Textron | 10-K: FY2027 Revenue Misses Estimate at USD 14.8 B

Revenue: As of FY2027, the actual value is USD 14.8 B, missing the estimate of USD 16.17 B.EPS: As of FY2027, the actual value is USD 5.11, missing the estimate of USD 6.4284.EBIT: As of FY2027, the actual value is USD 1.263 B.Consolidated Financial PerformanceGross Margin: Gross margin as a percentage of Manufacturing revenues was 17.8% in 2025, a decrease from 18.0% in 2024 and 20.5% in 2023.Research and Development Costs: These costs increased by 6% to $521 million in 2025, from $491 million in 2024, but were lower than $570 million in 2023.Selling and Administrative Expense: This expense saw a 1% increase to $1,173 million in 2025, compared to $1,156 million in 2024 and $1,225 million in 2023.Interest Expense, Net: Net interest expense rose by 30% to $126 million in 2025, from $97 million in 2024 and $77 million in 2023.Special Charges: Special charges significantly decreased by 95% to $4 million in 2025, from $78 million in 2024 and $126 million in 2023.Non-service Components of Pension and Postretirement Income, Net: This component increased by 1% to $266 million in 2025, from $263 million in 2024 and $237 million in 2023.Total Backlog: The total backlog increased by 5% in 2025 to $18,823 million, up from $17,908 million in 2024.Segment-Specific PerformanceTextron AviationRevenues: Total revenues increased by 13% to $5,955 million in 2025, from $5,284 million in 2024.Aircraft Revenues: Increased by 16% to $3,922 million in 2025, compared to $3,374 million in 2024.Aftermarket Parts and Services Revenues: Increased by 6% to $2,033 million in 2025, compared to $1,910 million in 2024.Aircraft Deliveries: 171 Citation jets and 146 commercial turboprops were delivered in 2025, up from 151 Citation jets and 127 commercial turboprops in 2024.Cost of Sales: Increased by 13% to $4,637 million in 2025, from $4,102 million in 2024.Research and Development Costs: Increased by 3% to $214 million in 2025, from $208 million in 2024.Selling and Administrative Expense: Remained flat at $410 million in 2025, compared to $408 million in 2024.Segment Profit: Increased by 23% to $694 million in 2025, from $566 million in 2024.Profit Margin: Improved to 11.7% in 2025, from 10.7% in 2024.Backlog: Decreased by -2% to $7,724 million at January 3, 2026, from $7,845 million at December 28, 2024.BellRevenues: Total revenues increased by 20% to $4,282 million in 2025, from $3,579 million in 2024.Military Aircraft and Support Programs Revenues: Increased by 28% to $2,618 million in 2025, compared to $2,048 million in 2024.Commercial Helicopters, Parts and Services Revenues: Increased by 9% to $1,664 million in 2025, compared to $1,531 million in 2024.Commercial Helicopter Deliveries: 169 commercial helicopters were delivered in 2025, slightly down from 172 in 2024.Cost of Sales: Increased by 22% to $3,537 million in 2025, from $2,899 million in 2024.Research and Development Costs: Increased by 58% to $153 million in 2025, from $97 million in 2024.Selling and Administrative Expense: Increased by 8% to $229 million in 2025, from $213 million in 2024.Segment Profit: Decreased by -2% to $363 million in 2025, from $370 million in 2024.Profit Margin: Decreased to 8.5% in 2025, from 10.3% in 2024.Backlog: Increased by 4% to $7,795 million at January 3, 2026, from $7,469 million at December 28, 2024, including a $1.3 billion award for the MV-75 program prototype testing.Textron SystemsRevenues: Remained flat at $1,247 million in 2025, compared to $1,241 million in 2024.Cost of Sales: Increased by 1% to $939 million in 2025, from $929 million in 2024.Research and Development Costs: Decreased by -12% to $45 million in 2025, from $51 million in 2024.Selling and Administrative Expense: Decreased by -18% to $88 million in 2025, from $107 million in 2024, partly due to a $16 million gain from an early termination of a vendor contract.Segment Profit: Increased