Textron (NYSE:TXT) closed out 2025 with fourth-quarter revenue up 16% to $4.2 billion and segment profit up 34% to $380 million, driving adjusted earnings from continuing operations of $1.73 per share, executives said on the company’s fourth-quarter 2025 earnings call. For the full year, Textron reported revenue of $14.8 billion, up 8%, and segment profit of $1.4 billion, up 14%, with adjusted EPS of $6.10.
Manufacturing cash flow before pension contributions totaled $510 million in the quarter and $969 million for the year, up $204 million and $277 million, respectively, from the prior-year periods. The company also repurchased about 2.3 million shares for $187 million in the quarter and 10.7 million shares for $822 million during 2025.
Leadership transition and 2026 guidance
For 2026, Atherton said Textron is projecting revenue of about $15.5 billion, up about 4.5% from 2025, and adjusted EPS of $6.40 to $6.60. Manufacturing cash flow before pension contributions is expected to be $700 million to $800 million, reflecting about $350 million of higher capital expenditures and long-lead materials to support low-rate initial production (LRIP) preparation for Bell’s MV-75 program.
CFO David Rosenberg added that Textron is eliminating Textron eAviation as a separate reporting segment, with eAviation activities realigned across Textron Aviation, Textron Systems, and Corporate. The company recast 2025 results in its posted earnings presentation to provide comparability with 2026 guidance, he said.
Textron Aviation: deliveries, backlog, and margin cadence
Textron Aviation posted fourth-quarter revenue of $1.7 billion, up 36% year over year, with segment profit of $208 million, up $108 million. Rosenberg attributed the increase primarily to higher volume and mix, including higher Citation jet and commercial turboprop volume as the segment recovered from a late-2024 strike, along with higher aftermarket parts and service revenue.
For the full year, Aviation revenue rose 13% to $6.0 billion and segment profit increased 23% to $694 million. Backlog ended the year at $7.7 billion. Donnelly said Aviation delivered 171 jets in 2025, up from 151 the prior year, and 146 commercial turboprops, up from 127. He also said the Citation Ascend, CJ3 Gen2, and M2 Gen2 with autothrottles received FAA certification and began deliveries during the quarter.
Atherton said the Beechcraft Denali program logged more than 3,200 hours of flight testing in 2025. She also noted Textron Aviation entered a contract to deliver the first two Beechcraft T-6 aircraft to Japan’s Air Self-Defense Force, with deliveries scheduled for 2029 and additional contracts anticipated.
For 2026, Rosenberg guided to Aviation revenue of about $6.5 billion, roughly 9% growth, with segment margin expected to be 11% to 12%. In Q&A, Rosenberg said the guidance implies higher deliveries and a similar aftermarket growth profile of around 6%.
On margin cadence, Rosenberg said he expects seasonality similar to 2025, with margin “about 100-150 basis points below the midpoint of the guide to start the year,” rising to “100-150 basis points above the midpoint” by year-end. Atherton also cited engines as a continuing supply chain “laggard” and described workforce challenges, including high attrition among early-tenure employees, prompting an in-house training program to “upskill” workers.
Bell: MV-75 acceleration, investment pull-forward, and potential LRIP adjustment
Bell posted fourth-quarter revenue of $1.3 billion, up 11%, driven by higher military revenue tied primarily to the MV-75 program, partially offset by lower commercial revenue due to mix. Segment profit was $101 million, down $9 million from the prior year’s quarter. For the full year, Bell revenue rose 20% to $4.3 billion, while segment profit declined $7 million to $363 million. Bell backlog ended the year at $7.8 billion, up more than $300 million.
Donnelly and Atherton detailed progress on MV-75 acceleration, including completing more than 90% of engineering drawings, contracting nearly 2,000 Tier One and Tier Two suppliers, issuing 45,000 purchase orders, opening new manufacturing capacity in Wichita and Fort Worth, and beginning to manufacture components for the first six aircraft.
Atherton said Bell is poised to begin testing the first unit later in 2026, deliver engineering and manufacturing development (EMD) articles through 2027, and transition into LRIP deliveries in 2028. She said the Army’s acceleration effectively pulls the program forward by about 2.5 to 3 years, filling what had been an expected gap between EMD deliveries and production.
For 2026, Rosenberg guided to Bell revenue of about $4.4 billion and margin of 8% to 9%. He also said Textron expects the MV-75 LRIP phase contract option could be awarded in late 2026 or early 2027, and that upon award the company expects to record an unfavorable cumulative catch-up program adjustment of $60 million to $110 million, reflecting higher costs than originally anticipated when the program was bid in 2021. Rosenberg said the potential adjustment is not included in 2026 guidance due to uncertainty around timing, and he emphasized the MV-75 program is expected to remain profitable after the adjustment.
Rosenberg said elevated MV-75-related CapEx is expected in both 2026 and 2027, reflecting investment being moved roughly two years earlier than previously planned. In another exchange, executives said the opportunity is “between 40 and 60 units per year” and that the ramp is expected to support a higher revenue profile sooner than originally expected. They also said Bell historically was a double-digit margin business and that the company expects a return toward those levels as the program matures.
Systems, Industrial, and other financial items
Textron Systems reported fourth-quarter revenue of $323 million, up 4%, and segment profit of $43 million, up $1 million. For the full year, Systems revenue was $1.2 billion, up slightly, and segment profit was $175 million, up 14%. Backlog ended 2025 at $3.3 billion, up more than $700 million, which Rosenberg said reflected awards across ATAC, Marine Systems, and Land Systems.
Management highlighted the Ship-to-Shore Connector program, noting the business is about 15 units into a 73-unit program of record and received more than $450 million of awards during the year. Donnelly also noted Systems received an IDIQ contract valued up to $200 million for ATAC to provide airborne standoff jamming services to the U.S. Navy and U.S. Marine Corps.
Industrial revenue was $821 million in the quarter, down $48 million, reflecting a $72 million impact from the divestiture of the powersports business within Textron Specialized Vehicles. Rosenberg said Kautex revenue increased 5% in the quarter, largely due to favorable foreign exchange. Industrial segment profit was $30 million, down $18 million, which he attributed largely to higher selling and administrative costs and lower volume and mix. For the full year, Industrial revenue was $3.2 billion, down 9% (down 4% organically), with segment profit of $145 million.
Other items discussed included corporate expenses of $44 million in the quarter, manufacturing net interest expense of $31 million, a LIFO inventory provision of $84 million, and non-service pension and post-retirement income of $66 million. Rosenberg also laid out 2026 company-wide assumptions, including corporate expenses of about $180 million, net interest expense of about $140 million, a LIFO provision of $200 million, and an adjusted effective tax rate of about 20.5%.
About Textron (NYSE:TXT)
Textron Inc is a global, multi-industry manufacturing company headquartered in Providence, Rhode Island. The company designs, manufactures and services a diverse range of products for the aerospace, defense and industrial markets. Textron operates through four primary business segments—Textron Aviation, Bell, Textron Systems and Industrial—each of which serves customers around the world.
Textron Aviation is known for its Cessna and Beechcraft branded business jets and turboprop aircraft, offering models that range from light jets and turboprops to larger cabin aircraft designed for corporate and charter use.
