Core Insights - Textron reported fourth-quarter 2025 results that met earnings expectations and exceeded revenue forecasts, but shares fell 8% intra-day due to weaker-than-expected guidance for 2026 [1] Group 1: Financial Performance - Adjusted earnings were $1.73 per share on revenue of $4.2 billion, matching earnings consensus and topping revenue expectations of $4.1 billion [1] - Revenue rose 16% year over year, with full-year revenue increasing 8% to $14.8 billion [1] Group 2: Segment Performance - Textron Aviation recorded a 36% revenue increase to $1.7 billion, delivering 49 jets during the quarter compared to 32 a year earlier, as operations rebounded from a late-2024 strike [2] - Bell helicopter revenue climbed 11% to $1.3 billion, driven by higher military deliveries tied to the U.S. Army's MV-75 program [2] Group 3: Future Guidance - For fiscal 2026, Textron forecast adjusted earnings of $6.40 to $6.60 per share on revenue of approximately $15.5 billion, below the analyst consensus of $6.84 [3] - Manufacturing cash flow before pension contributions is expected to range between $700 million and $800 million [3]

Core Insights - Textron Inc. (TXT) reported fourth-quarter 2025 adjusted earnings of $1.73 per share, slightly missing the Zacks Consensus Estimate of $1.74 by 0.8%, but showing a significant increase of 29.1% from $1.34 in the same quarter last year [1] - The company achieved total revenues of $4.18 billion, exceeding the Zacks Consensus Estimate of $4.14 billion by 0.8%, and reflecting a 15.7% increase from $3.61 billion in the prior year [2] - For the full year 2025, adjusted earnings were reported at $6.10 per share, up from $5.48 in 2024, while total revenues reached $14.8 billion compared to $13.7 billion in the previous year [1][2] Segment Performance - Textron Aviation segment revenues surged 36% year over year to $1.7 billion, driven by higher deliveries of Citation jets and commercial turboprops, with a total of 49 jets and 43 turboprops delivered [3] - The Bell segment reported revenues of $1.3 billion, an 11% increase from the previous year, attributed to higher volume on the U.S. Army's MV-75 program, despite a slight decline in commercial revenues [4] - Textron Systems generated revenues of $323 million, up $12 million from the prior year, while the Industrial segment saw a decline of $48 million to $821 million due to the divestiture of the Powersports business [5] Financial Overview - As of January 3, 2026, Textron's cash and cash equivalents stood at $1.94 billion, an increase from $1.39 billion a year earlier, with cash generated from operating activities amounting to $1.33 billion compared to $1.01 billion in 2024 [8] - Capital expenditures for the year totaled $383 million, up from $364 million in the previous year, while long-term debt increased to $3.53 billion from $2.89 billion [8] Guidance - Textron anticipates revenues of approximately $15.5 billion for 2026, with adjusted earnings expected to be in the range of $6.40 to $6.60 per share, compared to the Zacks Consensus Estimate of $6.67 per share [9]

Financial Data and Key Metrics Changes - Textron reported a revenue growth of 16% in Q4 2025, totaling $4.2 billion, and a full-year revenue increase of 8% to $14.8 billion [4][20] - Segment profit for Q4 2025 was $380 million, up 34% year-over-year, and for the full year, it reached $1.4 billion, a 14% increase [19][20] - Adjusted EPS for Q4 was $1.73, compared to $1.34 in the previous year, and for the full year, it was $6.10, up from $5.48 [20] Business Line Data and Key Metrics Changes - Textron Aviation saw a revenue increase of 36% in Q4, totaling $1.7 billion, and a full-year revenue growth of 13% to $6 billion [21][22] - Bell's revenue grew by 11% in Q4 to $1.3 billion, with a full-year increase of 20% to $4.3 billion, although segment profit decreased by $9 million year-over-year [23][24] - Textron Systems reported a 4% revenue increase in Q4 to $323 million, with a full-year revenue of $1.2 billion, slightly up from the previous year [24] Market Data and Key Metrics Changes - Textron Aviation ended the year with a backlog of $7.7 billion, while Bell's backlog increased to $7.8 billion [22][24] - The general aviation industry remains healthy, with Textron Aviation experiencing strong order flow and a nearly $8 billion backlog [11][12] Company Strategy and Development Direction - The company is focused on executing its growth strategy through ongoing investments in new products and programs to drive organic growth and margin expansion [8] - Lisa Atherton emphasized the importance of operational rigor, capital allocation, and building resilience across all business lines [36][37] - Textron plans to eliminate the eAviation segment as a separate reporting entity to better leverage existing capabilities across its businesses [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance of Textron Aviation and the MV-75 program, which is expected to accelerate production and revenue growth [11][12][45] - The company anticipates 2026 revenues of approximately $15.5 billion, reflecting a 4.5% increase from 2025, with adjusted EPS projected between $6.40 and $6.60 [17][33] Other Important Information - Manufacturing cash flow before pension contributions for 2025 was $969 million, up $277 million from 2024 [20] - The company repurchased approximately 10.7 million shares in 2025, returning $822 million to shareholders [27] Q&A Session Summary Question: What are the top priorities for the company now that Lisa is CEO? - Lisa Atherton outlined three priorities: execution, portfolio focus, and building resilience across the business [36][37] Question: How should we think about the MV-75 program in the near and medium term? - Lisa Atherton stated that the Army's push for acceleration has allowed for significant progress, with production timelines moved forward by 2.5 to 3 years [45] Question: Will Textron focus on growing or pruning its portfolio? - Lisa Atherton indicated that the company will evaluate each business for returns and strategic fit, aiming to accelerate growth in high-quality aerospace and defense areas [50][52] Question: How is Textron managing supply chain challenges? - Lisa Atherton mentioned ongoing recovery efforts in the supply chain, particularly with key components like engines, and emphasized workforce training initiatives [59][60] Question: What is the outlook for aviation margins? - David Rosenberg confirmed that the company expects to maintain a margin range of 20%-25% as efficiency and productivity improve [88]

