Textron raises 2026 profit and cash flow forecast on Q3 results

Textron Inc. (NYSE: TXT) said on Oct. 29 that third-quarter EPS was $1.56, compared with $1.31 a year earlier, and adjusted EPS was $1.76, compared with $1.55 a year earlier. The company also raised its full-year 2026 outlook.

The company said in a press release that third-quarter revenue was $3.8 billion, up 4%, or $149 million, from the prior year.

Here's how the company did:

• EPS: $1.56 vs. $1.31 a year earlier
• Adjusted EPS: $1.76 vs. $1.55 a year earlier
• Revenue: $3.8 billion, up 4% from a year earlier
• Manufacturing cash flow before pension contributions: $418 million vs. $281 million a year earlier

Full-year outlook

Textron raised its full-year 2026 GAAP EPS expectation to $5.64 to $5.74, up from $5.39 to $5.59. It raised its adjusted EPS range to $6.55 to $6.65, up from $6.40 to $6.60.

The company also raised its manufacturing cash flow before pension contributions outlook to $800 million to $900 million, up from $700 million to $800 million.

The company said the updated outlook reflects the U.S. Army's receipt of Congressional approval for an Above Threshold Reprogramming request tied to the MV-75 Cheyenne program, and the associated contract modifications obligating that funding.

The company's July outlook had said that without that additional funding, adjusted EPS could be reduced by $0.20 to $0.30 and cash flow by $150 million to $250 million.

Segment results

Textron Aviation revenue was $1.7 billion, up 14%, or $201 million, from a year earlier. Textron Aviation delivered 51 jets, compared with 42 a year earlier, and 32 commercial turboprops, down from 39. Segment profit was $179 million, up 4%.

Bell revenue was $933 million, down 9%, or $93 million. Lower military revenue, largely due to lower volume on the MV-75 program, drove the decline. Bell delivered 29 commercial helicopters, down from 30. Segment profit was $76 million, down $16 million, or 17%.

Textron Systems revenue was $360 million, up 16%, or $50 million, largely on higher volume in armored land vehicles and military training services. Segment profit was $57 million, up $10 million, or 21%.

Industrial revenue was $765 million, up 1%. Segment profit was $38 million, up $7 million, or 23%.

Finance segment revenue was $13 million and segment profit was $5 million, compared with $26 million and $18 million a year earlier. The company said the decline reflects $11 million of gains recognized in the third quarter of 2025 from the disposition of non-captive assets.

Cash and capital returns

Net cash from operating activities for the manufacturing group was $512 million, compared with $348 million a year earlier. The company returned $239 million to shareholders through share repurchases in the quarter.

The company will host a conference call on Oct. 29 at 8:00 a.m. Eastern to discuss the results and outlook.