Textron (NYSE:TXT) Q4 2025 Earnings call January 28, 2026 08:00 AM ET Company ParticipantsDavid Rosenberg - CFOGavin Parsons - Director of Equity ResearchJohn Godyn - Managing DirectorKristine Liwag - Managing DirectorLisa Atherton - CEOMyles Walton - Managing DirectorNoah Poponak - Managing Director of Equity ResearchPeter Arment - Managing DirectorRobert Stallard - PartnerScott Donnelly - Executive ChairmanScott Hegstrom - VP of Investor Relations and TreasurerSeth Seifman - Exevutive DirectorSheila Kahya ...

Textron (NYSE:TXT) Q4 2025 Earnings call January 28, 2026 08:00 AM ET Speaker7Thank you for standing by, and welcome to the Textron fourth quarter 2025 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank yo ...

Transformation & Technology Adoption - The Army is undergoing a paradigm shift, changing technology, organization, and operational methods [2] - The Army aims to accelerate the integration of technology into formations by ceasing procurement of less effective equipment [5] - The Army is moving towards modular, software-defined technologies, including robotics, to enhance adaptability and innovation [8] - The Army emphasizes continuous transformation and evolution with technology, moving away from outdated systems [16][17] - The Army is exploring AI and autonomy to expedite deployment of needed capabilities on the battlefield [8] Procurement & Industry Collaboration - The Army is changing its procurement approach to adapt to rapidly changing technology, including buying in tranches for technologies like drones [6] - The Army is inviting industry partners to participate in training rotations to identify needs and solutions [9] - The Army seeks increased involvement of industry partners in manufacturing for the Army, leveraging commercial technologies [30][31] - The Army is balancing the need for exquisite capabilities with more affordable and rapidly fieldable technologies [22][23] Personnel & Training - The Army is adapting training and organizational structures to incorporate lessons learned from global conflicts [24][26] - The Army is re-evaluating required personnel skills, including the need for coders, cyber spectrum managers, and autonomous system operators at various levels [18]

Core Insights - The U.S. Army is undergoing a significant transformation with the introduction of "transformation in contact" (TIC) brigades, which utilize advanced technologies such as artificial intelligence, autonomous vehicles, and drones [2][3] - The Army Transformation Initiative aims to restructure the military, focusing on rapid adaptation and modernization in response to evolving battlefield dynamics [3][4] - The initiative includes job repositioning and a shift in defense spending towards more cost-effective and quickly produced military technologies, moving away from traditional, expensive systems [4][5][6] Group 1 - The Joint Readiness Training Center in western Louisiana, known as the "Box," spans 242,000 acres and is used for soldier combat training [1] - The 1st Brigade of the 101st Airborne Division recently completed a two-week training rotation, showcasing the Army's commitment to modernizing its forces [1][2] - The TIC brigade represents the most advanced military unit to date, equipped with nearly 400 drones and enhanced connectivity through SpaceX Starlink [2][3] Group 2 - The Army is experiencing a "paradigm shift" as it embraces new technologies and operational strategies to maintain pace with advancements in warfare [3] - The Army Transformation Initiative, approved by Defense Secretary Pete Hegseth, is expected to be the largest restructuring in a generation, focusing on agility and effectiveness [3][4] - The initiative aims to eliminate ineffective procurement practices and prioritize investments in technologies that enhance battlefield performance [5][6]

Army Transformation Initiative - The US Army is undergoing a significant restructuring to modernize its operations, procurement, and preparation for future warfare [1][2] - The Army Transformation Initiative is led by Secretary Dan Driscoll and Chief of Staff General Randy George [3] - The initiative aims to accelerate the Army's operational speed and efficiency by discontinuing the acquisition of outdated technologies [3] Technological Advancements - The Army's most modern brigade incorporates nearly 400 drones, autonomous vehicles, and an AI-enabled network [4] - The brigade utilizes drones from Skyo and Shield AI, along with Starlink-enabled internet connections [4] - General Motors infantry squad vehicles are being retrofitted with autonomous driving capabilities through a partnership with Silicon Valley startup Applied Intuition [5] - The integration of 40 new technologies from 10 different companies focuses on continuous transformation [6] Collaboration and Innovation - Non-traditional defense contractors have engineers embedded with the 2,000 soldiers to facilitate rapid problem-solving and technology integration [5] - On-site engineers resolved a drone power issue within 24 hours, avoiding weeks of troubleshooting [5][6]