Textron Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Core Insights - Textron Inc. (TXT) reported fourth-quarter 2025 adjusted earnings of $1.73 per share, slightly missing the Zacks Consensus Estimate of $1.74 by 0.8%, but showing a significant increase of 29.1% from $1.34 in the same quarter last year [1] - The company achieved total revenues of $4.18 billion, exceeding the Zacks Consensus Estimate of $4.14 billion by 0.8%, and reflecting a 15.7% increase from $3.61 billion in the prior year [2] - For the full year 2025, adjusted earnings were reported at $6.10 per share, up from $5.48 in 2024, while total revenues reached $14.8 billion compared to $13.7 billion in the previous year [1][2] Segment Performance - Textron Aviation segment revenues surged 36% year over year to $1.7 billion, driven by higher deliveries of Citation jets and commercial turboprops, with a total of 49 jets and 43 turboprops delivered [3] - The Bell segment reported revenues of $1.3 billion, an 11% increase from the previous year, attributed to higher volume on the U.S. Army's MV-75 program, despite a slight decline in commercial revenues [4] - Textron Systems generated revenues of $323 million, up $12 million from the prior year, while the Industrial segment saw a decline of $48 million to $821 million due to the divestiture of the Powersports business [5] Financial Overview - As of January 3, 2026, Textron's cash and cash equivalents stood at $1.94 billion, an increase from $1.39 billion a year earlier, with cash generated from operating activities amounting to $1.33 billion compared to $1.01 billion in 2024 [8] - Capital expenditures for the year totaled $383 million, up from $364 million in the previous year, while long-term debt increased to $3.53 billion from $2.89 billion [8] Guidance - Textron anticipates revenues of approximately $15.5 billion for 2026, with adjusted earnings expected to be in the range of $6.40 to $6.60 per share, compared to the Zacks Consensus Estimate of $6.67 per share [9]