Financial Data and Key Metrics Changes - Textron reported a revenue growth of 16% in Q4 2025, totaling $4.2 billion, and an 8% increase for the full year, reaching $14.8 billion [4][20] - Segment profit for Q4 2025 was $380 million, up 34% year-over-year, and for the full year, it was $1.4 billion, up 14% [19][20] - Adjusted EPS for Q4 was $1.73, compared to $1.34 in the previous year, and for the full year, it was $6.10, up from $5.48 [20] Business Line Data and Key Metrics Changes - Textron Aviation saw a revenue increase of 36% in Q4, totaling $1.7 billion, and a 13% increase for the full year, reaching $6 billion [21][22] - Bell's revenue grew by 11% in Q4 to $1.3 billion, and for the full year, it increased by 20% to $4.3 billion [23] - Textron Systems reported a 4% revenue increase in Q4, totaling $323 million, and a slight increase for the full year, reaching $1.2 billion [24] - Industrial segment revenues decreased by 5.5% in Q4 to $821 million, primarily due to the divestiture of the Powersports business [25] Market Data and Key Metrics Changes - Textron Aviation ended the year with a backlog of $7.7 billion, while Bell's backlog was $7.8 billion, reflecting growth in both military and commercial sectors [22][23] - The general aviation industry remains healthy, with Textron Aviation experiencing strong order flow and a nearly $8 billion backlog [11][12] Company Strategy and Development Direction - The company is focused on executing its growth strategy through ongoing investments in new products and programs to drive organic growth and margin expansion [8] - Textron plans to continue its investment in the MV-75 program, which is central to the Army's Transformation Initiative, and aims to accelerate production [12][14] - The company is also looking to enhance its supply chain resilience and vertical integration to mitigate risks and improve efficiency [36][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position and future opportunities, particularly in Textron Aviation and the MV-75 program [11][12] - The outlook for 2026 includes projected revenues of approximately $15.5 billion, reflecting a 4.5% increase from 2025, and adjusted EPS in the range of $6.40-$6.60 [17][33] - The company anticipates manufacturing cash flow before pension contributions to be between $700 million and $800 million [28] Other Important Information - The company repurchased approximately 2.3 million shares in Q4 2025, returning $187 million to shareholders, and a total of 10.7 million shares for the year, returning $822 million [27] - Textron is eliminating the Textron eAviation segment as a separate reporting entity to realign its business activities [28] Q&A Session Summary Question: What are the top priorities for the company now that Lisa is CEO? - Lisa outlined three priorities: execution, portfolio focus, and building resilience across the business [36] Question: How should we think about the MV-75 program in the near and medium term? - Lisa indicated that the Army's push for acceleration has allowed for significant progress, with production timelines moved forward by 2.5-3 years [44] Question: Will Textron grow or prune its portfolio? - Lisa emphasized the need for ongoing evaluation of each business against performance criteria, aiming for growth in high-quality aerospace and defense areas [50][52] Question: How is Textron managing supply chain challenges? - Lisa noted that while recovery is ongoing, key components like engines remain a challenge, and efforts are being made to upskill the workforce [60] Question: What is the expected revenue impact from the MV-75 program? - David mentioned that the program could yield between 40 and 60 units per year, significantly increasing overall revenue [71]

