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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 Q3 2025 Earnings: A Strong Performance

Textron reported revenues of $3.6 billion, a 5% increase from last year's third quarter, driven by strong growth in aerospace and defense businesses. Segment profit was $357 million, up 26% from the third quarter of 2024. Adjusted income from continuing operations was $1.55 per share, beating analyst estimates of $1.47 per share. Manufacturing cash flow before pension contributions was $281 million, up from $147 million in last year's third quarter, demonstrating the company's ability to generate cash from its operations.

Publication Date: Oct -25

📋 Highlights
  • Revenue Growth:: Q3 2025 revenues reached $3.6 billion, reflecting a 5% annual increase, primarily fueled by aerospace and defense sectors.
  • Segment Profit Surge:: Segment profit soared 26% to $357 million, driven by improved performance across key business units.
  • Adjusted EPS Improvement:: Adjusted income from continuing operations rose to $1.55 per share from $1.40 in 2024.
  • Manufacturing Cash Flow:: Cash flow before pension contributions hit $281 million, doubling from $147 million in the prior-year period.
  • Leadership Transition:: Lisa Atherton will succeed Scott Donnelly as CEO in January 2026, ensuring continuity with her 18-year Textron tenure.

Segment Performance

The Aviation segment reported revenues of $1.5 billion, up 10% from last year's third quarter, driven by higher aircraft revenues and aftermarket parts and service revenues. Segment profit was $179 million, up 40% from last year. The Bell segment reported revenues of $1 billion, up 10% from last year's third quarter, driven by higher military revenues from the MV-75 program. Textron Systems segment revenues were $307 million, up 2% from last year's third quarter, with segment profit of $52 million, up $13 million from last year.

Operational Highlights

The company completed certifications for the CJ3 Gen2 and M2 Gen2 and announced a partnership with Leonardo to launch the Beechcraft M-346N for the US Navy's Undergraduate Jet Training System competition. The company also delivered 30 helicopters and announced a purchase agreement with Global Medical Response for 7 helicopters. As CEO Scott Donnelly noted, "We've seen strong aftermarket activity, driven by high utilization rates. The industry is as healthy as we've ever seen it, with strong demand for aircraft."

Valuation and Outlook

With a P/E Ratio of 17.59 and an EV/EBITDA of 10.97, the market appears to be pricing in a certain level of growth. Analysts estimate next year's revenue growth at 4.9%. The company's guidance for full-year adjusted earnings per share remains in the range of $6 to $6.20, and manufacturing cash flow before pension contributions is expected to be in the range of $900 million to $1 billion. The company's strong balance sheet and solid free cash flow provide a foundation for future growth.

Leadership Transition

The company announced that Lisa Atherton will become the new President and CEO, effective January 2026, with current CEO Scott Donnelly transitioning to Executive Chair. Donnelly expressed confidence in Atherton's leadership abilities, citing her 18 years of experience with the company. The transition is expected to be smooth, given their long-standing working relationship.

3. NewsRoom

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Textron: A Hidden Valuation Gap Finally Ready To Close?

Dec -04

Source: seekingalpha.com

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Edgestream Partners L.P. Acquires New Stake in Textron Inc. $TXT

Dec -03

Source: defenseworld.net

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Charles Schwab Investment Management Inc. Buys 23,635 Shares of Textron Inc. $TXT

Nov -28

Source: defenseworld.net

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Textron (NYSE:TXT) Shares Unloaded Rep. Lisa C. McClain

Nov -27

Source: defenseworld.net

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Jörg Rautenstrauch Named President and CEO of Textron Specialized Vehicles Inc.; Rob Scholl to Assume New Role as Bell Chief Commercial Officer

Nov -24

Source: businesswire.com

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TRU Simulation announces delivery and acceptance of the Bell 505 Flight Training Device to Royal Jordanian Air Force

Nov -13

Source: businesswire.com

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Cessna Citation Ascend Achieves FAA Certification, Bringing Advanced Features to the Most Popular Midsize Business Jet Family

Nov -06

Source: businesswire.com

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TRU Simulation receives Japanese Civil Aviation Bureau qualification for the SUBARU Bell 412EPX Flight Training Device, delivering next-level realism to rotorcraft training operators in Japan

Nov -04

Source: businesswire.com

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: 5.3/10

Value: 4.7

Growth: 4.2

Quality: 5.0

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Curtiss-Wright

A-Score: 5.2/10

Value: 1.2

Growth: 6.1

Quality: 6.9

Yield: 0.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Woodward

A-Score: 5.0/10

Value: 1.1

Growth: 5.6

Quality: 6.7

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Textron

A-Score: 4.9/10

Value: 5.5

Growth: 5.9

Quality: 5.2

Yield: 0.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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BWXT

A-Score: 4.7/10

Value: 0.2

Growth: 6.3

Quality: 5.3

Yield: 1.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

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Axon Enterprise

A-Score: 4.6/10

Value: 0.0

Growth: 9.6

Quality: 5.1

Yield: 0.0

Momentum: 9.0

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

83.47$

Current Price

83.47$

Potential

-0.00%

Expected Cash-Flows