by higher defense and piston engine aircraft volume. We delivered 80 Citation jets and 64 commercial turboprops in the first half of 2025, compared with 78 Citation jets and 64 commercial turboprops in the first half of 2024.

Current wording

Textron Aviation’s revenues increased $204 million, 5%, in the first nine months of 2025, compared with the first nine months of 2024, reflecting higher aircraft revenues of $148 million and higher aftermarket parts and services revenues of $56 million. The increase in aircraft revenues was primarily due to higher pricing and higher volume and mix. The increase in volume and mix largely reflects higher piston engine aircraft and commercial turboprop volume, partially offset by the mix of Citation jets sold. The higher volume and mix also reflects the impact of the strike in the third quarter of 2024. We delivered 122 Citation jets and 103 commercial turboprops in the first nine months of 2025, compared with 119 Citation jets and 89 commercial turboprops in the first nine months of 2024.

Previous wording

Textron Aviation’s cost of sales increased $52 million, 5%, in the second quarter of 2025, compared with the second quarter of 2024, largely reflecting inflation of $43 million and higher warranty costs, partially offset by a favorable impact from manufacturing efficiencies. Cost of sales increased $90 million, 4%, in the first half of 2025, compared with the first half of 2024, largely reflecting inflation of $78 million and higher warranty costs.

Current wording

Textron Aviation’s cost of sales increased $99 million, 9%, in the third quarter of 2025, compared with the third quarter of 2024, largely reflecting higher aircraft volume and inflation of $38 million. Cost of sales increased $189 million, 6%, in the first nine months of 2025, compared with the first nine months of 2024, largely reflecting inflation of $116 million, higher aircraft volume and higher warranty costs.

Previous wording

Textron Aviation's segment profit decreased $31 million, 9%, in the first half of 2025, compared with the first half of 2024, primarily due to lower net volume and mix described above and higher warranty costs, partially offset by higher pricing, net of inflation.

Current wording

Textron Aviation's segment profit increased $20 million, 4%, in the first nine months of 2025, compared with the first nine months of 2024, primarily due to higher pricing, net of inflation, lower selling and administrative costs and higher aircraft volume and mix, partially offset by higher warranty costs.

Previous wording

Bell’s military aircraft and support programs revenues increased $149 million, 30%, in the second quarter of 2025, compared with the second quarter of 2024, largely due to higher volume on the FLRAA program, recently designated as MV-75 by the U.S. Army. Commercial helicopters, parts and services revenues increased $73 million, 25%, in the second quarter of 2025, compared with the second quarter of 2024, primarily due to the mix of commercial helicopters sold as we delivered 32 commercial helicopters in both the second quarter of 2025 and 2024.

Current wording

Bell’s military aircraft and support programs revenues increased $128 million, 23%, in the third quarter of 2025, compared with the third quarter of 2024, largely due to higher volume on the FLRAA program, now designated as MV-75 by the U.S. Army. Commercial helicopters, parts and services revenues decreased $31 million, 8%, in the third quarter of 2025, compared with the third quarter of 2024, as we delivered 30 commercial helicopters in the third quarter of 2025, compared with 44 commercial helicopters in the third quarter of 2024.

Previous wording

Bell’s military aircraft and support programs revenues increased $303 million, 31%, in the first half of 2025, compared with the first half of 2024, largely due to higher volume on the MV-75 program and on military sustainment programs. Commercial helicopters, parts and services revenues increased $175 million, 32%, in the first half of 2025, compared with the first half of 2024, primarily due to higher volume and mix as we delivered 61 commercial helicopters in the first half of 2025, compared with 50 commercial helicopters in the first half of 2024.

