REVENUE GROWTH ACROSS EVERY MANUFACTURING SEGMENT

Textron Inc. (NYSE: TXT) has reported second quarter 2026 net income of $1.42 per share, compared with $1.35 in the second quarter of 2025. Adjusted net income, a non-GAAP measure, was $1.62 per share against $1.55 a year earlier. Total revenues reached $3,827 million, up 3% or $111 million on the prior year, with first-half revenues up $500 million or 7%. Net income for the quarter was $248 million, against $245 million in the comparable 2025 period.

Textron CEO Lisa M. Atherton said the second quarter continued a strong start to the year, with revenue growth in each manufacturing segment contributing to the higher first-half figure. She highlighted Bell’s progress on the MV-75 Cheyenne through the successful production of key long-lead parts and components, and noted that at Textron Aviation healthy demand had driven strong order activity while the Ascend programme continued to scale with the delivery of the first five aircraft to NetJets.

TEXTRON AVIATION: PRICING OFFSETS A FALL IN JET DELIVERIES

Textron Aviation recorded revenues of $1,544 million, up 1% or $22 million, comprising $17 million in higher aircraft revenues and $5 million in higher aftermarket parts and services. The composition of that increase is the more revealing figure: aircraft revenue growth was driven primarily by higher pricing, partially offset by lower volume and mix. The segment delivered 40 jets in the quarter against 49 in the second quarter of 2025 — a fall of nine units, or 18% — while commercial turboprop deliveries rose to 44 from 34. Lower Citation jet and defence volume drove the decline, partially offset by the turboprop increase.

Segment profit was $165 million, down $5 million or 3% year-on-year, attributed primarily to an unfavourable impact from manufacturing inefficiencies and lower aircraft volume and mix, partially offset by lower warranty costs. Textron Aviation’s backlog stood at $8.0 billion at quarter end. The segment now also incorporates Pipistrel following a segment realignment effective 4 January 2026, under which the Textron eAviation segment was eliminated as a separate reporting unit — Pipistrel moving into Textron Aviation to leverage its development, manufacturing and sales capability, eAviation’s military manned and unmanned products moving into Textron Systems, and certain digital flight control and air vehicle management research reported within corporate expenses.

BELL: MILITARY VOLUME DRIVES 6% GROWTH, BUT PROGRAMME MIX WEIGHS ON PROFIT

Bell revenues were $1,074 million, up 6% or $58 million, driven by $47 million in higher military revenues largely attributable to increased H-1 production volume and the MV-75 programme, with commercial helicopters, parts and services contributing an additional $11 million primarily on higher pricing. Bell delivered 36 commercial helicopters in the quarter, up from 32 a year earlier. Segment profit of $75 million was down $5 million or 6%, primarily due to unfavourable programme performance and military programme mix, partially offset by lower research and development costs. Bell’s backlog closed the quarter at $7.5 billion.

THE MV-75 FUNDING DISCLOSURE

The most consequential disclosure in the release concerns the MV-75 Cheyenne. Textron reiterated full-year 2026 GAAP earnings per share guidance of $5.39 to $5.59, or $6.40 to $6.60 on an adjusted basis, and manufacturing cash flow before pension contributions of $700 million to $800 million. However, the company stated that this outlook assumes receipt of additional fiscal year 2026 funding on the MV-75 Cheyenne programme through an Above Threshold Reprogramming request. Absent any additional funding, and inclusive of other outlook assumptions, adjusted EPS could be negatively impacted by $0.20 to $0.30 and cash flow by $150 million to $250 million.

An Above Threshold Reprogramming request requires congressional approval to move appropriated funds between programme lines beyond specified limits, meaning the outcome sits outside Textron’s control. The company listed among its forward-looking risk factors the risk that additional US Government fiscal 2026 funding for the MV-75 programme is not approved and obligated pursuant to a contract modification, and that it incurs significant unreimbursed costs as a result. For a programme Atherton identified as a highlight of the quarter’s operational progress, the funding dependency represents a material qualification on the guidance.

SYSTEMS, INDUSTRIAL AND THE DISPOSAL PROCESS

Textron Systems revenues were $347 million, up 7% or $23 million, primarily on higher volume in armoured land vehicles and military training and support services provided by Airborne Tactical Advantage Company. Segment profit rose $4 million or 10% to $44 million on lower research and development costs, with backlog at $3.3 billion. Industrial revenues were $848 million, up 1% or $9 million, with Kautex up $17 million on pricing and foreign exchange movements while Textron Specialized Vehicles fell $8 million reflecting lower volume and mix and the disposal of the Powersports business. Industrial segment profit of $59 million was up $5 million or 9%, with pricing net of inflation including tariffs recovered in the quarter that had previously been imposed under the International Emergency Economic Powers Act.

Textron confirmed it has initiated a sale process for the Industrial segment, and identified among its risk factors the uncertainty related to satisfying the necessary conditions to consummate the separation and to realising its anticipated benefits on a timely basis or at all. On cash, net cash provided by operating activities of the manufacturing group was $235 million against $395 million a year earlier, with manufacturing cash flow before pension contributions of $154 million against $336 million — a decline driven substantially by a $157 million inventory build in the quarter and $95 million in capital expenditure, up from $78 million. Textron returned $209 million to shareholders through share repurchases during the quarter.