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1. Company Snapshot

1.a. Company Description

Textron Inc.operates in the aircraft, defense, industrial, and finance businesses.The company's Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts.


Its Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services.The company's Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles.Its Industrial segment offers blow-molded plastic fuel systems, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, and plastic tanks for catalytic reduction systems primarily to automobile original equipment manufacturers; and golf cars, off-road utility vehicles, recreational side-by-side and all-terrain vehicles, snowmobiles, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users.


The company's Finance segment provides financing services to purchase new and pre-owned aircraft and bell helicopters.It serves in the United States, Europe, Asia, Australia, and internationally.Textron Inc.


was founded in 1923 and is headquartered in Providence, Rhode Island.

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1.b. Last Insights on TXT

Textron Inc.'s recent performance was driven by strong Q2 2025 earnings and revenue beat, with adjusted income from continuing operations of $1.55 per share, surpassing the Zacks Consensus Estimate of $1.45 per share. The company's revenue growth in both commercial air and industrial segments contributed to the positive results, with a 5.4% year-over-year increase in revenues. Additionally, Textron's backlog and demand for infrastructural solutions remained solid, supporting the company's growth prospects. The company's earnings surprise history and positive earnings outlook also contributed to the stock's performance.

1.c. Company Highlights

2. Textron's Strong 2025 Results and 2026 Outlook

Textron reported a robust 2025, with revenues growing 8% to $14.8 billion and segment profit increasing 14% to $1.4 billion. Adjusted EPS came in at $6.10, beating the previous year's $5.48. For the fourth quarter, revenues were $4.2 billion, up 16%, and segment profit was $380 million, up 34%. Adjusted EPS for the quarter was $1.73, slightly below estimates of $1.74. The company's strong performance was driven by solid order flow and customer demand across its portfolio, resulting in a backlog of $7.7 billion.

Publication Date: Feb -11

📋 Highlights
  • Revenue & Profit Growth:: Textron reported 16% Q4 revenue growth ($4.2B) and 34% segment profit growth ($380M), with full-year adjusted EPS at $6.10 (up 11.7% from $5.48 in 2024).
  • Textron Aviation Performance:: Delivered 171 jets (up from 151) and 146 commercial turboprops (up from 127), driving 36% Q4 revenue growth and 13% full-year revenue growth.
  • Bell Segment Momentum:: Achieved 11% Q4 revenue growth ($1.23B) and 20% full-year revenue growth, with 90% of MV-75 engineering drawings completed and 45,000 purchase orders issued.
  • 2026 Guidance:: Projects $15.5B revenue (4.5% growth) and $6.40–$6.60 adjusted EPS, with Textron Aviation expected to reach $6.5B revenue (9% growth) and 11–12% segment margin.
  • Capital Expenditures & MV-75 Costs:: 2026 CAPEX of $650M (up $383M YoY), with MV-75 program costs estimated at $60M–$110M above initial projections but expected to generate low double-digit margins long-term.

Segment Performance

Textron Aviation delivered 171 jets, up from 151 last year, and 146 commercial turboprops, up from 127 in 2024. The segment's revenue was up 36% for the quarter and 13% for the full year, reflecting higher aircraft deliveries and increased aftermarket volume. Bell had a strong year with revenue up 11% for the quarter and 20% for the full year, driven by the acceleration of the MV-75 program.

2026 Outlook

Textron is projecting revenues of $15.5 billion in 2026, up 4.5% from 2025, with adjusted EPS expected to be in the range of $6.40 to $6.60. The company expects manufacturing cash flow before pension contributions to be in the range of $700 million to $800 million. Analysts estimate next year's revenue growth at 5.0%, indicating a continued strong performance.

Valuation

With a P/E Ratio of 18.76 and an EV/EBITDA of 11.23, Textron's valuation appears reasonable. The company's ROE is 12.25%, and ROIC is 9.41%, indicating a strong return on equity and invested capital. The company's guidance for 2026 suggests continued growth, with Textron Aviation revenues expected to grow 9% and Bell revenues expected to grow at a low single-digit rate.

MV-75 Program and Supply Chain

The MV-75 program is a key driver of Textron's growth, with the company expecting a significant increase in revenue from the program. Lisa Atherton, the CEO, highlighted the company's confidence in the program, citing the performance of the prototype and the digital engineering yield. However, the company still faces challenges with key components such as engines, and is investing in workforce development and training to improve efficiency and productivity.

Capital Allocation

Textron expects to continue deploying cash, focusing on research and development, preparing for the MV-75 acceleration, and continuing to do share buybacks. The company is comfortable with its current debt level, which is mid-triple B, and expects to maintain a similar capital allocation strategy in the future.

3. NewsRoom

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Mark Bamford Sells 9,533 Shares of Textron (NYSE:TXT) Stock

Feb -20

Source: defenseworld.net

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Scott Donnelly Sells 219,619 Shares of Textron (NYSE:TXT) Stock

Feb -20

Source: defenseworld.net

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Reviewing Textron (NYSE:TXT) and ParaZero Technologies (NASDAQ:PRZO)

Feb -20

Source: defenseworld.net

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Textron: A Lot Of "Meh" To Go Around

Feb -10

Source: seekingalpha.com

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Kautex Textron Achieves CDP Climate Change Leadership Status and Improves Water Security Stewardship Score

Feb -09

Source: businesswire.com

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Is Textron Stock a Buy in 2026 After Its 2025 Earnings Beat?