Current wording

Bell’s military aircraft and support programs revenues increased $431 million, 28%, in the first nine months of 2025, compared with the first nine months of 2024, largely due to higher volume on the MV-75 program and on military sustainment programs. Commercial helicopters, parts and services revenues increased $144 million, 16%, in the first nine months of 2025, compared with the first nine months of 2024, primarily due to the mix of aircraft sold. We delivered 91 commercial helicopters in the first nine months of 2025, compared with 94 commercial helicopters in the first nine months of 2024.

Previous wording

Bell's segment profit increased $8 million, 5%, in the first half of 2025, compared with the first half of 2024, while its profit margin decreased 220 basis points, largely reflecting the impact of the higher research and development costs and higher volume on lower margin MV-75 development activities, partially offset by favorable commercial aircraft volume and mix.

Current wording

Bell’s segment profit decreased $6 million, 6%, in the third quarter of 2025, compared with the third quarter of 2024, and its profit margin decreased 150 basis points, primarily reflecting higher volume on lower margin MV-75 development activities.

Previous wording

Bell’s segment profit decreased $2 million, 2%, in the second quarter of 2025, compared with the second quarter of 2024, primarily reflecting higher research and development costs described above, partially offset by higher volume and mix. Bell's profit margin decreased 240 basis points, largely reflecting the impact of the higher research and development costs and higher volume on lower margin MV-75 development activities, partially offset by favorable commercial aircraft volume and mix.

Current wording

Bell's segment profit increased $2 million, 1%, in the first nine months of 2025, compared with the first nine months of 2024, primarily due to higher net volume and mix, partially offset by higher research and development costs and manufacturing inefficiencies. Bell's profit margin decreased 190 basis points, largely reflecting higher research and development costs and higher volume on lower margin MV-75 development activities.

Previous wording

Textron Systems’ revenues decreased $2 million, 1%, and $12 million, 2%, in the second quarter and first half of 2025, respectively, compared with the corresponding periods of 2024, largely due to lower volume. The lower volume included the impact of the cancellation of the Shadow program and termination of certain U.S. Government development programs, offset by higher volume for the Ship-to-Shore Connector program.

Current wording

Textron Systems’ revenues decreased $6 million, 1%, in the first nine months of 2025, compared with the first nine months of 2024, largely due to lower volume. The decrease in volume included the impact of the cancellation of the Shadow program and termination of certain U.S. Government development programs, offset by higher volume on the Ship-to-Shore Connector program.

Previous wording

Textron Systems’ research and development costs were unchanged in the second quarter of 2025, and decreased $10 million, 30%, in the first half of 2025, compared with the corresponding periods of 2024. The decrease in costs in the first half of 2025 was related to the timing of project expenditures.

Current wording

Textron Systems’ research and development costs was unchanged in the third quarter of 2025, and decreased $10 million, 23%, in the first nine months of 2025, compared with the corresponding periods of 2024. The decrease in costs in the first nine months of 2025 was primarily due to a reduction in costs on certain U.S. Government development programs.

Previous wording

Industrial segment revenues decreased $75 million, 8%, in the second quarter of 2025, compared with the second quarter of 2024, largely at Textron Specialized Vehicles. Revenues decreased $66 million, 16%, at Textron Specialized Vehicles, reflecting the impact from the disposition of the Powersports business in April 2025, as discussed in Note 12 to the Consolidated Financial Statements, and lower volume, primarily in golf products.

Current wording

Industrial segment revenues decreased $79 million, 9%, in the third quarter of 2025, compared with the third quarter of 2024. Revenues decreased $97 million, 25%, at Textron Specialized Vehicles, largely reflecting an $88 million impact from the disposition of the Powersports business in April 2025, as discussed in Note 12 to the Consolidated Financial Statements. Kautex revenues increased $18 million, 4%, primarily due to higher volume.

Previous wording

Industrial segment revenues decreased $175 million, 10%, in the first half of 2025, compared with the first half of 2024, largely due to lower volume and mix and the impact from the disposition. Textron Specialized Vehicles' revenues decreased $128 million, 15%, reflecting lower volume and mix, primarily in golf products, and the impact from the disposition. Kautex revenues decreased $47 million, 5%, largely due to lower volume.