Financial Data and Key Metrics Changes - Textron reported a revenue growth of 16% in Q4 2025, totaling $4.2 billion, and a full-year revenue increase of 8% to $14.8 billion [3][19] - Segment profit for Q4 2025 was $380 million, up 34%, and for the full year, it reached $1.4 billion, up 14% [3][19] - Adjusted EPS for Q4 was $1.73, compared to $1.34 in the previous year, and for the full year, it was $6.10, up from $5.48 [3][19] - Manufacturing cash flow before pension contributions was $510 million in Q4, up $204 million year-over-year, and $969 million for the full year, an increase of $277 million [19][25] Business Line Data and Key Metrics Changes - **Textron Aviation**: Revenue increased by 36% in Q4 to $1.7 billion, with full-year revenue up 13% to $6 billion. Segment profit for Q4 was $208 million, up 108% [20][21] - **Bell**: Revenue grew by 11% in Q4 to $1.3 billion, with full-year revenue up 20% to $4.3 billion. Segment profit for Q4 was $101 million, down from the previous year [21][22] - **Textron Systems**: Revenue increased by 4% in Q4 to $323 million, with full-year revenue slightly up to $1.2 billion. Segment profit for Q4 was $43 million, up $1 million [22] - **Industrial**: Revenue decreased by 5.5% in Q4 to $821 million, with full-year revenue down 9% to $3.2 billion [23] Market Data and Key Metrics Changes - Textron Aviation ended the year with a backlog of $7.7 billion, while Bell's backlog was $7.8 billion, reflecting growth in both military and commercial sectors [20][21] - The general aviation industry remains healthy, with Textron Aviation experiencing strong order flow and a nearly $8 billion backlog [11][12] Company Strategy and Development Direction - The company is focused on executing its growth strategy through ongoing investments in new products and programs to drive organic growth and margin expansion [8] - Textron is prioritizing operational rigor, capital allocation, and building resilience across its businesses [34] - The MV-75 program is a key focus, with significant investments in production capacity and a push for accelerated timelines [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position and future opportunities, particularly in the defense sector and the MV-75 program [9][12] - The company anticipates revenue growth of approximately 4.5% in 2026, projecting revenues of about $15.5 billion and adjusted EPS in the range of $6.40-$6.60 [16][30] Other Important Information - The company repurchased approximately 10.7 million shares in 2025, returning $822 million to shareholders [25] - Textron is eliminating the Textron eAviation segment as a separate reporting entity to streamline operations [26] Q&A Session Summary Question: What are the top priorities for the company now that Lisa is CEO? - Lisa outlined three priorities: execution, portfolio focus, and building resilience across businesses [33] Question: How should we think about the MV-75 program in the near and medium term? - The Army's push for acceleration has allowed Textron to move the program forward by about 2.5-3 years, with aircraft deliveries expected to begin sooner [41] Question: Will Textron grow or prune its portfolio? - Lisa indicated that management will evaluate each business for returns and strategic fit, aiming to accelerate growth in high-quality aerospace and defense areas [46] Question: How is Textron managing supply chain challenges? - The company is focused on recovering the supply chain and addressing workforce attrition through in-house training programs [58] Question: What is the expected impact of the MV-75 program on future revenues? - The MV-75 program is expected to significantly increase revenue, with historical double-digit margins anticipated as production ramps up [70]

分组1 - Textron reported quarterly earnings of $1.73 per share, missing the Zacks Consensus Estimate of $1.74 per share, but showing an increase from $1.34 per share a year ago, resulting in an earnings surprise of -0.80% [1] - The company posted revenues of $4.18 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.83% and increasing from $3.61 billion year-over-year [2] - Textron has outperformed the S&P 500 with an 8.1% increase in share price since the beginning of the year, compared to the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $3.51 billion, and for the current fiscal year, it is $6.67 on revenues of $15.33 billion [7] - The Aerospace - Defense industry, to which Textron belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Viewpoint - Textron experienced an increase in fourth-quarter results, driven by strong demand in its aviation segment, particularly in aftermarket services and higher aircraft deliveries [1] Company Performance - The aviation segment of Textron showed significant growth due to robust demand for aftermarket services [1] - There was an increase in aircraft deliveries, contributing positively to the overall performance in the fourth quarter [1]

Q4 2025 Earnings Call Presentation Contents JANUARY 28, 2026 THE DATA IN THIS PACKAGE SHOULD BE READ IN CONJUNCTION WITH THE TEXTRON EARNINGS RELEASE AND ACCOMPANYING TABLES. Forward-looking Information Certain statements in this package and other oral and written statements made by Textron from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-l ...

