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olivLaw · US equity research

Textron Inc. TXT

Aircraft & Parts · SIC 3720 · Vertical: Transportation equipment (SIC 372x)

86.65USD−1.25% · 1 dayClose 04 Nov 2026

Textron Inc. is a multi-industry American group operating in aviation (Textron Aviation), helicopters and tiltrotors (Bell), defense (Textron Systems), industrial components and specialized vehicles, plus a captive finance unit. Revenues were 14.8 billion USD in 2025, and in July 2026 the company reported that it had started a sale process for the Industrial segment, which makes its current strategic direction worth understanding.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Textron Inc. (TXT) stock was 86.65 USD (−1.25% on the day), with market capitalisation 14.7 bn USD, P/E 15.6 on diluted EPS of 5.56 USD over the last 12 months, dividend yield 0.09%, beta 0.91, 52-week range 73.03–100.77 USD. Latest reported quarter (Q3 2027): revenue of 3.8 bn USD (+4.1% YoY), net income of 270.0 m USD (+15.4% YoY), diluted EPS 1.56 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
14.7 bn USD
shares as of 16 Oct 2026
P/E (TTM)
15.6
Diluted EPS TTM 5.56 · TTM to 03 Oct 2026
E/P (TTM)
6.41%
TTM to 03 Oct 2026
Dividend yield
0.09%
DPS 12m 0.08
Beta (2y)
0.91
Volatility (1y) 29%
52-week range
73.03100.77

Price history

Loading chart…

Technical reading

RSI (14)
66.8
strong (55–70)
Bollinger (20, 2)
68.90 – 88.97
in the upper half of the band · %B 0.88 · band width 25.4%
SMA 50 / 200
78.88 / 88.22
mixed trend
MACD (12, 26, 9)
2.40 / 1.00
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+14.4%−2.0%+16.4 pp—
3 months−2.0%−2.2%+0.1 pp—
6 months−6.9%+4.3%−11.2 pp—
Year to date−0.6%+10.6%−11.2 pp—
1 year+8.6%+10.5%−1.8 pp−1.6%
3 years+11.8%+73.7%−61.9 pp+60.4%
5 years+11.9%+61.7%−49.8 pp—
Max drawdown (1y)
−27.5%
20 Feb 2026 → 07 Oct 2026
Max drawdown (5y)
−37.4%
08 Apr 2024 → 04 Apr 2025
Compound annual growth (5y)
+2.3%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2027 · 03 Oct 2026

Revenue
3.8 bn USD
+4.1% YoY
Net income
270.0 m USD
+15.4% YoY
Diluted EPS
1.56
+19.1% YoY
net / operating
7.2% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27Q2 '27Q3 '27
Revenue3.6 bn3.3 bn3.7 bn3.6 bn4.2 bn3.7 bn3.8 bn3.8 bn
Research & development116.0 m132.0 m137.0 m118.0 m134.0 m120.0 m116.0 m110.0 m
SG&A265.0 m298.0 m303.0 m257.0 m315.0 m321.0 m311.0 m271.0 m
Depreciation & amortisation103.0 m92.0 m100.0 m97.0 m112.0 m96.0 m94.0 m101.0 m
Pre-tax income131.0 m241.0 m301.0 m316.0 m279.0 m267.0 m304.0 m322.0 m
Income tax-10.0 m34.0 m56.0 m81.0 m43.0 m47.0 m56.0 m52.0 m
Net income141.0 m207.0 m245.0 m234.0 m235.0 m220.0 m248.0 m270.0 m
Diluted EPS0.76 ≈1.131.351.311.33 ≈1.251.421.56
Operating cash flow446.0 m-124.0 m387.0 m ≈349.0 m ≈700.0 m-117.0 m304.0 m ≈425.0 m ≈
Capex153.0 m56.0 m78.0 m76.0 m173.0 m133.0 m95.0 m ≈102.0 m ≈
Dividends paid4.0 m3.0 m4.0 m ≈4.0 m ≈7.0 m3.0 m4.0 m ≈3.0 m ≈
Share repurchases232.0 m215.0 m214.0 m ≈206.0 m ≈187.0 m168.0 m209.0 m ≈239.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 30 percentile of its own 30-quarter history (min 8.4, median 17.6, max 49.6; quarters with earnings only).

