Textron (TXT)
NYSE:TXT
Top Page
Textron
(NYSE:TXT)
Select Model
Select Model
Rating:68Neutral
Price Target:
$105.00
▲(20.04% Upside)
Action:DowngradedDate:02/02/26
TXT scores well on financial quality and outlook: improving balance-sheet leverage, durable free cash flow, and constructive FY2026 guidance supported by backlog and program execution. The score is tempered by weaker near-term technical momentum and operational risks flagged on the call (Industrial softness, MV-75 ramp/possible catch-up charge, and supply-chain constraints), while valuation looks reasonable but not notably cheap and dividend support is minimal.
Positive Factors
Backlog & Delivery Momentum
A large aviation backlog and rising deliveries provide durable revenue visibility and conversion runway over multiple quarters. Backlog-backed production supports stable manufacturing schedules, aftermarket revenue growth, and predictable cash conversion that underpins multi-quarter guidance and margin planning.
Negative Factors
Industrial Segment Weakness
Sustained softness in Industrial reduces revenue diversification and compresses companywide margins. A prolonged industrial downturn would pressure cash flow and segment profit contribution, increasing sensitivity to aerospace/defense cycles and making overall earnings less predictable over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Delivery Momentum
A large aviation backlog and rising deliveries provide durable revenue visibility and conversion runway over multiple quarters. Backlog-backed production supports stable manufacturing schedules, aftermarket revenue growth, and predictable cash conversion that underpins multi-quarter guidance and margin planning.
Read all positive factors
Textron (TXT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.23B
Dividend Yield0.09%
Average Volume (3M)1.64M
Price to Earnings (P/E)17.0
Beta (1Y)1.04
Revenue Growth1.83%
EPS Growth-0.73%
CountryUS
Employees34,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.73
Shares Outstanding174,098,890
10 Day Avg. Volume1,918,706
30 Day Avg. Volume1,636,538
Financial Highlights & Ratios
PEG Ratio1.02
Price to Book (P/B)1.99
Price to Sales (P/S)1.06
P/FCF Ratio17.75
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue1.18
Enterprise Value/Gross Profit6.99
Enterprise Value/Ebitda10.63
Forecast
1Y Price Target
$99.56Price Target Upside13.82% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)6.46
Revenue Forecast (FY)$15.51B
Textron Business Overview & Revenue Model
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 airc...
How the Company Makes Money
Textron generates revenue through the sale of its diverse range of products and services across its various sectors. The Aircraft segment earns money primarily from the manufacture and sale of general aviation aircraft, commercial and military air...
Textron Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: strong revenue and segment profit growth across the company, historic-high annual revenue, increased deliveries and backlog expansion, meaningful progress on the MV-75 production ramp, and solid cash generation and buybacks. Notable headwinds include industrial revenue declines, ongoing supply-chain and workforce constraints (especially in engines), continued eAviation losses, and a possible MV-75 cumulative catch-up charge of $60M–$110M upon LRIP award. Management provided constructive 2026 guidance that factors in higher MV-75 CapEx while expecting continued top-line growth and improved margins in several segments. Overall, the positives (robust growth, backlog, program execution, and guidance) outweigh the challenges, though some program- and market-specific risks remain.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 revenues of $4.2B, up 16% year-over-year; full-year revenues of $14.8B, up 8% year-over-year, the highest annual revenue in company history at $14.8B.
Negative Updates
Industrial Segment Weakness
Industrial Q4 revenues $821M, down $48M year-over-year; full-year Industrial revenues $3.2B, down 9% (down 4% organically). Q4 Industrial segment profit $30M, down $18M versus prior-year quarter; full-year Industrial profit $145M, down $6M.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 revenues of $4.2B, up 16% year-over-year; full-year revenues of $14.8B, up 8% year-over-year, the highest annual revenue in company history at $14.8B.
