Textron to Supply Beechcraft T-6 Texan II Training System to Japan

Textron Inc. TXT recently revealed that it has secured its first contract to supply the Beechcraft T-6JP Texan II integrated training system to the Japan Air Self-Defense Force in partnership with Kanematsu Corporation. The initial agreement covers two T-6JP Texan II aircraft, along with instructor pilot and aircraft maintenance training materials. 

Deliveries of the first two aircraft are expected in 2029, with follow-on contracts likely to be awarded.

Overview of TXT’s Beechcraft T-6C Texan II

The Beechcraft T-6 Texan II is recognized as the world’s leading military flight training platform. With continuous and solid aircraft manufacturing expertise and a legacy of delivering more than 255,000 aircraft globally, the Texan II offers low acquisition, operating and sustainment costs, enabling air forces to accelerate pilot training efficiently. With an installed base more than four times larger than its nearest competitor, the T-6 Texan II family has remained the top integrated training system worldwide for more than two decades.

With more than 1,000 aircraft currently in service and more than 5 million flight hours accumulated, the T-6 Texan II is the most widely deployed integrated training system globally. Its reach now extends to Japan and includes pilot training programs across 15 nations.

TXT’s Growth Potential

The military training aircraft market is poised for strong growth, supported by rising global geopolitical tensions, technological advancements, higher spending on combat aircraft and the need for cost-efficient pilot training solutions. Per a report by the Mordor Intelligence firm, the military training aircraft market is projected to witness a CAGR of 10.63% between 2025 and 2030. These favorable industry dynamics are likely to create meaningful growth opportunities for Textron in the years ahead.

Textron’s business unit, TRU Simulation, specializes in delivering high-quality training solutions for the business aviation, helicopter and military markets. The unit designs, manufactures and supports advanced, high-fidelity flight training systems, ranging from classroom-based tools to flight training devices and full-motion simulators for defense aircraft.

These strong capabilities are likely to have helped Textron secure a steady flow of orders in the military aircraft simulation and training space, reinforcing its position in this growing segment.

Opportunities for Other Aerospace Stocks

Aerospace companies that are likely to reap the benefits of the rising military training aircraft market are as follows:  

Lockheed Martin Corp. LMT: The company’s F-35 Full Mission Simulators are advanced, high-fidelity systems that accurately replicate the aircraft’s sophisticated avionics, stealth features and combat systems. It delivers Mission Rehearsal Training solutions and provides pilots with advanced instruction in fifth-generation tactics, techniques and procedures.

LMT’s long-term (three to five years) earnings growth rate is 11.94%. The Zacks Consensus Estimate for 2025 sales is pegged at $74.40 billion, which indicates a rise of 4.7%.

BAE Systems plc BAESY: Its Hawk advanced jet trainer, featuring advanced airborne simulation technology and a next-generation cockpit, enables a smoother and more cost-efficient transition to frontline aircraft. This capability helps ensure student pilots and Weapons Systems Officers are trained to the required proficiency levels and are fully prepared for frontline operational roles.

BAESY has a long-term earnings growth rate of 14.57%. The Zacks Consensus Estimate for 2025 sales is pegged at $40.47 billion, which suggests an increase of 62%.

RTX Corporation RTX: Its Joint Secure Air Combat Training System delivers the first certified four-level Multiple Independent Levels of Security test and training solution across both airborne and ground platforms, enabling secure operations in both tethered and autonomous environments.

RTX has a long-term earnings growth rate of 10.21%. The Zacks Consensus Estimate for 2025 sales is pegged at $87.11 billion, which calls for a rise of 7.9%.

TXT Stock Price Movement

In the past six months, shares of Textron have risen 15.4% compared with the industry’s growth of 10.4%.

TXT’s Zacks Rank

Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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