Fiscal years

Fiscal year20172018202020212022202320242026
Revenue14.2 bn14.0 bn13.6 bn11.7 bn12.9 bn13.7 bn13.7 bn14.8 bn
Revenue YoY+3.0%−1.6%unavailable−14.5%+10.5%+6.3%+0.1%unavailable
Net income307.0 m1.2 bn815.0 m309.0 m861.0 m921.0 m824.0 m921.0 m
Net income YoY−68.1%+298.0%unavailable−62.1%+178.6%+7.0%−10.5%unavailable
Diluted EPS1.144.83unavailableunavailable4.014.564.335.11
Diluted EPS YoY−67.7%+323.7%unavailableunavailableunavailable+13.7%−5.0%unavailable
net %2.2%8.7%6.0%2.7%6.7%6.7%6.0%6.2%
Free cash flow513.0 m738.0 m675.0 m451.0 m1.1 bn864.0 m650.0 m929.0 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 03 Jan 2026

Cash
2.0 bn USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
7.9 bn USD
Total assets
18.1 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
unavailable
ROA
5.1%
FCF margin
6.3%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
13.7 bn
2024
13.7 bn
2026
14.8 bn

SEC (XBRL)· 11 Feb 2026verified

Cost of revenue
2023
—
2024
—
2026
—

SEC (XBRL)· 19 Feb 2021verified

Gross profit
2023
—
2024
—
2026
—

SEC (XBRL)· 19 Feb 2021derived

Research & development
2023
570.0 m
2024
491.0 m
2026
521.0 m

SEC (XBRL)· 11 Feb 2026verified

SG&A
2023
1.2 bn
2024
1.2 bn
2026
1.2 bn

SEC (XBRL)· 11 Feb 2026verified

Depreciation & amortisation
2023
395.0 m
2024
382.0 m
2026
401.0 m

SEC (XBRL)· 11 Feb 2026verified

Interest expense
2023
—
2024
—
2026
—

SEC (XBRL)· 17 Feb 2022verified

Pre-tax income
2023
1.1 bn
2024
943.0 m
2026
1.1 bn

SEC (XBRL)· 11 Feb 2026verified

Income tax
2023
165.0 m
2024
118.0 m
2026
214.0 m

SEC (XBRL)· 11 Feb 2026verified

Net income
2023
921.0 m
2024
824.0 m
2026
921.0 m

SEC (XBRL)· 11 Feb 2026verified

Diluted EPS
2023
4.56
2024
4.33
2026
5.11

SEC (XBRL)· 11 Feb 2026verified

Weighted average diluted shares
2023
201.8 m
2024
190.3 m
2026
180.3 m

SEC (XBRL)· 11 Feb 2026verified

Dividend per share
2023
0.08
2024
0.08
2026
0.08

SEC (XBRL)· 11 Feb 2026verified

Balance sheet · USD

Cash
2023
2.2 bn
2024
1.4 bn
2026
2.0 bn

SEC (XBRL)· 11 Feb 2026verified

Inventories
2023
3.9 bn
2024
4.1 bn
2026
4.3 bn

SEC (XBRL)· 11 Feb 2026verified

Property, plant & equipment, net
2023
2.5 bn
2024
—
2026
—

SEC (XBRL)· 12 Feb 2024verified

Intangibles (excl. goodwill)
2023
399.0 m
2024
362.0 m
2026
338.0 m

SEC (XBRL)· 11 Feb 2026verified

Total assets
2023
16.9 bn
2024
16.8 bn
2026
18.1 bn

SEC (XBRL)· 11 Feb 2026verified

Total liabilities
2023
9.9 bn
2024
9.6 bn
2026
10.3 bn

SEC (XBRL)· 11 Feb 2026verified

Equity
2023
7.0 bn †
2024
7.2 bn †
2026
7.9 bn †

SEC (XBRL)· 11 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
1.3 bn
2024
1.0 bn
2026
1.3 bn