Current wording

Industrial segment revenues decreased $254 million, 10%, in the first nine months of 2025, compared with the first nine months of 2024. Textron Specialized Vehicles' revenues decreased $225 million, 19%, largely reflecting a $123 million impact from the disposition and lower volume and mix, primarily in golf products. Kautex revenues decreased $29 million, 2%, largely due to lower volume.

Previous wording

Industrial's cost of sales decreased $77 million, 10%, in the second quarter of 2025, compared with the second quarter of 2024, principally reflecting the impact from the disposition and lower volume described above. Cost of sales decreased $157 million, 10%, in the first half of 2025, compared with the first half of 2024, principally reflecting the impact of lower volume and mix described above and the impact from the disposition.

Current wording

Industrial's cost of sales decreased $68 million, 9%, and $225 million, 10%, in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, principally reflecting the impact from the disposition. The decrease in cost of sales in the first nine months of 2025 also included the impact from lower volume.

Previous wording

Industrial's selling and administrative expense decreased $12 million, 15%, in the second quarter of 2025, compared with the second quarter of 2024, primarily reflecting the impact from the disposition and lower compensation costs, which included the impact of headcount reductions from restructuring activities. Selling and administrative expense decreased $27 million, 16%, in the first half of 2025, compared with the first half of 2024, primarily reflecting lower compensation costs, which included the impact of headcount reductions from restructuring activities and the impact from the disposition.

Current wording

Industrial's selling and administrative expense decreased $9 million, 13%, and $36 million, 15%, in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, primarily reflecting the impact from the disposition. The decrease in expense in the first nine months of 2025 also reflected lower compensation costs, which included the impact of headcount reductions from restructuring activities.

Previous wording

Industrial's segment profit increased $12 million, 29%, in the second quarter of 2025, compared with the second quarter of 2024, primarily reflecting the impact from the disposition and cost reductions resulting from restructuring activities, partially offset by lower volume and mix described above.

Current wording

Industrial's segment profit decreased $1 million, 3%, in the third quarter of 2025, and increased $12 million, 12%, in the first nine months of 2025, compared with the corresponding periods of 2024. The increase in segment profit for the first nine months of 2025 primarily reflected the impact from the disposition and cost reductions resulting from restructuring activities, partially offset by lower volume and mix described above and inflation, net of pricing.

Previous wording

Finance segment revenues increased $3 million and $4 million in the second quarter and first half of 2025, respectively, compared with the corresponding periods of 2024. Segment profit increased $1 million and decreased $7 million in the second quarter and first half of 2025, respectively, compared with the corresponding periods of 2024. Selling and administrative expense in the first half of 2024 included an $8 million recovery of amounts that were previously written off related to one customer relationship.

Current wording

Finance segment revenues increased $14 million and $18 million and segment profit increased $13 million and $6 million in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024. The increase in revenues and segment profit for both periods included $11 million of gains on the disposition of non-captive assets in the third quarter of 2025. Selling and administrative expense in the first nine months of 2024 included an $8 million recovery of amounts that were previously written off related to one customer relationship.

Previous wording

Textron has a senior unsecured revolving credit facility for an aggregate principal amount of $1.0 billion, of which $100 million is available for the issuance of letters of credit. We may elect to increase the aggregate amount of commitments under the facility to up to $1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility expires in October 2027 and provides for two one-year extensions at our option with the consent of lenders representing a majority of the commitments under the facility. At June 28, 2025 and December 28, 2024, there were no amounts borrowed against the facility and there were $9 million of outstanding letters of credit issued under the facility.

