Textron Inc. (TXT) Third Quarter (Q3) 2025 Financial Results Analysis
$TXT (Textron Inc) reported its financial results for the third quarter of 2025 (ended September 27, 2025) on October 23, 2025, before the market opened. The company beat on adjusted EPS with $1.55 (vs. $1.47 estimate, +5.4%, +11% YoY), but revenues of $3.602 billion (+5% YoY, miss -2.7% vs. estimate). GAAP EPS was $1.31 (+11% YoY). Manufacturing cash flow before pensions was $281 million (+91% YoY), driven by Aviation and Bell. Total backlog increased to $19.1 billion (+12% YoY). TXT shares fell ~1.1% premarket on the revenue miss, despite the EPS beat and strong backlog.
Below is a detailed structured analysis. Data comes from the official press release, 10-Q, and post-earnings analysis.
1. Key Consolidated Results
$TXT (Textron Inc) showed solid revenue growth driven by Aviation and Bell, with stable margins and strong cash flow. The focus on adjusted metrics highlights operational execution, with a beat in EPS due to productivity and a favorable mix.
Crecimiento: Revenues +5%, YTD +6%. El CEO Scott Donnelly destacó: “Overall, third quarter revenue was up 5% for Textron with higher revenues at Aviation, Bell, and Textron Systems”.
2. Segment Analysis
$TXT (Textron Inc) generated mixed growth by segment, with Aviation and Bell driving revenues from strong deliveries, offsetting weakness in Industrial from divestiture. Backlog +$2.2B YoY from new contracts.
Observaciones: Aviation y Bell ~70% revenues; Systems upside en defense. YTD: Aviation deliveries +15%. El CFO Ted Cannistra señaló: “Strong cash generation positions us well for investments and returns”.
3. Cash Flow, Balance Sheet and Other Indicators
$TXT (Textron Inc) maintains robust liquidity with cash upside, low leverage for repurchases and capex. Emphasis on manufacturing cash supports $635M YTD in buybacks.
Q3 Ops Cash Flow: $348 million (+67% YoY).
Manufacturing Cash before Pensions YTD: Fuerte; FY guide $900M-$1.0B.
Q3 Capex: $76 million (+7%); FY ~$300M estimated.
Repurchases YTD: $635 millones.
Balance Sheet (Sep 27): Cash $1.446 billion (+4% YoY); total debt $3.394 billion; net debt ~$1.95B; net debt/EBITDA leverage ~1.2x. Equity $7.493 billion (+4%). Interest coverage >8x. Dividend yield ~0.1% ($0.02/share quarterly).
El CEO Donnelly comentó: “Higher Aviation deliveries, acceleration of MV-75 at Bell, and solid performance at Systems all contributed to a strong quarter”.
4. Full Year 2025 Guide and Outlook
$TXT (Textron Inc) reaffirmed FY2025 guidance due to momentum in Aviation and Bell, despite headwinds in Industrial. Focus on deliveries and backlog conversion for Q4.
Outlook 2026: Adj EPS +8-10% por Aviation growth y defense spending; upside en Bell commercial; riesgos: supply chain, defense budget, industrial cyclicality.
5. Conclusion and Implications
$TXT (Textron Inc), Q3 2025 results highlight its strength in the aerospace/defense market, with a beat in EPS, up in revenue, and record cash flow, offsetting revenue misses with solid backlog and execution. Reaffirmed guidance and a $1.4B cash balance sheet position TXT for growth in deliveries and returns. Long-term, a diversified portfolio and investments in eAviation support the upside. Recommendation: Hold/Accumulate for value investors (adjusted P/E ~18x, yield ~0.1%); catalysts in Q4 deliveries and 2026 defense.
This analysis is based on public data and is not financial advice. It is for informational purposes only and does not constitute an investment recommendation.
$TXT (Textron Inc) reported its financial results for the third quarter of 2025 (ended September 27, 2025) on October 23, 2025, before the market opened. The company beat on adjusted EPS with $1.55 (vs. $1.47 estimate, +5.4%, +11% YoY), but revenues of $3.602 billion (+5% YoY, miss -2.7% vs. estimate). GAAP EPS was $1.31 (+11% YoY). Manufacturing cash flow before pensions was $281 million (+91% YoY), driven by Aviation and Bell. Total backlog increased to $19.1 billion (+12% YoY). TXT shares fell ~1.1% premarket on the revenue miss, despite the EPS beat and strong backlog.
Below is a detailed structured analysis. Data comes from the official press release, 10-Q, and post-earnings analysis.