SEC (XBRL)· 11 Feb 2026verified

Capex
2023
402.0 m
2024
364.0 m
2026
383.0 m

SEC (XBRL)· 11 Feb 2026verified

Free cash flow
2023
864.0 m ≈
2024
650.0 m ≈
2026
929.0 m ≈

SEC (XBRL)· 11 Feb 2026derived

Investing cash flow
2023
-317.0 m
2024
-284.0 m
2026
-207.0 m

SEC (XBRL)· 11 Feb 2026verified

Financing cash flow
2023
-813.0 m
2024
-1.5 bn
2026
-543.0 m

SEC (XBRL)· 11 Feb 2026verified

Dividends paid
2023
16.0 m
2024
12.0 m
2026
18.0 m

SEC (XBRL)· 11 Feb 2026verified

Share repurchases
2023
1.2 bn
2024
1.1 bn
2026
822.0 m

SEC (XBRL)· 11 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
unavailable
input data missing
Revenue CAGR 3Y
2.6%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
4.9%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
unavailable
input data missing
Net income CAGR 3Y
0.0%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
24.4%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
unavailable
input data missing
EPS CAGR 3Y
3.9%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
6.3%
computed by olivLawTTM to 03 Oct 2026
FCF margin
5.2%
computed by olivLawTTM to 03 Oct 2026

Returns

ROE
12.5%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
ROA
5.4%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
1.4%
computed by olivLawTTM to 03 Oct 2026
Payout ratio (FCF)
2.1%
computed by olivLawTTM to 03 Oct 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
unavailable
input data missing
Quick ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
1.3 bn USD
computed by olivLawTTM to 03 Oct 2026
Capital expenditure
503.0 m USD
computed by olivLawTTM to 03 Oct 2026
Free cash flow
809.0 m USD
computed by olivLawTTM to 03 Oct 2026
FCF conversion
83.1%
computed by olivLawTTM to 03 Oct 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
14.7 bn USD
computed by olivLawbalance sheet at 03 Oct 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
15.1x
computed by olivLawTTM to 03 Oct 2026
P/E (TTM)
15.6x
computed by olivLawTTM to 03 Oct 2026
Earnings yield
6.4%
computed by olivLawTTM to 03 Oct 2026
P/B
1.8x
computed by olivLawbalance sheet at 03 Oct 2026
P/S
1.0x
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
18.1x
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
FCF yield
5.5%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
Dividend yield
0.1%
computed by olivLawTTM to 03 Oct 2026
Shareholder yield (distributions)
5.6%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026

Risk

Altman Z
unavailable
input data missing

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 58.3% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

86.65 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 14.7 bn USD

Key indicators

Market capitalisation
14.7 bn USD
computed by olivLawbalance sheet at 03 Oct 2026
P/E (TTM)
15.6x
computed by olivLawTTM to 03 Oct 2026
P/B
1.8x
computed by olivLawbalance sheet at 03 Oct 2026
EV/EBITDA
unavailable
input data missing
ROE
12.5%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
Net margin
6.3%
computed by olivLawTTM to 03 Oct 2026
Revenue growth (YoY)
unavailable
input data missing
Dividend yield
0.1%
computed by olivLawTTM to 03 Oct 2026

Coverage and freshness

27/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 03 Oct 2026
Latest balance sheet date: 03 Oct 2026
Share count (cover of the latest filing), as of: 16 Oct 2026
Source: SEC (XBRL)published 29 Oct 2026
verified 2290derived 151