Current wording

On October 16, 2025, Textron entered into a senior unsecured revolving credit facility for an aggregate principal amount of $1.0 billion, of which $100 million is available for the issuance of letters of credit. We may elect to increase the aggregate amount of commitments under the facility to up to $1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility expires in October 2030 and provides for two one-year extensions at our option with the consent of lenders representing a majority of the commitments under the facility. The new facility replaces the existing 5-year facility which was scheduled to expire in October 2027. There were no amounts borrowed against either facility and at September 27, 2025 and December 28, 2024, there was a $9 million letter of credit issued and outstanding under the prior facility that remains outstanding under the new facility.

Previous wording

In the first half of 2025, cash flows from operating activities decreased $72 million to $281 million, compared with $353 million in the first half of 2024, largely due to changes in working capital, partially offset by $52 million in lower net tax payments.

Current wording

In the first nine months of 2025, cash flows from operating activities increased $68 million to $629 million, compared with $561 million in the first nine months of 2024, primarily due to $60 million in lower net tax payments.

Previous wording

Cash flows used in investing activities included $134 million and $140 million of capital expenditures in the first half of 2025 and 2024, respectively, partially offset by $57 million and $26 million of net proceeds from corporate-owned life insurance policies, respectively. In the first half of 2025, cash flows from investing activities also included $16 million of net proceeds from the disposition of the Powersports business as discussed in Note 12 to the Consolidated Financial Statements.

Current wording

Cash flows used in investing activities included $210 million and $211 million of capital expenditures in the first nine months of 2025 and 2024, respectively, partially offset by $77 million and $27 million of net proceeds from corporate-owned life insurance policies, respectively. In the first nine months of 2025, cash flows used in investing activities also included $16 million of net proceeds from the disposition of the Powersports business as discussed in Note 12 to the Consolidated Financial Statements.

Previous wording

Cash flows used in financing activities in the first half of 2025 included $429 million of cash paid to repurchase an aggregate of 5.8 million shares of our common stock and $353 million of payments on long-term debt, partially offset by $495 million of net proceeds from the issuance of long-term debt. In the first half of 2024, cash flows used in financing activities included $675 million of cash paid to repurchase an aggregate of 7.7 million shares of our common stock and $359 million of payments on long-term debt.

Current wording

Cash flows used in financing activities in the first nine months of 2025 included $635 million of cash paid to repurchase an aggregate of 8.4 million shares of our common stock and $355 million of payments on long-term debt, partially offset by $495 million of net proceeds from the issuance of long-term debt. In the first nine months of 2024, cash flows used in financing activities included $890 million of cash paid to repurchase an aggregate of 10.1 million shares of our common stock and $360 million of payments on long-term debt.

Previous wording

The Finance group’s cash flows from investing activities included finance receivable originations of $111 million and $58 million in the first half of 2025 and 2024, respectively, and collections on finance receivables totaling $81 million and $78 million, respectively. In the first half of 2025, investing cash flows also included $59 million of proceeds from the disposition of leveraged leases. In the first half of 2025 and 2024, financing activities included payments on long-term and nonrecourse debt of $11 million and $15 million, respectively.

Current wording

The Finance group’s cash flows from investing activities included finance receivable originations of $167 million and $90 million in the first nine months of 2025 and 2024, respectively, and collections on finance receivables totaling $119 million and $99 million, respectively. In the first nine months of 2025, investing cash flows also included $66 million of proceeds from the disposition of non-captive assets. In the first nine months of 2025 and 2024, financing activities included payments on long-term and nonrecourse debt of $12 million and $15 million, respectively.

Previous wording

In the first half of 2025, cash flows from operating activities decreased $97 million to $264 million, compared with $361 million in the first half of 2024, largely due to changes in working capital and a net cash outflow of $33 million from captive financing activities, partially offset by $57 million in lower net tax payments.

Current wording

In the first nine months of 2025, cash flows from operating activities increased $44 million to $613 million, compared with $569 million in the first nine months of 2024, primarily due to $55 million in lower net tax payments, partially offset by a net cash outflow of $34 million from captive financing activities.