(TXT) Textron - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 15.968m USD | Total Return: 23% in 12m
Avg Turnover: 111M
EPS Trend: 59.2%
Qual. Beats: 1
Rev. Trend: 90.1%
Qual. Beats: 2
Warnings
Choppy Below Avwap Earnings
Tailwinds
Garp
Textron Inc. (TXT) is a multi-industry conglomerate specializing in aerospace, defense, and industrial manufacturing. The company operates through six distinct segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. Its portfolio includes iconic brands such as Cessna and Beechcraft for business and military aviation, alongside Bell for tiltrotor and helicopter production.
The company utilizes a diversified business model that balances cyclical commercial aviation sales with long-term government defense contracts. In the aerospace and defense sector, high barriers to entry exist due to intense regulatory requirements and the substantial capital expenditure needed for research and development. Textron is currently expanding into the sustainable flight market through its eAviation segment, which focuses on electric propulsion and light aircraft.
Beyond aviation, the Industrial segment provides specialized components like fuel systems for automotive OEMs and utility vehicles for the golf and power sports markets. Investors can find deeper insights into these revenue streams on ValueRay. The Finance segment supports the core business by providing credit solutions for aircraft and helicopter acquisitions.
- FLRAA contract execution at Bell drives long-term defense revenue growth
- Business jet demand and backlog strength dictate Textron Aviation margins
- Supply chain disruptions and labor costs pressure aerospace manufacturing profitability
- Kautex divestiture or restructuring impacts Industrial segment valuation and focus
- Interest rate fluctuations influence Textron Finance demand and aircraft leasing yields
| Net Income: 934.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.46 > 1.0 |
| NWC/Revenue: 14.94% < 20% (prev 20.87%; Δ -5.93% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.16b > Net Income 934.0m |
| Net Debt (2.37b) to EBITDA (1.61b): 1.47 < 3 |
| Current Ratio: 1.48 > 1.5 & < 3 |
| Outstanding Shares: last quarter (176.2m) vs 12m ago -4.08% < -2% |
| Gross Margin: 14.41% > 18% (prev 0.21%; Δ 1.42k% > 0.5%) |
| Asset Turnover: 86.58% > 50% (prev 81.89%; Δ 4.70% > 0%) |
| Interest Coverage Ratio: 12.38 > 6 (EBITDA TTM 1.61b / Interest Expense TTM 97.0m) |
| A: 0.13 (Total Current Assets 6.95b - Total Current Liabilities 4.68b) / Total Assets 18.1b |
| B: 0.33 (Retained Earnings 6.00b / Total Assets 18.1b) |
| C: 0.07 (EBIT TTM 1.20b / Avg Total Assets 17.5b) |
| D: 0.60 (Book Value of Equity 6.13b / Total Liabilities 10.1b) |
| Altman-Z'' = 2.99 = A |
| DSRI: 0.86 (Receivables 885.0m/940.0m, Revenue 15.2b/13.9b) |
| GMI: 1.42 (GM 14.41% / 20.51%) |
| AQI: 1.18 (AQ_t 0.47 / AQ_t-1 0.40) |
| SGI: 1.09 (Revenue 15.2b / 13.9b) |
| TATA: -0.01 (NI 934.0m - CFO 1.16b) / TA 18.1b) |
| Beneish M = -2.59 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 91.83 with a total of 843,700 shares traded.
Over the past week, the price has changed by +3.45%,
over one month by +3.79%,
over three months by -4.96% and
over the past year by +23.03%.
Textron has received a consensus analysts rating of 3.78. Therefore, it is recommended to hold TXT.
- StrongBuy: 7
- Buy: 2
- Hold: 8
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 103.5 | 12.7% |
P/E Trailing = 17.5248
P/E Forward = 13.8122
P/S = 1.0514
P/B = 1.9955
P/EG = 1.1811
Revenue TTM = 15.2b USD
EBIT TTM = 1.20b USD
EBITDA TTM = 1.61b USD
Long Term Debt = 3.45b USD (from longTermDebt, last quarter)
Short Term Debt = 412.0m USD (from shortTermDebt, last quarter)
Debt = 3.88b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.37b USD (calculated: Debt 3.88b - CCE 1.51b)
Enterprise Value = 18.3b USD (16.0b + Debt 3.88b - CCE 1.51b)
Interest Coverage Ratio = 12.38 (Ebit TTM 1.20b / Interest Expense TTM 97.0m)
EV/FCF = 25.93x (Enterprise Value 18.3b / FCF TTM 707.0m)
FCF Yield = 3.86% (FCF TTM 707.0m / Enterprise Value 18.3b)
FCF Margin = 4.65% (FCF TTM 707.0m / Revenue TTM 15.2b)
Net Margin = 6.15% (Net Income TTM 934.0m / Revenue TTM 15.2b)
Gross Margin = 14.41% ((Revenue TTM 15.2b - Cost of Revenue TTM 13.0b) / Revenue TTM)
Gross Margin QoQ = 8.66% (prev 12.10%)
Tobins Q-Ratio = 1.01 (Enterprise Value 18.3b / Total Assets 18.1b)
Interest Expense / Debt = 2.50% (Interest Expense 97.0m / Debt 3.88b)
Taxrate = 17.60% (47.0m / 267.0m)
NOPAT = 989.6m (EBIT 1.20b * (1 - 17.60%))
Current Ratio = 1.48 (Total Current Assets 6.95b / Total Current Liabilities 4.68b)
Debt / Equity = 0.48 (Debt 3.88b / totalStockholderEquity, last quarter 8.00b)
Debt / EBITDA = 1.47 (Net Debt 2.37b / EBITDA 1.61b)
Debt / FCF = 3.35 (Net Debt 2.37b / FCF TTM 707.0m)
Total Stockholder Equity = 7.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.32% (Net Income 934.0m / Total Assets 18.1b)
RoE = 12.13% (Net Income TTM 934.0m / Total Stockholder Equity 7.70b)
RoCE = 10.77% (EBIT 1.20b / Capital Employed (Equity 7.70b + L.T.Debt 3.45b))
RoIC = 7.30% (NOPAT 989.6m / Invested Capital 13.6b)
WACC = 7.85% (E(16.0b)/V(19.8b) * Re(9.26%) + D(3.88b)/V(19.8b) * Rd(2.50%) * (1-Tc(0.18)))
Discount Rate = 9.26% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -86.67 | Cagr: -4.97%
[DCF] Terminal Value 77.97% ; FCFF base≈657.4m ; Y1≈753.6m ; Y5≈1.11b
[DCF] Fair Price = 82.37 (EV 16.7b - Net Debt 2.37b = Equity 14.3b / Shares 173.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 59.23 | EPS CAGR: 4.86% | SUE: 2.16 | # QB: 1
Revenue Correlation: 90.09 | Revenue CAGR: 3.99% | SUE: 1.73 | # QB: 2
EPS current Quarter (2026-06-30): EPS=1.55 | Chg30d=-3.21% | Revisions=-53% | Analysts=15
EPS next Quarter (2026-09-30): EPS=1.66 | Chg30d=+0.52% | Revisions=+25% | Analysts=15
EPS current Year (2026-12-31): EPS=6.51 | Chg30d=+0.59% | Revisions=+50% | GrowthEPS=+6.8% | GrowthRev=+5.4%
EPS next Year (2027-12-31): EPS=7.30 | Chg30d=+0.02% | Revisions=+12% | GrowthEPS=+12.0% | GrowthRev=+3.9%
[Analyst] Revisions Ratio: -53%