Score by group

58% · Insufficient data

Estimated value range

Low
96.28
USD per share
Mid
151.17
USD per share
High
180.06
USD per share
Price: 86.65 USD
The price is below the range
Potential to the central value: 74.5% (value / price − 1)
Margin of safety: 42.7% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 96.28 – 180.06 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E96.28 – 180.06 (Mid 151.17)
    14 companies used · median multiple 27.2x · quartiles 17.3x – 32.4x
    AIR, ATRO, BA, CVU, HEI, HON, LOAR, PKE, PRZO, RTX, SARO, SIF, TATT, TDG
  • Dividend discount (DDM)outside the aggregate1.05 – 1.41 (Mid 1.21)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Transportation equipment (SIC 372x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 58.3% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality6.3%61 (vs peers)11%
FCF conversion · Quality83.1%76 (on a fixed band)11%
Revenue CAGR 3Y · Growth2.6%22 (on a fixed band)14%
EPS CAGR 3Y · Growth3.9%26 (on a fixed band)14%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheetunavailableunavailable—
P/E (TTM) · Valuation15.6x82 (vs peers)18%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation5.5%69 (on a fixed band)14%
Shareholder yield (distributions) · Returns5.6%80 (on a fixed band)11%
Payout ratio (FCF) · Returns2.1%100 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/3 factors with a value
  • Growth24/100 · 2/2 factors with a value
  • Quality68/100 · 2/3 factors with a value
  • Returns88/100 · 2/2 factors with a value
  • Valuation76/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Textron Inc. (TXT). Latest full fiscal year: 2026; data up to 2026-10-03.

Figures computed from the financial statements: revenue 14.8 bn USD in 2026; net margin 6.3%; ROE 12.5%.

The estimated value range is 96.28–180.06 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 151.17 USD, the price of 86.65 USD leaves a potential of 74.5% (value / price − 1) and a margin of safety of 42.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 83.1%
  • P/E (TTM): 15.6x
  • Shareholder yield (distributions): 5.6%
  • Payout ratio (FCF): 2.1%
  • The price is below the estimated value range

What contradicts it

  • Revenue CAGR 3Y: 2.6%
  • EPS CAGR 3Y: 3.9%

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA.

Versus the vertical median

Transportation equipment (SIC 372x) · same industry group (3-digit SIC) · compared with 29 companies

