---
title: "Textron Hits The Brakes On Powersports: Strategic Shift Amid Soft Demand"
description: "Textron Inc. has announced a pause in powersports production due to soft consumer demand, leading to a drop in its stock price. The company expects an inventory valuation charge that will reduce adjus"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/222706301.md"
published_at: "2024-12-18T17:06:34.000Z"
---

# Textron Hits The Brakes On Powersports: Strategic Shift Amid Soft Demand

> Textron Inc. has announced a pause in powersports production due to soft consumer demand, leading to a drop in its stock price. The company expects an inventory valuation charge that will reduce adjusted earnings per share for 2024 by approximately $0.12 to $0.16. Additionally, Textron has increased its pre-tax special charges for its 2023 restructuring plan. The revised outlook for 2024 adjusted earnings per share is now $0.40 to $0.60, down from $0.20 to $0.40. TXT shares are currently down 2.98%.

**Textron Inc.** TXT shares are trading lower on Wednesday following the announcement that it is pursuing strategic alternatives for its Powersports product line within its Industrial segment.

The decision comes as the consumer demand for powersports products continues to remain soft, per an exchange filing.

In response, Textron’s Textron Specialized Vehicles business will begin pausing production of its powersports products after completing limited production runs to fulfill customer commitments.

Production is expected to be paused indefinitely in the first half of 2025.

As part of this restructuring effort, Textron has increased its expected pre-tax special charges for its 2023 restructuring plan.

Originally expected to range between $165 million and $170 million, these charges will now range from $190 million to $205 million, reflecting contract termination costs related to the production pause.

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Additionally, the company anticipates incurring an inventory valuation charge of $30 million to $40 million to write down powersports inventory to its net realizable value.

This charge will reduce adjusted earnings per share for 2024 by approximately $0.12 to $0.16.

While announcing its third quarter results, Textron revised its 2024 adjusted earnings per share from continuing operations outlook to $5.40 to $5.60, down from its previous outlook of $6.20 to $6.40. Textron exited its third quarter with cash and equivalents of $1.289 billion and inventories worth $4.410 billion.

**Price Action:** TXT shares are trading lower by 2.98% to $77.68 at last check Wednesday.

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.