Textron (TXT) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue grew 16% year-over-year to $4.2 billion, with full-year revenue up 8% to $14.8 billion and segment profit up 14% to $1.4 billion.

• Adjusted EPS for 2025 was $6.10, up 11.3% year-over-year, with Q4 adjusted EPS at $1.73.

• Strong performance in Aviation and Bell, with record backlog and robust order flow across the portfolio.

• Industrial segment streamlined via divestiture of Powersports business.

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

Financial highlights

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

• Aviation Q4 revenue up 36% to $1.7 billion; full-year up 13% to $6 billion.

• Bell Q4 revenue up 11% to $1.3 billion; full-year up 20% to $4.3 billion.

• Systems Q4 revenue up 4% to $323 million; full-year up slightly to $1.2 billion.

• $822 million returned to shareholders via share repurchases in 2025.

Outlook and guidance

• 2026 revenue projected at approximately $15.5 billion, with adjusted EPS guidance of $6.40–$6.60.

• Manufacturing cash flow before pension contributions expected at $700–$800 million, with CapEx at $650 million for 2026.

• Aviation revenue expected to grow 9% to $6.5 billion with 11–12% margin; Bell revenue to grow to $4.4 billion, margin 8–9%.

• R&D spending to be ~$480 million (3.1% of manufacturing revenue).

• Adjusted EBITDA forecasted at ~$1.97 billion for 2026.