Multiples and returns vs the median

P/E
15.6x
vertical median 29.6x
below median (−47.3%)
EV/EBITDA
—
vertical median 15.9x
P/S
1.0x
vertical median 2.9x
below median (−66.8%)
P/B
1.8x
vertical median 3.0x
below median (−39.1%)
ROE
12.5%
vertical median 7.7%
above median (+62.5%)
Net margin
6.3%
vertical median 4.9%
above median (+29.8%)
EBIT margin
—
vertical median 8.1%
Revenue YoY
—
vertical median 16.0%
Net debt/EBITDA
—
vertical median 0.7x
Dividend yield
0.1%
vertical median 1.1%
below median (−91.9%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
RTXRtx Corporation275.0 bn33.112.6%8.8%+9.7%+17% / +150%
BAThe Boeing Company137.3 bn18.2—8.1%+34.5%−8% / −25%
HONHoneywell International Inc71.1 bn10.736.0%21.0%+7.8%+11% / +16%
TDGTransDigm Group Incorporated66.8 bn33.8—21.3%+11.2%−11% / +25%
EMBJEmbraer S.A.56.8 bn163.610.8%4.6%+18.5%+25% / +349%
ESLTElbit Systems Ltd32.7 bn61.814.4%6.7%+16.3%+50% / +248%
TXTTextron Inc.14.7 bn15.612.5%6.3%unavailable+9% / +12%
HEIHeico Corporation9.1 bn56.118.7%16.4%+16.3%+7% / +97%
SAROStandardAero, Inc.8.5 bn26.612.3%5.1%+15.8%−2% / unavailable
LOARLoar Holdings Inc.6.5 bn0.55.8%11.6%+23.2%+2% / unavailable
AVAVAerovironment, Inc.5.8 bn—-4.6%-10.1%+140.9%−59% / −18%
JOBYJoby Aviation, Inc.5.0 bn—-65.9%-755.1%+39,183.1%−65% / −15%
KRMNKarman Holdings Inc.4.5 bn118.59.5%6.3%+36.6%−49% / unavailable
AIRAar Corp4.4 bn22.212.9%5.5%+19.0%+31% / +57%
ACHRArcher Aviation Inc.3.2 bn—-44.8%-11,589.9%unavailable−47% / −31%
DCODucommun Incorporated2.4 bn—-3.0%-2.4%+4.9%+70% / +210%
ATROAstronics Corporation1.9 bn30.433.7%8.4%+8.4%+32% / +385%
BETABETA Technologies, Inc.951.1 m—-46.8%-1,007.8%+136.0%−7% / unavailable
PKEPark Aerospace Corp.544.8 m34.411.1%18.4%+18.2%+28% / +64%
TATTTat Technologies Ltd494.3 m27.811.7%9.4%+17.0%−1% / +293%
AIROAIRO Group Holdings, Inc.171.0 m—-3.6%-23.9%+4.6%−37% / unavailable
SIFSIFCO Industries, Inc.118.5 m29.610.3%4.0%+6.5%+201% / +452%
CVUCpi Aerostructures, Inc.64.0 m17.014.4%5.1%−14.6%+72% / +104%
MOBMobilicom Limited36.5 m—-369.2%-705.4%+5.8%−58% / +115%
UAVSAgEagle Aerial Systems Inc.21.8 m—-106.1%-276.5%−4.3%−74% / −100%

1- and 3-year price returns: for TXT from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
51.97
Total return -40% · Per year -40%
91.97
Total return 6% · Per year 6%
138.64
Total return 60% · Per year 60%
3 years
48.58
Total return -44% · Per year -17%
96.90
Total return 12% · Per year 4%
160.66
Total return 86% · Per year 23%
5 years
45.41
Total return -47% · Per year -12%
102.10
Total return 18% · Per year 3%
186.17
Total return 116% · Per year 17%
What moves the 3-year price the most
  • Exit P/E± 24.23
  • Net margin± 16.96
  • Annual revenue growth± 14.17
  • Annual dilution± 1.42

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 28 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).

In brief

Textron Inc. is a multi-industry American group operating in aviation (Textron Aviation), helicopters and tiltrotors (Bell), defense (Textron Systems), industrial components and specialized vehicles, plus a captive finance unit. Revenues were 14.8 billion USD in 2025 1, and in July 2026 the company reported that it had started a sale process for the Industrial segment 3, which makes its current strategic direction worth understanding.

SWOT

Strengths

  • The company has a broad product base across aviation, helicopters and defense, with recognized brands and a global service network 1.
  • High backlog and solid orders provide visibility on future revenues 23.
  • The captive finance division supports aircraft and helicopter sales by helping customers finance purchases 1.

Weaknesses

  • Dependence on U.S. Government contracts exposes the company to budget cuts and funding delays 1.
  • High exposure to the North American market limits geographic diversification of revenues 2.

Opportunities

  • New Citation Gen3 jets and the Denali turboprop, scheduled for service entry, could renew the product range 1.
  • The sale process for the Industrial segment could focus resources on aviation and defense 3.

Threats

  • Reductions or delays in defense funding could directly affect Bell and Textron Systems programs 1.
  • Trade policy and tariffs could raise supply chain costs, although part of the tariffs has been refunded 2.
  • Competition in military bids and possible bid protests could delay or cost contracts 1.

Risks

  • Dependence on the U.S. Governmentmedium

    Contracts can be terminated for convenience or for non-performance, with effects on backlog and revenues 1.