Feb -05

Source: fool.com

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Textron Elects Cristina Méndez to Board of Directors

Feb -02

Source: businesswire.com

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Bank of New York Mellon Corp Reduces Holdings in Textron Inc. $TXT

Feb -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.30%)

6. Segments

Textron Aviation

Expected Growth: 5%

Textron Aviation's 5% growth is driven by increasing demand for business jets, particularly the Cessna Citation Longitude and Beechcraft King Air 360. Strong order backlogs, expansion in aftermarket services, and growing military sales also contribute to growth. Additionally, investments in digital transformation and product innovation are expected to enhance operational efficiency and drive revenue growth.

Industrial

Expected Growth: 4%

Textron's Industrial segment growth is driven by increasing demand for fuel systems, unmanned systems, and simulation and training solutions. The company's strategic acquisitions, such as Arctic Cat, have expanded its product portfolio and geographic reach. Additionally, investments in digital technologies and cost savings initiatives have improved operational efficiency, contributing to the segment's 4% growth.

Bell

Expected Growth: 4%

Bell's 4% growth is driven by increasing demand for commercial helicopters, particularly in the oil and gas sector. Additionally, the company's focus on innovation, such as the development of electric and autonomous helicopters, is expected to drive growth. Furthermore, Bell's expansion into new markets, including Asia and the Middle East, is also contributing to its growth.

Textron Systems

Expected Growth: 3%

Textron Systems' 3% growth is driven by increasing demand for unmanned systems, surveillance, and intelligence solutions from government and defense agencies. Additionally, the segment benefits from its diversified portfolio, including training and simulation, and electronic systems. Furthermore, strategic acquisitions and investments in digital technologies, such as autonomy and AI, are expected to contribute to future growth.

Finance

Expected Growth: 2%

Textron Inc.'s 2% growth is driven by increasing demand for its industrial and aviation products, particularly in the commercial helicopter and defense segments. Additionally, the company's cost-reduction initiatives and strategic acquisitions have contributed to its growth. Furthermore, Textron's diversified portfolio and strong brand presence in various markets have also supported its growth momentum.

Textron Eaviation

Expected Growth: 6%

Textron Eaviation's 6% growth is driven by increasing demand for electric and hybrid-electric aircraft, expansion into urban air mobility, and growing adoption of sustainable aviation fuels. Additionally, investments in digitalization, autonomous systems, and advanced materials are enhancing product offerings and driving innovation.

7. Detailed Products

Bell Helicopters

Designs and manufactures commercial and military helicopters

Cessna Aircraft

Designs and manufactures general aviation aircraft, including business jets and single-engine planes

Beechcraft

Designs and manufactures general aviation aircraft, including business jets and turboprop planes

Textron Systems

Designs and manufactures unmanned systems, surveillance systems, and intelligence solutions

Textron Marine & Land Systems

Designs and manufactures armored vehicles, turrets, and marine craft

E-Z-GO

Designs and manufactures golf cars, personal transportation vehicles, and utility vehicles

Textron Ground Support Equipment

Designs and manufactures ground support equipment for the aviation industry

Kautex

Designs and manufactures fuel systems, selective catalytic reduction systems, and other automotive components

8. Textron Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Textron Inc. operates in a industry with moderate threat of substitutes. The company's products and services have some substitutes, but they are not easily replaceable.

Bargaining Power Of Customers

Textron Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The company's products and services are also customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Textron Inc. has a moderate level of bargaining power with its suppliers. The company relies on a few key suppliers for critical components, but it also has some flexibility to switch to alternative suppliers if needed.

Threat Of New Entrants

The threat of new entrants in Textron Inc.'s industry is low due to high barriers to entry, including significant capital requirements and regulatory hurdles. New entrants would need to invest heavily in research and development, manufacturing, and marketing to compete with established players.

Intensity Of Rivalry

The intensity of rivalry in Textron Inc.'s industry is high due to the presence of several established players competing for market share. The company faces intense competition in terms of pricing, product features, and customer service.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.67%
Debt Cost 3.95%
Equity Weight 64.33%
Equity Cost 10.50%
WACC 8.16%
Leverage 55.45%

11. Quality Control: Textron Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Huntington Ingalls

A-Score: 5.8/10

Value: 4.5

Growth: 4.2

Quality: 5.1

Yield: 4.0

Momentum: 10.0

Volatility: 6.7

1-Year Total Return ->

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Curtiss-Wright

A-Score: 5.1/10

Value: 1.2

Growth: 6.1

Quality: 6.9

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Woodward

A-Score: 5.1/10

Value: 0.9

Growth: 6.9

Quality: 6.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Textron

A-Score: 4.9/10

Value: 4.7

Growth: 5.9

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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BWXT

A-Score: 4.9/10

Value: 0.9

Growth: 6.3

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

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Axon Enterprise

A-Score: 3.8/10

Value: 0.0

Growth: 9.6

Quality: 5.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

100.77$

Current Price

100.77$

Potential

-0.00%

Expected Cash-Flows