Textron (TXT) AI Stock Analysis

• Market Cap: $15.31B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 19.1
• 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): 1.55
• Shares Outstanding: 176,224,060
• 10 Day Avg. Volume: 1,246,625
• 30 Day Avg. Volume: 1,187,189
• 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: 1.15
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 7.31
• Enterprise Value/Ebitda: 11.16
• 1Y Price Target: $89.14
• Price Target Upside: 2.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 6.11
• Revenue Forecast (FY): $14.74B

• Rating: 75 Outperform
• Price Target: $95.00 ▲(8.98% Upside)

Textron's overall stock score is driven by strong financial performance and positive earnings call sentiment. The technical analysis supports a bullish outlook, while the valuation indicates the stock is fairly priced. The issuance of notes for growth initiatives further enhances the company's strategic positioning.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective sales strategies, supporting long-term business expansion.

Leadership Continuity

Smooth leadership transition ensures strategic continuity and leverages Atherton's experience to drive future growth.

Backlog Growth

Growing backlogs in key segments indicate strong future demand and revenue visibility, enhancing long-term stability.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth may limit investment capacity and affect financial flexibility, posing a risk to future growth.

Industrial Revenue Decline

Decreased industrial revenues, partly due to divestitures, could impact overall profitability and segment performance.

FAA Airworthiness Directive

New regulatory requirements may increase compliance costs and operational challenges, affecting long-term operational efficiency.

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

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 2021	Dec 2020
Income Statement
Total Revenue	14.16B	13.70B	12.87B	12.38B	11.65B	13.63B
Gross Profit	2.41B	2.50B	2.67B	2.70B	2.16B	2.85B
EBITDA	1.57B	1.42B	1.51B	1.39B	827.00M	1.52B
Net Income	892.00M	824.00M	861.00M	746.00M	309.00M	815.00M
Balance Sheet
Total Assets	17.38B	16.84B	16.86B	16.29B	15.83B	15.40B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.44B	2.18B	2.04B	2.12B	2.25B
Total Debt	4.15B	3.59B	3.87B	3.56B	3.77B	4.37B
Total Liabilities	9.89B	9.63B	9.87B	9.18B	9.01B	9.55B
Stockholders Equity	7.49B	7.20B	6.99B	7.11B	6.82B	5.84B
Cash Flow
Free Cash Flow	728.00M	864.00M	1.13B	1.22B	451.00M	675.00M
Operating Cash Flow	1.12B	1.27B	1.49B	1.60B	768.00M	1.01B
Investing Cash Flow	-352.00M	-317.00M	-447.00M	-281.00M	-248.00M	-266.00M
Financing Cash Flow	-1.15B	-813.00M	-1.09B	-1.45B	360.00M	-502.00M

Textron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 87.17 is above the 20-day moving average (MA) of 82.73, above the 50-day MA of 82.34, and above the 200-day MA of 78.00, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 70.52 is Negative, neither overbought nor oversold. The STOCH value of 87.14 is Negative, 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
GD	80 Outperform	$92.44B	22.18	17.78%	1.73%	11.86%	17.39%
NOC	76 Outperform	$79.93B	20.10	26.15%	1.58%	-0.14%	72.35%
TXT	75 Outperform	$15.31B	19.11	11.46%	0.09%	1.83%	-0.73%
LMT	70 Outperform	$108.28B	26.12	62.78%	2.78%	2.88%	-35.15%
LHX	70 Neutral	$53.49B	30.70	9.13%	1.67%	2.83%	47.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	54 Neutral	$155.61B	―	―	―	10.19%	-6.03%

Textron Corporate Events

Textron Issues $500 Million Notes for Growth

On October 31, 2025, Textron Inc. issued and sold $500 million of its 4.950% Notes due March 15, 2036. This financial move is part of Textron’s strategic efforts to manage its capital structure and potentially fund future growth initiatives.

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.

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.

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.