by 14% to $175 million in 2025, from $154 million in 2024.Profit Margin: Improved to 14.0% in 2025, from 12.4% in 2024.Backlog: Increased by 27% to $3,304 million at January 3, 2026, from $2,594 million at December 28, 2024, with new orders including $480 million for Ship-to-Shore Connector and $475 million for ATAC’s U.S. Navy Fighter Jet Services.IndustrialRevenues: Total revenues decreased by -9% to $3,213 million in 2025, from $3,515 million in 2024.Kautex Revenues: Decreased to $1,883 million in 2025, from $1,891 million in 2024.Textron Specialized Vehicles Revenues: Decreased by -18% to $1,330 million in 2025, compared to $1,624 million in 2024, largely due to the disposition of the Powersports business.Cost of Sales: Decreased by -9% to $2,733 million in 2025, from $2,993 million in 2024.Research and Development Costs: Decreased by -7% to $67 million in 2025, from $72 million in 2024.Selling and Administrative Expense: Decreased by -10% to $268 million in 2025, from $299 million in 2024.Segment Profit: Decreased by -4% to $145 million in 2025, from $151 million in 2024.Profit Margin: Increased to 4.5% in 2025, from 4.3% in 2024.Textron eAviationRevenues: Decreased by -18% to $27 million in 2025, from $33 million in 2024.Cost of Sales: Decreased by -7% to $27 million in 2025, from $29 million in 2024.Research and Development Costs: Decreased by -33% to $42 million in 2025, from $63 million in 2024.Selling and Administrative Expense: Increased by 24% to $21 million in 2025, from $17 million in 2024.Segment Loss: Decreased by -17% to -$63 million in 2025, from -$76 million in 2024.FinanceRevenues: Increased to $75 million in 2025, from $50 million in 2024.Selling and Administrative Expense: Increased to $8 million in 2025, from -$4 million in 2024.Interest Expense, Net: Decreased to $18 million in 2025, from $19 million in 2024.Segment Profit: Increased to $49 million in 2025, from $35 million in 2024.Finance Receivables, Net: Totaled $574 million at January 3, 2026, down from $603 million at December 28, 2024.Nonaccrual Finance Receivables: Represented 0.34% of finance receivables at January 3, 2026, down from 1.61% at December 28, 2024.Cash Flow InformationManufacturing Group Cash FlowsOperating Activities: Net cash provided was $1,327 million in 2025, up from $1,008 million in 2024.Investing Activities: Net cash used was -$264 million in 2025, compared to -$288 million in 2024.Financing Activities: Net cash used was -$530 million in 2025, a significant decrease from -$1,438 million in 2024.Finance Group Cash FlowsOperating Activities: Net cash provided was $28 million in 2025, up from $8 million in 2024.Investing Activities: Net cash provided was $40 million in 2025, up from $3 million in 2024.Financing Activities: Net cash used was -$38 million in 2025, compared to -$16 million in 2024.Consolidated Cash FlowsOperating Activities: Net cash provided was $1,313 million in 2025, up from $1,015 million in 2024.Investing Activities: Net cash used was -$207 million in 2025, compared to -$284 million in 2024.Financing Activities: Net cash used was -$543 million in 2025, a significant decrease from -$1,454 million in 2024.Outlook / GuidanceBell expects to be awarded the long-lead Low-Rate Initial Production (LRIP) phase of the MV-75 contract in late 2026 or early 2027, anticipating an unfavorable cumulative catch-up program adjustment of $60 million to $110 million, though the overall program is still projected to generate a positive profit margin. Effective January 4, 2026, the Textron eAviation segment will be eliminated as a separate reporting segment, with its activities realigned into Textron Aviation, Textron Systems, and corporate expenses. On February 11, 2026, [德事隆]’s Audit Committee approved a new program for the repurchase of up to 25 million shares of common stock, replacing the prior 2023 program, intended to offset dilution and for opportunistic capital management.