Story ID: 
Bell Helicopter Shipments Lag in 1Q2024
By: Jessica Reed
Caption: Bell delivered 18 commercial helicopters in the quarter, down from 22 delivered a year ago
Word Count: 406
Bell delivered 18 commercial helicopters in the first quarter, down from 22 in the same period last year. The breakdown included twelve 505s, four 407s, one 429, and one 412. This represents a slight shift from the first three months of last year, when four 429 helicopters were handed over to customers.
On the defense side, Bell shipped two H-1 helicopters in the quarter but did no V-22 tiltrotors. This contrasts with two V-22s and no H-1s in the same period a year ago.
The rotorcraft manufacturer reported revenue and profit growth thanks largely to its military contracts, particularly the future long-range assault aircraft (FLRAA) program. Despite a slight decline in some commercial and military programs, Bell had revenues of $727 million in the quarter, a $106 million year-over-year increase.
Bell's earnings in the first three months was up $20 million from a year ago, to $80 million. This rise was primarily due to a favorable impact from performance improvements, including a $13 million reduction in research and development costs.
During an earnings call on Thursday, parent company Textron chairman and CEO Scott Donnelly provided further insights into the rotorcraft division's financial dynamics. He highlighted an expansion in Bell's margins, crediting a blend of cost management initiatives and the resolution of a lawsuit that temporarily boosted profits.
Despite these gains, Donnelly maintained that Bell's annual profitability is expected to stabilize. “We're continuing to focus very much on cost to deal with the mix issues,” he said.
Addressing questions about the supply chain and the forthcoming 525 helicopter certification, Donnelly conveyed confidence in overcoming current challenges. The Bell 525 is on track for certification by year-end, progressing through critical flight tests and nearing the completion of required durability and reliability evaluations, he explained.
“We should wrap up flight testing as we get to mid-year,” Donnelly said. He expects deliveries of the 525 to start in late 2025. This program is particularly significant because the 525 targets the oil and gas sector, where Bell anticipates strong market demand.
Furthermore, Donnelly addressed concerns regarding supply chain impact on Bell's commercial helicopter production, particularly in the first quarter that typically sees lighter activity. He reassured stakeholders that supply-chain issues are being managed effectively and said, “I don't think there's anything new or surprising that would in any way affect our guide as we think about Bell commercial volumes through the course of the year.”