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Textron (TXT) Inks a Deal With flyExclusive for Citation CJ3+

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Textron Inc’s. (TXT - Free Report) business segment, Textron Aviation, recently inked an agreement with flyExclusive involving the delivery of 30 Cessna Citation CJ3+ light jets to the latter. The recent deal with flyExclusive, a leading provider of premium private jet charter experiences, will provide a competitive advantage and a platform for Textron to further expand its footprint in the light jets market.

Per the deal, TXT will deliver the first five aircraft in 2023, while the rest of the aircraft delivery option will spread through 2025.

Importance of Cessna Citation CJ3+ Light Jets

Citation CJ3+, with the capacity of nine passengers and up to 1,000 lbs of baggage, boasts best-in-class acquisition and operating cost features. With the capability to fly up to 2,040 nautical miles, Citation CJ3+ seems to be an ideal choice for the light jet market segment.

Additionally, the jet’s efficiency can be gauged from its dual trait of being fuel-efficient and eco-friendly for the operator. Compared with other fleets in the light jet segment, Citation CJ3+ burns nearly 10% less fuel and costs 5% less in maintenance per flight hour.

Such remarkable features of the jet enabled Textron to win multiple orders involving the jet and build a prominent position in the market of light jets. The aforementioned deal is a testimony to that. Moreover, the deal further enhances Textron’s position in the light jet market and boosts its revenue generation prospects.

Growth Prospects in the Light Jet Market

Demand for small and very light jets may witness a northward trend, buoyed by the rising cohort of professionals traveling short-haul distances. Also, the uptick in airtravel demand may further boost demand for these jets among people avoiding the commercial and busy routes of flying. In this context, the market for light and very light jets may register a CAGR of more than 1.5% during the 2022-2027 period as more people opt for a comfortable and time-saving, yet less pocket-friendly mode of traveling, per the report from Mordor Intelligence.

Textron appears to be well-poised to  reap the benefits of the key opportunities embedded in the very light jet market with its family of light jet fleets.

Embraer (ERJ - Free Report) is another forerunner in the aforementioned market, which can avail the benefits of the expanding small and very light jets.Embraer’s Phenom 300 series was the most delivered twinjet of 2021 and became the world’s best-selling light jet for the 10th consecutive year. ERJ delivered 56 Phenom 300 series light jets in 2021.

Its fleet of light jets also comprises the Phenom 100EV, which can easily accommodate four passengers. Its appealing design and flying capabilities make it one of the most sought-after jets.

Price Movement

In the past year, shares of Textron have surged23.3% compared to the industry’s decline of 33.7%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

Textron currently carries a Zacks Rank #3 (Hold). Somebetter-ranked stocks from the same industryare Huntington Ingalls (HII - Free Report) and Spire Global, Inc. (SPIR - Free Report) ,each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Huntington Ingalls reported fourth-quarter 2021 adjusted earnings of $2.84 per share, which declined 34.7% from $4.35 reported in the prior-year quarter. Total revenues came in at $2,677 million, lagging the Zacks Consensus Estimate of $2,738.4 million by 2.2%.

The Zacks Consensus Estimate for HuntingtonIngalls’ fiscal 2022 earnings indicates an upward revision of 4.3% in the past 60 days. HII shares have rallied 3% in the past three months.

The Zacks Consensus Estimate for Spire’s 2022 earnings implies growth of 47.3% from the prior-year figure. The Zacks Consensus Estimate for Spire’s 2022 sales indicates growth of 101.3% from the prior-year figure.

The Zacks Consensus Estimate for SPIR’s 2023 earnings indicates growth of 4.1% from the 2022 estimated figure.

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