Textron (TXT) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $14.8 billion in 2025, up 8% year-over-year, with segment profit up 14% to $1.4 billion and adjusted EPS of $6.10.

• Fourth quarter 2025 revenue reached $4.2 billion, up 16% year-over-year, with segment profit up 34%.

• Strong performance in Aviation and Bell segments, with robust order flow and combined backlog near $8 billion.

• Leadership transition as Scott Donnelly retires and Lisa Atherton assumes CEO role.

• Manufacturing cash flow before pension contributions was $969 million for 2025, up 40%.

Financial highlights

• Full-year revenue up 8% to $14.8 billion; segment profit up 14% to $1.4 billion; adjusted EPS reached $6.10, up from $5.48 in 2024.

• Q4 2025 revenue: $4.2 billion, up 16% year-over-year; segment profit: $380 million, up 34%.

• Manufacturing cash flow before pension: $969 million for 2025, up $277 million year-over-year.

• Repurchased 10.7 million shares in 2025, returning $822 million to shareholders.

• Cash and equivalents increased to $1.94 billion at year-end 2025 from $823 million at year-end 2024.

Outlook and guidance

• 2026 revenue projected at $15.5 billion, up 4.5% from 2025; adjusted EPS guidance for 2026: $6.40–$6.60.

• Manufacturing cash flow before pension expected at $700–$800 million, reflecting higher CapEx for MV-75 program.

• Aviation revenue expected to grow 9% to $6.5 billion; Bell revenue to grow low single digits to $4.4 billion.

• Segment margin guidance: Aviation 11–12%, Bell 8–9%, Systems 12–13%, Industrial 4.5–5.5%.

• R&D spending to be ~$480 million; CapEx to increase to ~$650 million.