Research · Sep 3, 2026
[TXT] Textron Thesis 2026: Aviation Backlog Strength and Defense Growth Sustain Earnings Guidance
Textron Inc. FY25 (Jan year-end ending Jan 2026) revenue $14.80B (+8%); op income $1.25B (+46%); NI $921M (+12%); EPS $5.11 (+18%); adjusted EPS $6.10 FY / Q4 $1.73. Q4 revenue +16%; segment profit +34%. Textron Aviation: Q4 revenue $1.7B (+36%); FY $6B (+13%); segment profit $694M (+23%); backlog $7.7B. Bell: Q4 $1.3B (+11%); FY $4.3B (+20%); segment profit $363M; backlog $7.8B; MV-75 FLRAA program progress (engineering drawings, supplier contracts, manufacturing capacity). Textron Systems: Q4 $323M (+4%); FY $1.2B; segment profit $175M (+14%); backlog $3.3B; Ship to Shore Connector program. Industrial: Q4 $821M (-$48M); FY $3.2B; segment profit $145M; organic growth post powersports divestiture. eAviation: $27M / -$63M segment loss. Finance: $75M / $49M profit. CEO Lisa Atherton priorities: execution, portfolio focus, building resilience. FCF $884M; buyback $1.08B (-8% YoY); total debt $4.28B (+8%). FY26 guide: revenue ~$15.5B (+4.5%); adj EPS $6.40-$6.60; manufacturing cash flow before pension $700-$800M; Aviation ~$6.5B (+9%) margin 11-12%; Bell ~$4.4B low single-digit margin 8-9%; Systems ~$1.35B (+7%) margin 12-13%; Industrial ~$3.2B margin 4.5-5.5%; Finance ~$20M segment profit. Risks: Aviation cycle, MV-75 execution, defense budget cyclicality, Industrial competition (John Deere, Polaris, BRP, Honda, Yamaha), eAviation losses, supply chain, pension funding.