Read all positive updates
Company Guidance
Textron guided FY2026 revenues of about $15.5 billion (up ~4.5% from $14.8B in 2025) with adjusted EPS of $6.40–$6.60 and manufacturing cash flow before pension of $700–$800 million; CapEx is expected to be about $650 million (up ~$383M versus 2025) including roughly $350M of incremental CapEx/long‑lead material to support MV‑75 LRIP, R&D ~$480M (down from $521M), and an average share count of ~175 million. Segment guidance: Textron Aviation ~$6.5B (+~9%) with ~11–12% margin (2025 recast 11.1%); Bell ~$4.4B (low‑single‑digit growth) with ~8–9% margin (note a potential unfavorable cumulative catch‑up adjustment of $60–$110M upon LRIP award, timing late‑2026/early‑2027, is not in guidance); Systems ~$1.35B (+~7%) with ~12–13% margin; Industrial ~$3.2B (low‑single‑digit organic growth) with ~4.5–5.5% margin; Finance segment profit ~ $20M; companywide segment profit ~ $1.5B. Corporate items assume ~$180M of corporate expense, ~$140M net interest (manufacturing), ~$200M LIFO provision, ~$30M amortization, ~$280M non‑service pension income, and a ~20.5% adjusted tax rate.Textron Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.80B | 13.70B | 13.68B | 12.87B | 12.38B |
| Gross Profit | 2.50B | 2.50B | 2.85B | 2.67B | 2.08B |
| EBITDA | 1.65B | 1.42B | 1.56B | 1.52B | 1.41B |
| Net Income | 921.00M | 824.00M | 921.00M | 861.00M | 746.00M |
Balance Sheet | |||||
| Total Assets | 18.13B | 16.84B | 16.86B | 16.29B | 15.83B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 1.44B | 2.18B | 2.04B | 2.12B |
| Total Debt | 4.28B | 3.96B | 4.25B | 3.94B | 4.15B |
| Total Liabilities | 10.25B | 9.63B | 9.87B | 9.18B | 9.01B |
| Stockholders Equity | 7.88B | 7.20B | 6.99B | 7.11B | 6.82B |
Cash Flow | |||||
| Free Cash Flow | 884.00M | 864.00M | 864.00M | 1.22B | 451.00M |
| Operating Cash Flow | 1.27B | 1.27B | 1.27B | 1.60B | 768.00M |
| Investing Cash Flow | -351.00M | -317.00M | -317.00M | -281.00M | -248.00M |
| Financing Cash Flow | -1.25B | -813.00M | -813.00M | -1.45B | 360.00M |
Textron Technical Analysis
Negative
87.47
Price Trends
94.14
Negative
89.65
Negative
85.44
Positive
Market Momentum
-1.68
Positive
37.33
Neutral
43.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXT, the sentiment is Negative. The current price of 87.47 is below the 20-day moving average (MA) of 93.00, below the 50-day MA of 94.14, and above the 200-day MA of 85.44, indicating a neutral trend. The MACD of -1.68 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of 43.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TXT.
Textron Risk Analysis
Textron disclosed 25 risk factors in its most recent earnings report. Textron reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Textron Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $96.36B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $64.06B | 35.53 | 8.28% | 1.61% | 2.83% | 47.00% | |
74 Outperform | $93.76B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $141.69B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
68 Neutral | $15.23B | 17.04 | 12.25% | 0.09% | 1.83% | -0.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $149.62B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
TXT
Textron
87.47
14.54
19.94%
BA
Boeing
190.52
17.21
9.93%
GD
General Dynamics
346.76
82.77
31.36%
LHX
L3Harris Technologies
343.00
138.75
67.93%
LMT
Lockheed Martin
615.84
186.09
43.30%
NOC
Northrop Grumman
679.00
174.91
34.70%
Textron Corporate Events
Executive/Board Changes
Textron Appoints Independent Financial Expert to Board
Positive
Feb 2, 2026
On January 30, 2026, Textron Inc.’s board of directors elected Cristina Méndez, Executive Vice President and Chief Financial Officer of Otis Worldwide Corporation, to join its board effective February 15, 2026, bringing extensive financ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.