Textron (TXT) AI Stock Analysis

• Market Cap: $15.99B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.05
• Revenue Growth: 1.83%
• EPS Growth: -0.73%
• Country: US
• Employees: 34,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.73
• Shares Outstanding: 176,224,060
• 10 Day Avg. Volume: 2,389,601
• 30 Day Avg. Volume: 1,650,154
• PEG Ratio: 0.96
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 17.75
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 7.18
• Enterprise Value/Ebitda: 10.91
• 1Y Price Target: $97.44
• Price Target Upside: 7.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 6.51
• Revenue Forecast (FY): $15.53B

• Rating: 68 Neutral
• Price Target: $96.00 ▲(5.81% Upside)

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

MV-75 program progress and manufacturing buildout

Material engineering and supply commitments plus new factory capacity signal multi-year production visibility. Advanced buildout reduces execution risk over time, supports sustained revenue ramp as LRIP progresses, and creates a durable manufacturing footprint for derivative programs and aftermarket revenue.

Improving balance-sheet leverage

Lowered leverage and healthy ROE provide financial flexibility to fund capex, support LRIP spending, and absorb cyclical shocks. A modest debt ratio improves covenant headroom and reduces refinancing risk, making cash flow variability the primary driver of leverage sustainability over the medium term.

Consistent cash generation and capital returns

Reliable operating cash and meaningful buybacks indicate strong free cash generation and disciplined capital allocation. Sustained manufacturing cash flow supports investment in programs and shareholder returns, and provides a buffer for working-capital swings inherent to aerospace production cycles.

Negative Factors

Industrial segment weakness and lower profitability

A materially weaker Industrial unit reduces revenue diversification and weights the company toward cyclical aerospace exposures. Persistently lower industrial volumes and margins can drag consolidated profitability, constrain free cash flow in downturns, and require management attention to restore structural margins.

Supply‑chain and workforce constraints

Chronic supplier and labor bottlenecks erode throughput, raise unit costs, and lengthen conversion of backlog to revenue. For a complex OEM, persistent constraints can delay deliveries, increase warranty or rework costs, and compress margins for multiple quarters while recovery and hiring take time.

MV‑75 LRIP catch‑up risk and elevated CapEx

Large incremental LRIP spending plus a potential $60–$110M catch‑up adjustment create near‑term cash and earnings risk. Elevated capex shifts cash conversion timing and magnifies the consequences of production hiccups, making execution and timing critical to avoid degrading leverage or free cash flow.

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 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.

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 aircraft, and related support services. The Bell segment focuses on helicopters and other vertical lift aircraft, generating revenue from both military and commercial contracts. Textron Systems contributes through the sale of defense and security products, including unmanned systems and advanced weaponry. The Industrial segment includes a broad range of products such as golf cars and specialized vehicles, while the Finance segment provides financing solutions for customers purchasing Textron products. Key revenue streams also include after-market services, parts sales, and maintenance contracts, which provide ongoing income. Significant partnerships with government agencies and defense contracts further bolster Textron's earnings potential.

Textron Financial Statement Overview

Summary

Fundamentals are generally healthy: improving leverage with manageable debt-to-equity (~0.45), consistently positive free cash flow with a strong latest-year rebound, and solid (though not best-in-class) profitability. Offsetting this, the latest period shows a revenue decline (-3.2%) and some margin normalization versus stronger 2022–2023 levels, with periodic cash-flow volatility typical of aerospace working-capital cycles.

Income Statement

Revenue has grown steadily from 2021–2024, but the latest annual period shows a modest decline (revenue growth -3.2%). Profitability is solid for the sector with roughly 18% gross margin and ~6% net margin in the most recent periods, and operating profitability has been fairly consistent. However, margins were stronger in 2022–2023 than in the latest period, suggesting some recent pressure on operating performance.

Balance Sheet

Leverage appears manageable with debt-to-equity improving versus 2020 and sitting around ~0.45 in the latest period, supported by a growing equity base. Returns on equity have been consistently healthy (roughly 10–13% in recent years), indicating decent capital efficiency. The main watch item is that total debt remains meaningful in absolute terms, so earnings stability matters to keep leverage comfortable through cycles.

Cash Flow

Cash generation is a clear strength: operating cash flow remains strong and free cash flow is consistently positive. Free cash flow rebounded strongly in the latest period (up ~21%), although it has been choppy across years. Free cash flow runs at roughly ~70% of net income recently, which is supportive, but the operating cash flow relative to net income has been volatile year to year—worth monitoring for working-capital swings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.80B	14.80B	13.70B	13.68B	12.87B	12.38B
Gross Profit	2.50B	2.50B	2.50B	2.85B	2.67B	2.08B
EBITDA	1.65B	1.65B	1.42B	1.56B	1.52B	1.41B
Net Income	921.00M	921.00M	824.00M	921.00M	861.00M	746.00M
Balance Sheet
Total Assets	18.13B	18.13B	16.84B	16.86B	16.29B	15.83B
Cash, Cash Equivalents and Short-Term Investments	1.94B	1.94B	1.44B	2.18B	2.04B	2.12B
Total Debt	3.53B	3.53B	3.59B	3.87B	3.56B	3.77B
Total Liabilities	10.25B	10.25B	9.63B	9.87B	9.18B	9.01B
Stockholders Equity	7.88B	7.88B	7.20B	6.99B	7.11B	6.82B
Cash Flow
Free Cash Flow	884.00M	884.00M	864.00M	1.13B	1.22B	451.00M
Operating Cash Flow	1.27B	1.27B	1.27B	1.49B	1.60B	768.00M
Investing Cash Flow	-351.00M	-351.00M	-317.00M	-447.00M	-281.00M	-248.00M
Financing Cash Flow	-1.25B	-1.25B	-813.00M	-1.09B	-1.45B	360.00M

Textron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXT, the sentiment is Positive. The current price of 90.73 is below the 20-day moving average (MA) of 92.09, above the 50-day MA of 88.57, and above the 200-day MA of 81.50, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 37.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXT.

Textron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LHX	75 Outperform	$63.42B	41.22	8.20%	1.61%	2.83%	47.00%
NOC	75 Outperform	$97.89B	24.24	26.17%	1.55%	-0.14%	72.35%
GD	74 Outperform	$95.55B	22.99	17.66%	1.73%	11.86%	17.39%
LMT	74 Outperform	$138.68B	29.24	76.87%	2.77%	2.88%	-35.15%
TXT	68 Neutral	$15.99B	17.35	12.24%	0.09%	1.83%	-0.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	56 Neutral	$185.30B	124.45	289.00%	―	10.19%	-6.03%

Textron Corporate Events

Textron Appoints Independent Financial Expert to Board

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 financial leadership experience from both the elevator and escalator industry and over 15 years in senior finance roles in the global telecommunications sector. She will participate in Textron’s standard director compensation and indemnity arrangements, serve on the Audit Committee and the Nominating and Corporate Governance Committee, and has been deemed an independent director under New York Stock Exchange standards as well as qualifying as an “audit committee financial expert,” a move that strengthens Textron’s board oversight capabilities and financial governance framework.

The most recent analyst rating on (TXT) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on Textron stock, see the TXT Stock Forecast page.