Textron (TXT) AI Stock Analysis

• Market Cap: $14.15B
• Dividend Yield: 0.1%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.10
• Revenue Growth: 1.83%
• EPS Growth: -0.73%
• Country: US
• Employees: 34,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.55
• Shares Outstanding: 176,224,060
• 10 Day Avg. Volume: 1,495,961
• 30 Day Avg. Volume: 1,440,390
• PEG Ratio: 2.27
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 17.85
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 9.97
• Enterprise Value/Ebitda: 14.34
• 1Y Price Target: $88.83
• Price Target Upside: 10.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 6.11
• Revenue Forecast (FY): $14.75B

• Rating: 67 Neutral
• Price Target: $86.00 ▲(6.93% Upside)

Textron's overall stock score is driven by strong earnings call results and stable financial performance, despite bearish technical indicators and moderate valuation. The company's growth prospects and backlog expansion in key segments are significant positives.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand across key segments, enhancing Textron's market position and long-term financial health.

Backlog Expansion

Growing backlog in Aviation and Systems segments ensures future revenue streams, reflecting robust demand and operational success.

Leadership Transition

Internal leadership transition to Lisa Atherton as CEO suggests continuity and stability in strategic direction, supporting long-term growth.

Negative Factors

Margin Decline

Declining margins and free cash flow growth could pressure profitability and limit reinvestment capacity, affecting long-term competitiveness.

Industrial Revenue Decline

Decline in Industrial segment revenue, driven by divestitures, may impact diversification and revenue stability if not offset by other segments.

eAviation Segment Loss

Continued losses in the eAviation segment highlight challenges in achieving profitability, potentially affecting innovation and market expansion.

Textron Business Overview & Revenue Model

Company Description

Textron Inc. (TXT) is a multi-industry company based in the United States, known for its diverse portfolio of products and services across various sectors, including aerospace, defense, industrial, and finance. The company operates several well-known brands, including Cessna, Bell Helicopter, and Textron Systems, offering a range of aircraft, military vehicles, and industrial products. Textron is recognized for its innovation in advanced technologies and its commitment to serving both commercial and government customers worldwide.

How the Company Makes Money

Textron generates revenue through several key streams, primarily from the sale of aircraft, defense systems, and industrial products. The Aerospace segment, which includes Cessna and Bell, earns income through the manufacturing and sale of business jets, helicopters, and other aircraft, as well as through after-market services and parts. The Defense segment contributes significantly through contracts with the U.S. government and allied nations, providing military vehicles, reconnaissance systems, and other defense-related products. Additionally, Textron's Industrial segment sells a variety of equipment, including golf cars and utility vehicles, which supports its revenue. The company also benefits from financing services through Textron Financial, which provides loans and leases to customers purchasing its products. Strategic partnerships with government agencies and private sector clients further enhance Textron's revenue opportunities and market presence.

Textron Financial Statement Overview

Summary

Textron shows stable growth and profitability with a solid balance sheet and healthy cash flow generation. However, slight declines in margins and free cash flow growth are areas of concern.

Income Statement

Textron has shown consistent revenue growth with a TTM revenue increase of 2.63% compared to the previous year. The gross profit margin for TTM stands at 9.91%, which is moderate, while the net profit margin is 5.80%, indicating stable profitability. However, there has been a slight decline in EBIT and EBITDA margins over the years, which could be a concern if it continues.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.41, suggesting a manageable level of leverage. The equity ratio is 43.52%, indicating a solid equity base. However, the return on equity (ROE) for TTM at 10.98% is lower than the previous year's 11.43%, suggesting a slight dip in efficiency at generating returns on equity.

