Textron(TXT) - 2026 Q4 - Annual Report

Backlog and Demand - Textron Aviation's backlog at the end of 2025 was $7,724 million, a slight decrease from $7,845 million in 2024[36] - Bell's backlog increased to $7,795 million in 2025 from $7,469 million in 2024, indicating strong demand for military and commercial helicopters[36] - Textron Systems' backlog rose significantly to $3,304 million in 2025, up from $2,594 million in 2024, reflecting growth in defense and security contracts[36] Revenue Sources - Approximately 27% of Textron's consolidated revenues in 2025 were generated from U.S. Government contracts, primarily in the Bell and Textron Systems segments[38] Product Development and Innovation - The Beechcraft Denali turboprop aircraft is expected to enter service in 2026, featuring an engine certified to be up to 20% more efficient than similar engines[16] - Textron Aviation plans to launch the next generation of light jets, including the Citation M2 Gen3, CJ3 Gen3, and CJ4 Gen3, expected to enter service in 2027[15] - The Pipistrel Velis Electro, the world's first electric aircraft to receive full type certification, received a light-sport aircraft airworthiness exemption from the FAA in 2024[33] Financial Performance - Textron's Finance segment made payments of $183 million in 2025 and $109 million in 2024 to finance the sale of Textron-manufactured products[35] - The notional amount of outstanding foreign currency exchange contracts was $477 million as of January 3, 2026, compared to $464 million on December 28, 2024[186] - The company had interest rate swap agreements with a total notional amount of $264 million at January 3, 2026, down from $289 million at December 28, 2024[186] - The fair value of foreign currency exchange contracts showed a sensitivity of $34 million to a 10% change as of January 3, 2026[189] - The fair value of debt was $(3,459) million as of January 3, 2026, with a sensitivity of $(66) million to a 10% change[189] Workforce and Talent Management - Textron employed approximately 34,000 employees worldwide as of January 3, 2026, with 29% of U.S. employees represented by unions[43] - The company assesses current and future talent needs annually through a formal talent review process to develop leadership succession plans[48] - The company offers comprehensive compensation and benefit programs to attract and retain highly skilled employees[45] - The company aims to improve performance, innovation, collaboration, and talent retention through a highly skilled workforce[49] - The company provides various training programs through Textron University to enhance employee skills and career development[47] Safety and Compliance - The injury rate reduction goal is a performance metric tracked and reported to senior leadership and the Audit Committee of the Board of Directors[46] Intellectual Property - The company does not believe that any existing patent or intellectual property right is of such importance that its loss would materially affect the business[50]