  • Cyclical aircraft demandmedium

    Demand for business jets and turboprops is cyclical, and orders can be deferred or cancelled in difficult economic conditions 1.

  • Tariffs and supply chainslow

    Tariffs and supplier problems could raise costs and disrupt production, even though the impact so far has not been material 23.

Investment thesis

What would need to be true (bull case)

  • Revenue growth in the first half of 2026 and a record-level backlog could support a positive trajectory if program execution stays steady 23.
  • Selling the Industrial segment could simplify the portfolio and focus the company on aviation and defense 3.

What would break the thesis

  • Gross margin declined in 2026 due to costs and the Bell segment, which could continue if pressure persists 2.
  • Cyclical demand for business jets could reduce orders in the event of an economic slowdown 1.

What to watch

  • Completion of the sale process for the Industrial segment2026
  • Evolution of Bell segment margin and inflation-driven costsQ3 2026
  • First results under the new segment structure in quarterly reportingQ1 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 28 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).

The business

Textron describes its activity as a multi-industry business that uses a global network of aircraft, defense, industrial and finance businesses to provide customers with innovative products and services 1. In 2025 the company operated through six operating segments, but the Textron eAviation segment was eliminated as a separate segment from January 4, 2026, with its activities redistributed among Textron Aviation, Textron Systems and corporate expenses 12. Consolidated revenues were 14.8 billion USD in 2025 1, and about 27% came from contracts with the U.S. Government 1.

Segments

Textron Aviation

Textron Aviation manufactures Cessna Citation business jets and Beechcraft and Cessna turboprop aircraft, with an important aftermarket parts and services business. Segment revenues rose 13% in 2025 1, and in the second quarter of 2026 order activity stayed healthy, with the first five Ascend aircraft delivered to NetJets 3.

Textron Systems

Textron Systems develops electronic systems, armored vehicles, Lycoming engines and unmanned systems for military, government and commercial customers 1. The segment reported higher revenues in the second quarter of 2026, notably on armored land vehicles and military training services provided through ATAC 3.

Market context

Textron's markets are general aviation, helicopters, U.S. defense and automotive plastic fuel systems and specialized vehicles. Demand for business jets is cyclical and hard to forecast, and orders convert into revenue depending on production capacity and credit availability 1. The company is principally a North American manufacturer, with 69% of 2025 revenues generated in the U.S. 2, and total backlog stood at 18.9 billion USD on July 4, 2026 2.

Trends

  • Commercial tariffsmixed

    U.S. tariffs disrupted supply chains, and in February 2026 the Supreme Court ruled that IEEPA tariffs were not authorized, with the company beginning to receive refunds 2. The net effect depends on the evolution of trade policy.

  • Business jet demandtailwind

    Solid orders in general aviation and turboprop deliveries supported revenues, while the exit from the Powersports business and inflationary pressures changed profitability 13. Demand remains sensitive to economic conditions.

  • Cost inflationheadwind

    Inflation raised cost of sales in 2025 and in the first half of 2026, reducing gross margin in the manufacturing segments 12. If the pressure persists, margins could stay under strain.

Competitive position

The defense market is highly competitive, with rigorous bidding and pricing pressure, and indefinite-delivery or multi-award contracts can require several bids 1. In business aviation and helicopters, competition comes from companies with comparable product lines, and Textron can lose contracts to rivals 1.

  • Lockheed MartinLMT

    Competitor in defense programs and military systems, part of the competitive environment for government bids.

  • General DynamicsGD

    Competitor in armored vehicles and defense systems, relevant to Textron Systems.

  • HoneywellHON

    Supplier and competitor in aerospace systems and avionics components.

  • Piston engine manufacturers for general aviation

    Competition in piston engines for general aviation is part of the competitive environment, with no ticker given in the sources.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-01-03 · SEC / Textron Inc. · 11 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-07-04 · SEC / Textron Inc. · 28 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Textron Inc. · 28 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.