Cash Flow

Textron's cash flow from operations is strong, with an operating cash flow to net income ratio of 1.13 for TTM, indicating good cash generation relative to net income. However, the free cash flow has decreased by 13.69% from the previous period, which could be a point of concern if this trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2018	Dec 2017
Income Statement
Total Revenue	10.26B	13.70B	12.87B	12.38B	13.97B	14.20B
Gross Profit	1.76B	2.50B	2.67B	2.70B	2.38B	2.40B
EBITDA	1.23B	1.42B	1.51B	1.39B	1.97B	1.37B
Net Income	694.00M	824.00M	861.00M	746.00M	1.22B	307.00M
Balance Sheet
Total Assets	17.38B	16.84B	16.86B	16.29B	14.26B	15.34B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.44B	2.18B	2.04B	987.00M	1.08B
Total Debt	4.15B	3.59B	3.87B	3.56B	3.07B	3.09B
Total Liabilities	9.89B	9.63B	9.87B	9.18B	9.07B	9.69B
Stockholders Equity	7.49B	7.20B	6.99B	7.11B	5.19B	5.65B
Cash Flow
Free Cash Flow	357.00M	864.00M	1.13B	1.22B	740.00M	557.00M
Operating Cash Flow	568.00M	1.27B	1.49B	1.60B	1.11B	980.00M
Investing Cash Flow	-189.00M	-317.00M	-447.00M	-281.00M	620.00M	-662.00M
Financing Cash Flow	-1.21B	-813.00M	-1.09B	-1.45B	-1.86B	-360.00M

Textron Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 80.43
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 80.43 is below the 20-day moving average (MA) of 81.12, below the 50-day MA of 82.27, and above the 200-day MA of 77.00, indicating a neutral trend. The MACD of -0.79 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 50.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TXT.

Textron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CW	78 Outperform	$22.05B	47.68	18.53%	0.12%	9.51%	16.03%
WWD	74 Outperform	$15.73B	41.50	16.76%	0.41%	5.53%	5.56%
BWXT	73 Outperform	$18.11B	59.25	26.69%	0.49%	14.01%	10.92%
DRS	68 Neutral	$9.62B	36.67	10.35%	0.70%	12.27%	33.16%
TXT	67 Neutral	$14.15B	17.66	11.46%	0.10%	1.83%	-0.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RKLB	46 Neutral	$27.31B	―	-40.45%	―	54.36%	-26.35%

Textron Corporate Events

Textron Reports Strong Q3 2025 Financial Results

Textron Inc. is a multi-industry company that operates in the aircraft, defense, industrial, and finance sectors, known for its powerful brands such as Bell, Cessna, and Beechcraft. In its third quarter of 2025 earnings report, Textron reported a 5% increase in revenues, reaching $3.6 billion, with an adjusted earnings per share (EPS) of $1.55, up from $1.40 in the previous year. The company also noted a significant increase in backlog, driven by its Bell and Textron Systems segments.

Textron’s Earnings Call Highlights Growth and Optimism

Textron’s Third Quarter Earnings Call Highlights Growth and Optimism

Textron Announces New CEO Appointment Effective 2026

On October 22, 2025, Textron Inc. announced the appointment of Lisa M. Atherton as the next President and CEO, effective January 4, 2026. Atherton, who has been with Textron since 2007, will succeed Scott C. Donnelly, who will transition to the role of Executive Chairman. This leadership change is part of a comprehensive succession planning process aimed at ensuring continued success for the company. The transition reflects Textron’s strategic focus on leadership continuity and growth, with Atherton bringing extensive experience from her previous roles within the company. Donnelly’s new role as Executive Chairman will allow him to continue contributing to Textron’s strategic direction and support Atherton in her new position.

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

Textron Enters New Credit Agreement with JPMorgan

On October 16, 2025, Textron Inc. entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., and other lenders, replacing its previous 5-Year Credit Agreement dated October 22, 2022, which was terminated ahead of its scheduled expiration in 2027. This strategic move signifies a shift in Textron’s financial arrangements, potentially impacting its financial obligations and operational flexibility.

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

Textron Announces Strategic Realignment of eAviation

On October 16, 2025, Textron Inc. announced a strategic realignment of its Textron eAviation business, effective January 4, 2026, to integrate its activities into other segments for improved operational efficiency. This restructuring will see parts of Textron eAviation, including Pipistrel, incorporated into the Textron Aviation segment, while military applications and R&D will move to Textron Systems, enhancing customer access and leveraging expertise.

The most recent analyst rating on (TXT) stock is a Hold with a $92.00 price target. To see the full list of analyst forecasts on Textron stock, see the TXT Stock Forecast page.