Bell Textron saw modest revenue growth last year, largely driven by increased funding for the U.S. Army’s Future Long Range Assault Aircraft (FLRAA) program. The helicopter manufacturer’s fourth-quarter revenues reached $1.1 billion, up $58 million year over year. This reflected higher military and support program revenues of $67 million, primarily due to higher volume on the FLRAA program, partially offset by lower volume on the V-22 program.

For the full year, Bell reported revenues of approximately $4 billion, a 13.7% increase over 2023 that was primarily driven by the continued ramp-up of the FLRAA program. Profits last year were $50 million higher at $370 million. 

In the fourth quarter, Bell delivered 78 civil helicopters, down from 91 a year earlier. The mix included thirty 505s, twenty-three 407s, fifteen 429s, and five 412s. On the military side, Bell delivered only two V-22 Ospreys and no H-1s in the quarter. In comparison, for the fourth quarter of 2023, Bell delivered forty 505s, twenty-eight 407s, eighteen 429s, and five 412s, as well as two H-1s and no V-22s.

Civil deliveries for the full year 2024 totaled 172 helicopters, which was essentially flat from 2023. Annual production included ninety 505s, forty-nine 407s, twenty-three 429s, and ten 412s. Military deliveries consisted of 14 V-22s and four H-1s. In 2023, Bell had delivered seventy-seven 505s, fifty-three 407s, thirty 429s, and eleven 412s.

Bell’s fourth-quarter segment profit of $110 million was down $8 million from the prior year period. According to Textron chairman and CEO Scott Donnelly, this decline was “primarily driven by mix as lower volume on the V-22 program offset higher volume on the FLRAA program.” Bell’s backlog at the end of 2024 stood at $7.5 billion.

Bell Builds Future Assault Test Aircraft

Speaking on the company’s earnings call on Wednesday, Donnelly highlighted the significance of the U.S. Army’s Milestone B decision on FLRAA in August, which launched the engineering and manufacturing development phase of the program. During the fourth quarter, the Army also exercised an option for Bell to build two limited-user test FLRAA aircraft. Donnelly said Bell is “now executing on the EMD phase of the program and progressing towards the first prototype aircraft build.”

Other Bell military highlights in 2024 included a foreign military sale award for the production and delivery of 12 AH-1Z Viper attack helicopters to Nigeria, and more than $1 billion in sustainment awards on the H-1 and V-22 programs. On the commercial side, Bell booked its first order for ten 525 super medium helicopters from Norwegian state energy company Equinor.

Looking ahead to 2025, Donnelly said Textron expects Bell’s revenue growth to be driven by the continued FLRAA ramp-up and higher commercial volumes. However, CFO Frank Connor noted that Bell’s operating margin is forecast to decline to a range of 8.5% to 9.5% in 2025, down from 10.8% in 2024, due to margin pressure from the FLRAA program and lower margin initial commercial deliveries.

“As we’ve said, we have always expected that this margin will come down somewhat based on that mix, but we’re trying to target not having that be a dilution or a problem at the EPS level,” Donnelly explained. “I still think we’re going to be in that range of being able to at least hold operating profit dollars even as we grow the revenue on lower-margin business.”

Despite the margin headwinds, Donnelly expressed confidence in Bell’s outlook, noting that risks to the company’s 2025 revenue and profit guidance are limited since most of the business is already in backlog. “The FLRAA program, the ramp that we have baked into there is supported by what’s in the pending 2025 appropriations budgets and all the guidance we’re receiving from the customer,” he said. “Most of the commercial business is well booked. Sustainment around V-22 and H-1 is very predictable business and, again, largely booked.”