Textron reported a solid fourth-quarter showing, buoyed by a rebound in its aviation operations and continued demand for spare parts and maintenance services. The Rhode Island-based manufacturer said its aviation segment benefited from improved supply-chain conditions and a recovery in production following last year’s work stoppage associated with the IAM union strike.
The company said aviation revenue rose 36% in the quarter as deliveries climbed. Textron Aviation delivered 49 jets during the period, up from 32 a year earlier, and 43 commercial turboprops, compared with 38 previously. Management cited strong aftermarket parts and services demand as a key contributor to segment profitability.
Bell, Textron’s helicopter and tiltrotor unit, also posted higher sales, with quarterly revenue up 11%. Bell’s performance was supported by increased military demand tied to the Bell MV-75 tiltrotor program with the U.S. Army, which helped offset softer commercial demand in that business.
For the quarter ended January 3, the company reported adjusted earnings of $1.73 per share, an increase from $1.34 per share in the year-ago quarter. Total revenue for the quarter rose 16% to $4.18 billion. Analysts, on average, had expected adjusted earnings of $1.70 per share and revenue of $4.10 billion.
Looking ahead, Textron provided revenue guidance for 2026 of approximately $15.5 billion. That forecast compared with an LSEG consensus of $15.46 billion. The company projected adjusted full-year profit in a range of $6.40 to $6.60 per share, below the average analyst estimate of $6.84 per share.
Investors reacted to the profit outlook: Textron shares slipped about 4% in pre-market trading after the company released its guidance.
Contextual notes
- The aviation segment’s improvement was attributed to smoother supply chains and production recovery following last year’s IAM union strike-related disruption.
- Bell’s quarterly revenue increase was driven by military orders, in particular demand linked to the MV-75 tiltrotor program for the U.S. Army, which mitigated weaker commercial activity.