1. Key Consolidated Results$TXT (Textron Inc) showed solid revenue growth driven by Aviation and Bell, with stable margins and strong cash flow. The focus on adjusted metrics highlights operational execution, with a beat in EPS due to productivity and a favorable mix.
| Financial Metrics | Q3 2025 (GAAP/Adjusted) | YoY Growth | vs. Estimates | Notes |
| Revenues | $3.602 billion | +5% | Miss (-2.7%) | Aviation +10%, Bell +10%; Industrial -9% por divestiture. |
| Net Income (Continuing Ops) | $235 million | +5% | N/A | GAAP; excludes discontinued ops. |
| EPS GAAP | $1.31 | +11% | N/A | De $1.18 YoY; shares ~179M. |
| Adjusted EPS | $1.55 | +11% | $1.47 (exceeded +5.4%) | Excluye special items; tax rate ~23%. |
| Segment Profit (Manufacturing) | $339 million | +13% | N/A | Margin 11.1% (+80 bps). |
| Manufacturing Cash Flow before Pensions | $281 million | +91% | N/A | Ops cash $348M +67%; capex $76M. |
| Share Repurchases Q3 | $206 million | N/A | N/A | YTD $635M; $1B auth remaining. |
Crecimiento: Revenues +5%, YTD +6%. El CEO Scott Donnelly destacó: “Overall, third quarter revenue was up 5% for Textron with higher revenues at Aviation, Bell, and Textron Systems”.
2. Segment Analysis$TXT (Textron Inc) generated mixed growth by segment, with Aviation and Bell driving revenues from strong deliveries, offsetting weakness in Industrial from divestiture. Backlog +$2.2B YoY from new contracts.
| Segment | Q3 Revenues | YoY Revenue Growth | Segment Profit Q3 | Key Notes |
| Textron Aviation | $1.477 billion | +10% | $179 million (+40%) | 42 jets (vs 41), 39 turboprops (vs 25); backlog $7.7B. |
| Bell | $1.026 billion | +10% | $92 million (-6%) | 30 commercial helis (vs 44); backlog $8.2B (+$1.3B QoQ); MV-75 ramp-up. |
| Textron Systems | $307 million | +2% | $52 million (+33%) | Gain en vendor contract; backlog $3.2B (+$980M QoQ). |
| Industrial | $761 million | -9% | $31 million (-3%) | Impacto Powersports sale; specialized vehicles steady. |
| Finance | $26 million | +117% | $18 million (+260%) | Gains en asset dispositions. |
| Total Manufacturing | $3.576 billion | +5% | $339 million (+13%) | Backlog total $19.1B (+12% YoY). |
Observaciones: Aviation y Bell ~70% revenues; Systems upside en defense. YTD: Aviation deliveries +15%. El CFO Ted Cannistra señaló: “Strong cash generation positions us well for investments and returns”.
3. Cash Flow, Balance Sheet and Other Indicators$TXT (Textron Inc) maintains robust liquidity with cash upside, low leverage for repurchases and capex. Emphasis on manufacturing cash supports $635M YTD in buybacks.
Q3 Ops Cash Flow: $348 million (+67% YoY).
Manufacturing Cash before Pensions YTD: Fuerte; FY guide $900M-$1.0B.
Q3 Capex: $76 million (+7%); FY ~$300M estimated.
Repurchases YTD: $635 millones.
Balance Sheet (Sep 27): Cash $1.446 billion (+4% YoY); total debt $3.394 billion; net debt ~$1.95B; net debt/EBITDA leverage ~1.2x. Equity $7.493 billion (+4%). Interest coverage >8x. Dividend yield ~0.1% ($0.02/share quarterly).
El CEO Donnelly comentó: “Higher Aviation deliveries, acceleration of MV-75 at Bell, and solid performance at Systems all contributed to a strong quarter”.
4. Full Year 2025 Guide and Outlook$TXT (Textron Inc) reaffirmed FY2025 guidance due to momentum in Aviation and Bell, despite headwinds in Industrial. Focus on deliveries and backlog conversion for Q4.
| Metric | MY 2025 | Notes |
| Adjusted EPS | $6.00 - $6.20 | Reaffirmed; midpoint +9% YoY. |
| EPS GAAP | $5.19 - $5.39 | Reaffirmed. |
| Manufacturing Cash before Pensions | $900M - $1.0B | Reaffirmed; strong YTD track. |
| Aviation Deliveries | ~700 jets/turboprops | Up ~10%; backlog support. |
| Share Repurchases | $800M+ | Ongoing; $1B auth. |
| Tax Rate | ~23% | Kept. |
Outlook 2026: Adj EPS +8-10% por Aviation growth y defense spending; upside en Bell commercial; riesgos: supply chain, defense budget, industrial cyclicality.
5. Conclusion and Implications$TXT (Textron Inc), Q3 2025 results highlight its strength in the aerospace/defense market, with a beat in EPS, up in revenue, and record cash flow, offsetting revenue misses with solid backlog and execution. Reaffirmed guidance and a $1.4B cash balance sheet position TXT for growth in deliveries and returns. Long-term, a diversified portfolio and investments in eAviation support the upside. Recommendation: Hold/Accumulate for value investors (adjusted P/E ~18x, yield ~0.1%); catalysts in Q4 deliveries and 2026 defense.
This analysis is based on public data and is not financial advice. It is for informational purposes only and does not constitute an investment recommendation.