Textron Q4 revenue rises 16%, beats expectations

Overview

• Multi-industry firm's Q4 revenue rose 16% yr/yr, beating analyst expectations

• Adjusted EPS for Q4 increased to $1.73 from $1.34 in 2024

• Continued investment in MV-75 program supports Army Transformation Initiative

Outlook

• Textron forecasts 2026 revenue of approximately $15.5 bln

• Company expects 2026 adjusted EPS between $6.40 and $6.60

• Textron estimates 2026 manufacturing cash flow before pension contributions at $700 mln to $800 mln

Result Drivers

• AVIATION RECOVERY - Textron Aviation's revenue rose 36%, driven by increased aircraft volumes and recovery from a previous strike

• BELL MILITARY GROWTH - Bell's military revenues increased by 20%, primarily due to higher volume on the MV-75 program

• INDUSTRIAL DIVESTITURE - Industrial revenues fell due to the divestiture of the Powersports business

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Textron Inc is $95.44, about 1.3% above its January 27 closing price of $94.23

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw4F5B6da

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