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Textron (TXT) Launches Business Jet Cessna Citation Ascend

Textron Inc.’s TXT arm, Textron Aviation, recently launched Cessna Citation Ascend, the newest addition to its business jet portfolio. Cessna Citation Ascend, which is part of its 560XL series, boasts the newest technology features with impressive amenities. The jet is scheduled to start commercial operation in 2025.

Importance of Textron’s 560XL Series

The Citation 560XL family of aircraft is acknowledged for revolutionizing the business aviation market. Its advancement and supremacy continue to dominate customers’ demand worldwide. Its strong demand can be gauged by almost more than 1000 jets delivered to customers worldwide in the past 25 years.

Cessna Citation Ascend brings the combination of the best features of the existing 560XL series coupled with all the advanced features, which will have the ability to uplift the experience for both pilots and passengers. Such advancements in this jet’s features exemplify TXT’s commitment to innovation, reliability and state-of-the-art solutions. The cutting-edge technology offered by the jet raises the benchmark and provides the company with a competitive edge.

Backed by such strong features, Textron Aviation, which already enjoys robust demand for the Citation 560XL family of jets, can be expected to witness a strong inflow of orders for Citation Ascend as well. This is likely to be instrumental to its revenue generation prospects.

Growth Opportunities & Peer Moves

Per the report from Mordor Intelligence, the global aviation market is likely to witness a CAGR of more than 5% during the 2023-2028 period. This entails strong demand for jets in the days ahead as traveling demand continues to gain traction. In such a scenario, jet manufacturers that are likely to benefit are as follows:

Embraer ERJ continues to witness the strong market demand for its E-jets worldwide. For 2023, it expects to deliver commercial jets in the band of 65-70, while Executive Aviation deliveries are expected in the band of 120-130 aircraft.

Embraer boasts a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for ERJ’s 2023 sales suggests a growth rate of 20.9% from the prior-year reported figure.

Boeing BA remains the largest aircraft manufacturer in the United States in terms of revenues, orders and deliveries. Its commercial backlog at the end of the first quarter was $411.45 billion, up from $404.38 billion recorded at the end of the fourth quarter of 2022.

Boeing boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2023 sales suggests a growth rate of 18% from the prior-year reported figure.

Airbus SE EADSY boasts an order backlog of 7,254 commercial aircraft as of Mar 31, 2023 compared with the order backlog of 7,023 commercial aircraft as of Mar 31, 2022.

The long-term earnings growth rate of Airbus is 12.4%. The Zacks Consensus Estimate for EADSY’s 2023 sales implies a growth rate of 18.5% from the prior-year reported figure.

Price Movement

In the past year, shares of Textron have increased 2.2% against the industry’s decline of 1.9%.

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Zacks Investment Research

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Zacks Rank

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

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