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Textron Inc.
S&P 500
$14.2B
Market Cap
17.0
P/E
1.16
PEG
8.5%
ROCE
12.2%
ROE
0.49
D/E
6.7%
OPM
-21.4%
% from 52W High
30
α RS
🔍 TXT is showing a notable setup because Sector RRG has Industrials in the Improving quadrant with the trail still strengthening and an ECS of 51.6 last quarter. Net: Partial signal stack, not a recommendation. ? RRG ECS
Sources
Industrials in Improving quadrant · ECS 51.6
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🌏 Global Investor Returns
Currency-adjusted total returns for TXT including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates in six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft, as well as offers maintenance, inspection, and repair services; commercial parts; and advanced flight training devices. The Bell segment supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The 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. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks; plastic tanks for catalytic reduction systems and other fuel system components; lightweight and composite pentatonic battery systems for use in electric vehicles primarily to automobile original equipment manufacturers; and golf cars, off-road utility vehicles, powersports products, 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 Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.

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📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →
📊 MIXED Textron Q1 2026: Revenue $3.7B, up 12%; plans A&D/industrial separation.
Revenue & Profitability
Q1 2026 revenue was $3.7 billion, up 12% year-over-year. Segment profit was $320 million, up 10%. Adjusted EPS was $1.45, up 13% from $1.28 a year ago. Manufacturing cash flow before pension contributions was a use of $228 million (vs. use of $158 million in Q1 2025). The company repurchased approximately 1.8 million shares for $168 million.
Outlook
Management sees strong defense spending tailwinds: the Trump administration's proposed FY2027 budget calls for $1.5 trillion in defense spending. Commercial demand remains healthy, with Textron Aviation and Bell posting their best Q1 bookings in four years. The Middle East conflict is being monitored but has not materially impacted business so far. Utilization rates and aftermarket activity are growing.
Growth Drivers
Key growth drivers include the MV-75 Cheyenne II program (U.S. Army's planned production run of over 25 years, scaling from 8 units in FY2028 to 27 in FY2031), Bell's Flight School Next competition (decision within 90 days), Textron Systems' Advanced Reconnaissance Vehicle (ARV) pre-production award ($450 million), and LASSO loitering munition prototype. Aftermarket revenue (over 30% of new Textron) grew 10% in the quarter.
Balance Sheet & CapEx
Management intends to reallocate some R&D investment into supply chains and factories to improve operational efficiency and throughput. They are not increasing total investment but focusing on making factories more effective. Specific CapEx guidance was not provided.
Margins
Q1 2026 segment profit margins: Textron Aviation 10.4% (up from prior year), Bell ~6.5% (down year-over-year due to mix), Textron Systems 12.4% (strong profitability), Industrial 5.1%. Management expects Bell margins to improve through the year, reaching 8%-9% full-year guidance. Aviation margins are expected to improve sequentially, peaking in Q4, as efficiencies increase and supply chain issues ease.
Key Risks
Risks flagged include: supply chain disruptions (especially engines), though improving; the potential impact of higher oil prices from the Middle East conflict on business aviation demand; the timing of the MV-75 LRIP charge ($60M-$110M) depending on government exercise of contract; and tax leakage considerations from the industrial separation (deemed manageable).
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Revenue rose 3% year-over-year to $3.8 billion, with all manufacturing segments contributing to growth and adjusted EPS up to $1.62. Strong demand and multi-year backlogs support a positive outlook, but supply chain and funding risks remain, especially for the MV-75 program.
Q1 2026 Q1 2026 2026-04-30
Q1 revenue rose 12% to $3.7B, segment profit grew 10%, and adjusted EPS increased 13%. Announced plan to separate the industrial segment, creating a pure-play A&D company with strong backlogs and robust order activity. Supply chain and margin improvements expected through the year.
Q4 2025 Q4 2025 2026-01-28
Record 2025 revenue and profit growth driven by strong Aviation and Bell performance, with robust backlogs and continued investment in new programs. 2026 guidance projects further revenue and EPS growth, supported by MV-75 program acceleration and ongoing capital returns.
Q3 2025 Q3 2025 2025-10-23
Q3 revenue rose 5% to $3.6B, with segment profit up 26% and strong growth in aviation and defense. Backlog and demand remain robust, supply chain issues are improving, and full-year EPS guidance is maintained. Leadership transition to Lisa Atherton as CEO announced.
Q2 2025 Q2 2025 2025-07-24
Second quarter revenue grew 5.4% year-over-year to $3.7 billion, with strong performance in aviation and Bell, and improved cash flow. Full-year EPS guidance is maintained, and cash flow outlook is raised, with margin improvement expected in the second half.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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