Yahoo Finance Textron (TXT) Reveals Enhanced Features for Cessna Citation Jets
Textron Inc. TXT recently revealed that its Cessna Citation Latitude and Citation Longitude mid-size business jets would be equipped with upgraded Garmin G5000 avionics. These advanced avionics features are expected to provide better performance and improved user experience to pilots of the new Cessna Citation Latitude aircraft, starting in 2025, and the new Longitude jets, starting in 2026.
What’s New?
The Cessna Citation Latitude and Longitude jets will have several cutting-edge features and technology when outfitted with the most recent Garmin G5000 avionics suite. These features include the Synthetic Vision Guidance System, which offers a continuous, geospatially accurate representation of the topography of the exterior scene, including obstacles, with the runway display included.
In addition, SVT upgrades improve situational awareness during taxiing by providing a 3D exocentric view of the SafeTaxi airport environment, including 3D building footprints, taxiways, aprons, signage and other markers. This is expected to reduce runway incursions, along with improving obstacle and powerline display, water and terrain limits, runway and airport sign portrayals and topographical clarity.
SVT introduces multiple viewpoints for the first time and combines with the new Taxiway Routing tool. This gives clarity during ground operations, especially at large, unfamiliar and complex airports with low visibility.
TXT’s Growth Prospects in Business Aviation
Steadily growing global air travel and gradually improving economic conditions of nations across the board, with the fading out of the pandemic impact, along with an increasing number of high net-worth personnel, are expected to drive the growth of the business jet industry in the coming days. 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. The fact that its Citation Latitude has been the world’s most-delivered midsize business jet for eight consecutive years offers TXT a solid competitive edge in the business jet space, which is likely to be retained in the future, with the integration of the enhanced Garmin G5000 avionics, as mentioned above.
This avionics enhancement for its Citation product line can be expected to boost order growth for the company, like the one it secured in September 2023, wherein NetJets agreed to purchase up to 1,500 additional Citation business jets over the next 15 years. Such order wins are likely to significantly boost TXT’s future revenue growth.
Peer Moves
Apart from TXT, aerospace companies that are likely to reap the benefits of the growing business jet market are as follows:
Boeing BA: It 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 27.5%. The Zacks Consensus Estimate for BA’s 2024 sales suggests growth of 2.6% from the prior-year reported figure.
Airbus EADSY: Its business unit, Airbus Corporate Jets, 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 21.4%. The Zacks Consensus Estimate for EADSY’s 2024 sales implies growth of 8.2% from the prior-year reported figure.
General Dynamics GD: Its 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.
General Dynamics has a long-term earnings growth rate of 12%. The Zacks Consensus Estimate for GD’s 2024 sales suggests growth of 10.5% from the prior-year reported figure.
Price Movement
In the past six months, shares of Textron have risen 18.4% against the industry’s decline of 3.8%.
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Zacks Rank
Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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