Core Insights - Textron Inc. has secured a $163.4 million defense contract to supply 65 Mobile Strike Force Vehicle MSFV Commando Select vehicles and spare parts to Ukraine, enhancing its military capabilities [1][2] - Jefferies has raised Textron's price target from $95 to $115, reflecting confidence in the company's financial performance and projecting fourth-quarter earnings of $1.41 per share [3] Company Overview - Textron Inc. is a global multi-industry company involved in designing, manufacturing, and selling aircraft, defense products, and industrial products, with well-known brands in aerospace, defense, specialized vehicles, and industrial sectors [4]

Financial Performance - Fourth quarter 2025 income from continuing operations was $1.33 per share, up from $0.76 per share in Q4 2024; adjusted income was $1.73 per share, compared to $1.34 per share in Q4 2024[2][3] - Full year 2025 revenue reached $14.8 billion, an 8% increase from 2024; segment profit for the year was $1.4 billion, up 14% from the prior year[3][8] - Net income for the twelve months ended January 3, 2026, was $921 million, compared to $824 million for the twelve months ended December 28, 2024, reflecting an increase of 11.8%[26] - Diluted earnings per share from continuing operations increased to $5.12 for the twelve months ended January 3, 2026, compared to $4.34 for the same period in 2024, a rise of 18%[27] - Income from continuing operations for Q4 2026 was $236 million, up from $141 million in Q4 2024, representing a 67.4% increase[41] - Adjusted income from continuing operations for Q4 2026 was $307 million, compared to $248 million in Q4 2024, reflecting a 23.7% growth[41] Revenue Growth - Textron Aviation revenues were $1.7 billion in Q4 2025, a 36% increase from Q4 2024, driven by higher aircraft and aftermarket parts revenues[9][10] - Bell's revenues increased by 11% to $1.3 billion in Q4 2025, primarily due to higher military revenues from the MV-75 program[11][13] - Textron is forecasting 2026 revenues of approximately $15.5 billion, an increase from $14.8 billion in 2025; expected GAAP earnings per share for 2026 is projected to be between $5.39 and $5.59[6] Cash Flow and Liquidity - Net cash provided by operating activities for the manufacturing group was $1.3 billion for the full year, with manufacturing cash flow before pension contributions totaling $969 million, up from $692 million in 2024[5][7] - Cash and equivalents at the end of the period on January 3, 2026, were $1,940 million, up from $1,386 million on December 28, 2024, indicating a growth of 40%[30] - Net cash from operating activities for the three months ended January 3, 2026, was $698 million, an increase of 56% from $447 million for the same period in 2024[32] - Total cash flows from continuing operations for Q4 2026 were $502 million, compared to $111 million in Q4 2024, showing a significant increase[41] - Cash and equivalents at the end of Q4 2026 were $2,025 million, up from $1,441 million at the end of Q4 2024, representing a 40.5% increase[41] Segment Performance - Textron Systems revenues were $323 million in Q4 2025, a 4% increase from the previous year, with a backlog of $3.3 billion[14] - Industrial segment revenues were $821 million, down 5.5% from Q4 2024, largely due to the divestiture of the Powersports business[15][16] - Textron eAviation segment revenues were $7 million in Q4 2025, down from $11 million in Q4 2024, with a segment loss of $15 million[17] - Segment profit for Textron Aviation was $208 million for the three months ended January 3, 2026, up from $100 million in the same period of 2024, representing a 108% increase[26] - The company reported a segment profit of $380 million for the three months ended January 3, 2026, compared to $283 million for the same period in 2024, reflecting a 34.3% increase[26] Capital Expenditures - Capital expenditures for the three months ended January 3, 2026, were $173 million, compared to $153 million for the same period in 2024, showing an increase of 13.1%[32] - Capital expenditures for Q4 2026 were $173 million, compared to $153 million in Q4 2024, reflecting a 13.1% increase[46] Other Financial Metrics - Total assets increased to $18,129 million as of January 3, 2026, compared to $16,838 million as of December 28, 2024, marking a growth of 7.7%[30] - The company recorded a LIFO inventory provision of $64 million for Q4 2026, compared to $61 million in Q4 2024, indicating a 4.9% increase[41] - The company reported a net cash used in business acquisitions of $1 million in Q4 2026, compared to $13 million in Q4 2024[46]