Textron Flags Possible MV-75 Production Award Delay Under Continuing Resolution

Textron executives said a continuing resolution could delay the Army’s first low-rate initial production contract for the MV-75, the aircraft Bell Textron is developing for the Army’s Future Long Range Assault Aircraft program. The executives discussed a possible delay during Textron’s earnings call; they did not say the award had been postponed.

Key details

• CFO David Rosenberg said Textron had previously anticipated the award around the fourth quarter into the first quarter of the following year.
• Rosenberg said a further delay could increase Textron’s expected financial impact from $60 million–$110 million to $110 million–$150 million.
• CEO Lisa Atherton said the Army requested a $350 million funding transfer for the MV-75, and Congress approved the reprogramming request during the third quarter.
• Textron said about $300 million was committed through contract changes for costs Bell and its suppliers had already incurred.
• Bell Textron became the MV-75 prime contractor in late 2022.

Textron said a further delay could raise its expected MV-75 financial impact to $110 million–$150 million.

Why it matters

The MV-75 is part of the Army’s Future Long Range Assault Aircraft program, and the timing of its first production contract affects the next step from development toward production. Textron’s figures also show how a schedule shift could change the company’s expected program costs.

What happens next

The Army’s production award will set the next milestone for the MV-75 program. What developments will you be watching as the aircraft moves toward production?