Key Highlights

  • Adjusted EPS of USD 1.76 beat the consensus estimate of USD 1.43 and compared with USD 1.55 a year earlier.
  • Revenue of USD 3.75 billion rose 4% but landed slightly below the consensus estimate of USD 3.77 billion.
  • Textron Aviation Revenue rose 14% to USD 1.68 billion on 51 jet deliveries, while Bell revenue fell 9%.
  • Guidance rose to adjusted EPS of USD 6.55 to 6.65 and Manufacturing Cash Flow of USD 800 to 900 million.

Textron Inc. (NYSE:TXT) reported third quarter 2026 adjusted Earnings Per Share of USD 1.76, ahead of a consensus estimate of USD 1.43 and up from USD 1.55 a year earlier. GAAP diluted EPS was USD 1.56 versus USD 1.31, on Net Income of USD 270 million. Revenues of USD 3.75 billion increased 4% from USD 3.60 billion but came in just below a consensus estimate of USD 3.77 billion. Segment profit was USD 355 million compared with USD 360 million a year ago.

Aviation and Systems Gains Offset a Softer Bell

Textron Aviation revenue climbed USD 201 million to USD 1.68 billion, with aircraft revenue up USD 152 million and aftermarket revenue up USD 49 million. The segment delivered 51 jets and 32 commercial turboprops, against 42 jets and 39 turboprops a year earlier, and Chief Executive Officer Lisa Atherton said third quarter orders were the highest for that period since 2023. Segment profit rose to USD 179 million from USD 172 million, with manufacturing inefficiencies a partial offset.

Textron Systems revenue rose 16% to USD 360 million and segment profit gained USD 10 million to USD 57 million. Bell revenue fell 9% to USD 933 million on lower MV-75 Volume and commercial helicopter parts and services, and its segment profit declined to USD 76 million from USD 92 million. Industrial revenue of USD 765 million was up 1%, with segment profit of USD 38 million.

Raised Guidance and the MV-75 Funding Picture

The chief financial officer said full year adjusted EPS guidance was lifted to USD 6.55 to 6.65 from USD 6.40 to 6.60, and manufacturing cash flow before pension contributions to USD 800 million to 900 million from USD 700 million to 800 million. Lower Capital spending, about USD 100 million less than earlier plans, was the biggest driver of the cash flow increase, along with customer deposits tied to Aviation orders.

Congress approved a USD 350 million funding request for the MV-75 program, and roughly USD 300 million was obligated through contract modifications in the quarter, so no cumulative catch up adjustment was recorded. Management described the program as steady in the fourth quarter, with a continuing resolution that runs to December 11 and about USD 2.3 billion for the program in 2027 budget proposals. Manufacturing cash flow before pension contributions was USD 418 million, up from USD 281 million, and Textron repurchased about 2.9 million shares for USD 239 million.

Signposts for the Fourth Quarter

Several dated items frame the next report. The December 11 expiry of the continuing resolution is the first, since MV-75 funding for 2027 depends on appropriations. The second is the mating of the first MV-75 fuselage with its wing assembly, which management scheduled for the fourth quarter.

Backlog is a third marker, with total Backlog at USD 19.05 billion at the end of the quarter, including USD 8.0 billion at Aviation, USD 7.6 billion at Bell and USD 3.5 billion at Systems. The fourth is the industrial segment separation, which management said remains on the timeline set in April. The company also flagged engines, extrusions, spars and auxiliary power units as the Supply items still limiting deliveries.