Textron reported higher third-quarter revenue and earnings, helped by increased jet deliveries at Textron Aviation and growth at Textron Systems. The company also raised its full-year earnings and cash-flow outlook, citing congressional approval of funding for the U.S. Army’s MV-75 Cheyenne program.
Key details
- Earnings and revenue: Third-quarter revenue rose 4% year over year to $3.8 billion, an increase of $149 million. Earnings from continuing operations were $1.56 per share, compared with $1.31 a year earlier. Adjusted earnings were $1.76 per share, up from $1.55.
- Cash flow and shareholder returns: Manufacturing cash flow before pension contributions was $418 million, versus $281 million a year earlier. Net cash provided by operating activities for the manufacturing group was $512 million, up from $348 million. Textron repurchased $239 million of its shares during the quarter.
- Textron Aviation: Revenue increased 14% to $1.7 billion. Aircraft revenue rose $152 million, mainly on higher volume and a more favorable mix, including more Citation jets; aftermarket parts and services revenue increased $49 million on higher volume and pricing. The company delivered 51 jets, compared with 42 a year earlier, and 32 commercial turboprops, down from 39.
- Other businesses: Textron said Textron Systems had double-digit revenue growth, citing program execution. Bell made operational progress on the MV-75 Cheyenne program.
- Army program funding: Congress approved the Army’s Above Threshold Reprogramming request related to the MV-75 program. Textron said its updated outlook reflects that approval and contract modifications obligating the related funding.
- Raised 2026 outlook: Textron now expects GAAP earnings from continuing operations of $5.64 to $5.74 per share, up from its previous range of $5.39 to $5.59. Its adjusted EPS forecast is now $6.55 to $6.65, compared with $6.40 to $6.60 previously. The company also raised its manufacturing cash-flow-before-pension-contributions outlook to $800 million to $900 million from $700 million to $800 million.
The higher outlook reflects both the funding approval tied to the Cheyenne program and Textron’s stronger quarterly performance. The company’s reported GAAP earnings and its adjusted earnings are separate measures; the adjusted figure was higher in the quarter and is also the basis for a distinct full-year forecast.