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what it is
Textron builds business jets, helicopters, defense systems, golf carts, and industrial parts across five businesses.
how it gets paid
Last year Textron made $14.8B in revenue. Textron Aviation was the main engine at $5.8B, or 39% of sales.
why it's growing
Revenue grew 8.0% last year. Textron likely delivered record profits and strong earnings growth in 2025 despite lower aircraft deliveries.
what just happened
Q4 2025 adjusted diluted EPS was about $1.73 on ~$4.2B revenue— roughly in line with third-party consensus digests; FY 2025 adjusted diluted EPS was about $6.10 (Textron Jan 2026 release).
At a glance
A balance sheet — strong enough to weather a downturn
75/100 earnings predictability — reasonably predictable
17.1x trailing p/e — the market's not buying it — or you found a deal
0.1% dividend yield — cash in your pocket every quarter
10.0% return on capital — nothing to write home about
xvary composite: 79/100 — average
What they do
Textron builds business jets, helicopters, defense systems, golf carts, and industrial parts across five businesses.
Textron wins because your exposure is split across five businesses, not one aircraft program. Aviation was ~39% of revenue in the mix shown here, while Bell and Industrial are large wedges too. Through the first nine months of 2025, jet deliveries fell to 119 from 122, and military helicopter deliveries fell to 7 from 16— yet FY 2025 adjusted diluted EPS still moved up to ~$6.10 from ~$5.48 (Textron FY 2025 materials).
How they make money
$14.8B
annual revenue · their business grew +8.0% last year
Textron Aviation
$5.8B
Bell
$3.8B
Textron Systems
$1.3B
Industrial
$3.8B
Finance
$0.1B
The products that matter
business and piston aircraft
Textron Aviation
~$5.8B · largest segment
this is the largest business at roughly $5.8B on the segment table here (~40% of consolidated revenue). If you want one segment to keep the thesis intact, this is it— verify segment dollars in the 10-K.
40% of revenue
military and commercial helicopters
Bell
$3.7B · flat growth
Bell is about one-quarter of revenue and one of the three areas management flagged for 2026 profit pressure. Flat sales are fine. Margin pressure is the problem.
25% of revenue
defense systems and vehicles
Textron Systems
$1.5B · +5% growth
this $1.5B defense arm is only 10% of revenue, but it gives you some government-contract stability inside a cyclical industrial mix.
defense ballast
Key numbers
$6.20
fy2026 eps est
$19B
fy2028 rev est
17.1x
trailing p/e
0.1%
dividend yield
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $3.0B (16% of capital)
- net profit margin 8.3% — keeps 8 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in TXT 3 years ago → it's now worth $13,010.
The index would have given you $13,920.
source: institutional data · total return
What just happened
reported Q4 / FY25
Q4 2025 revenue was ~$4.18B; adjusted diluted EPS was about $1.73— roughly in line with a ~$1.74 consensus in third-party summaries (verify vs. your data vendor).
FY 2025 revenue ~$14.8B (+~8% YoY) with adjusted diluted EPS ~$6.10 (+~11% YoY vs. ~$5.48). 2026 guidance disappointed vs. some street models— read the January 2026 Textron release for the forward outlook.
~$4.18B
Q4 2025 revenue
~$1.73
adj. diluted EPS
~$6.10
FY adj. diluted EPS
the number that mattered
FY adjusted EPS still expanded to ~$6.10 while jet and military helicopter deliveries were soft— the stock reaction often hinges more on the 2026 outlook than on one quarter’s adjusted print.
-
textron likely delivered record profits and strong earnings growth in 2025 despite lower aircraft deliveries.
-
through the first nine months of this past year, jet deliveries fell by three planes to 119 units compared to last year.
-
military helicopter and tilt-rotor deliveries fell to seven aircraft from 16.
-
commercial helicopters shipped dropped from 94 in 2024 to 91 so far in 2025.just one part can delay the shipment of a plane, but we think the strategy has been to not add capacity and to keep the market tight.
-
the anemic volume growth has been more than offset by higher prices.selling prices have been rising for new aircraft, but they took a while to work through the long backlog.
source: Textron Q4/FY 2025 release (Jan 28, 2026) · textron.com
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What could go wrong
the #1 risk is profit pressure at Bell, Industrial, and eAviation. Record sales did not save the stock because investors heard one thing: margins are getting harder from here.
med
bell and industrial stay under pressure
Management flagged Bell, Industrial, and eAviation as pressure points for 2026. Bell and Industrial alone account for $7.4B of revenue, so this is not a rounding error.
If those segments squeeze margins while revenue still climbs, earnings disappoint anyway. That is exactly how you get record sales and a falling stock.
med
aviation has to do more of the lifting
Textron Aviation is the largest business at roughly $5.8B on this snapshot’s segment view. The catch is that investors now need it to offset weakness elsewhere.
If aviation growth slows or margins slip, the strongest part of the portfolio stops covering for the rest.
med
ceo transition meets a skeptical market
A new CEO steps in on January 4, 2026, right after the company reset expectations. Leadership changes are easier when the numbers are moving your way.
If early messaging changes the plan or misses the first reset, you get another round of estimate cuts before confidence rebuilds.
med
industrial cyclicality is still real
Industrial is $3.7B of revenue, or about one-quarter of the company. Turf care and fuel systems do not get the valuation grace that defense and aviation sometimes do.
A softer demand cycle would pressure the part of Textron with the thinnest moat, and that pulls down the group multiple.
Bell and Industrial represent $7.4B of revenue by themselves. If the pressure management flagged turns into a sustained margin issue, the current 17.1x multiple does not look cheap for long.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
q1 2026 earnings
This is the first report under Lisa Atherton. You want to hear whether the profit-pressure language gets repeated, narrowed, or dropped.
metric
aviation margin and mix
The core ~$5.8B aviation unit has the cleanest story on the page. If its margin weakens, the best segment stops carrying the rest.
trend
institutional buying streak
Institutions were net buyers for two straight quarters. If that reverses after the guidance miss, smart money patience is thinning.
risk
2026 revenue path to $15.5B
Management is still aiming for about $15.5B in revenue. If sales hit the mark but profit does not, the issue is mix and execution, not demand.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts still expect better-than-average performance over the next 12 months.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks, thanks in part to the A balance sheet.
chart momentum
average
technical score 3 — the chart is not broken, but it is not screaming strength either.
earnings predictability
75 / 100
guidance has been fairly reliable. The irony is that the latest reset hurt because investors were used to steadier delivery.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 325 buyers vs. 263 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$74
$139
$91
current price
$107
target midpoint · +18% from current · 3-5yr high: $160 (+75% · 15% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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