Textron Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Textron Inc. TXT reported fourth-quarter 2025 adjusted earnings of $1.73 per share, which missed the Zacks Consensus Estimate of $1.74 by 0.8%. However, the bottom line rose 29.1% from $1.34 in the year-ago quarter. 

The company reported GAAP earnings of $1.33 per share compared with 76 cents a year ago.

For 2025, the company reported adjusted earnings of $6.10 per share compared with $5.48 a year ago.

TXT’s Revenues

The company reported total revenues of $4.18 billion, which beat the Zacks Consensus Estimate of $4.14 billion by 0.8%. The top line also increased 15.7% from the year-ago quarter’s level of $3.61 billion.

For 2025, the company reported revenues of $14.8 billion compared with $13.7 billion last year.

Segmental Performance of Textron

Textron Aviation: Revenues from this segment increased 36% year over year to $1.7 billion. This was primarily due to higher volume and mix largely reflecting higher Citation jet and commercial turboprop volume as TXT recovered from the strike in late 2024.

The segment delivered 49 jets, up from 32 in the year-ago quarter. It also delivered 43 commercial turboprops, up from 38 in the third quarter of 2024.

Order backlog at the end of the quarter totaled $7.7 billion.

Bell: Revenues from this segment amounted to $1.3 billion, up 11% from the year-ago quarter’s registered number. This was due to higher volume on the U.S. Army's MV-75 program, partially offset by lower commercial revenues of $11 million, reflecting the mix of aircraft sold in the period, partially offset by higher pricing.

Bell delivered 78 commercial helicopters, flat year over year.

Its order backlog at the end of the quarter totaled $7.8 billion.

Textron Systems: This segment’s revenues amounted to $323 million, up $12 million from the prior-year level.

Textron Systems’ backlog at the end of the quarter totaled $3.3 billion.

Industrial: Revenues from this segment declined $48 million to $821 million due to the impact of the divestiture of the Powersports business.

Textron eAviation: Revenues from the segment totaled $7 million, lower than the prior-year period’s level of $11 million. 

Finance: This segment’s revenues amounted to $18 million compared with $11 million in the year-ago quarter.

Textron’s Financials

As of Jan. 3, 2026, cash and cash equivalents totaled $1.94 billion compared with $1.39 billion as of Dec. 28, 2024.

Cash generated from operating activities in 2025 amounted to $1.33 billion compared with $1.01 billion last year.

Capital expenditures amounted to $383 million (as of Jan. 3, 2026) compared with $364 million last year.

The long-term debt totaled $3.53 billion as of Jan. 3, 2026, compared with $2.89 billion as of Dec. 28, 2024.

TXT’s Guidance

Textron expects 2026 revenues of approximately $15.5 billion. 

The company expects 2026 adjusted earnings to be in the range of $6.40-$6.60 per share. The Zacks Consensus Estimate for earnings is pegged at $6.67 per share, which lies above the company’s guided range.

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.

Recent Defense Release 

RTX Corporation’s RTX fourth-quarter 2025 adjusted earnings per share (EPS) of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.

RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.

The Boeing Company BA incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.

BA’s revenues amounted to $23.95 billion, which outpaced the Zacks Consensus Estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.

Northrop Grumman Corporation NOC reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.

NOC’s total sales of $11.71 billion in the fourth quarter beat the Zacks Consensus Estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.
 

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