Textron (TXT) investor relations material

Executive summary

• Q3 2025 revenues increased 5% year-over-year to $3.6 billion, with segment profit rising to $357 million and adjusted EPS at $1.55, up from $1.40; GAAP EPS was $1.31, up from $1.18.

• Net income for Q3 2025 was $234 million, up from $223 million in Q3 2024.

• Manufacturing cash flow before pension contributions was $281 million, up from $147 million year-over-year.

• Leadership transition announced: Lisa Atherton to become President and CEO in January, with Scott Donnelly moving to Executive Chair.

• Backlog expanded by $2.2 billion, led by Bell and Textron Systems.

Financial highlights

• Textron Aviation revenues rose 10% to $1.5 billion, with segment profit up 40% to $179 million; backlog at $7.7 billion.

• Bell revenues increased 10% to $1 billion, driven by military programs; backlog at $8.2 billion, up $1.3 billion sequentially.

• Textron Systems revenues grew 2% to $307 million, with segment profit up $13 million to $52 million, aided by a gain from early contract termination; backlog at $3.2 billion.

• Industrial revenues declined to $761 million, reflecting the divestiture of the Powersports business.

• Finance segment revenues and profit increased due to gains on non-captive asset dispositions.

Outlook and guidance

• Full-year adjusted EPS guidance reiterated at $6.00–$6.20; GAAP EPS expected at $5.19–$5.39.

• Full-year manufacturing cash flow before pension contributions expected at $900 million to $1 billion.

• Backlog reached $19.1 billion at quarter-end, with 61% expected to be recognized as revenue through 2026.

• Aviation demand and backlog remain strong, with incremental volume expected in 2026 as production ramps.

• Management highlighted ongoing risks from the U.S. government shutdown and potential impacts on program funding and cash collections.