Textron reiterates 2026 GAAP EPS guidance of $5.39 to $5.59
Company expects 2026 adjusted EPS of $6.40 to $6.60
Textron sees 2026 manufacturing cash flow before pension contributions at $700 mln to $800 mln
Company says lack of additional MV-75 Cheyenne funding could lower adjusted EPS by $0.20-$0.30
Overview
U.S. multi-industry manufacturer's Q2 revenue rose 3% yr/yr, meeting analyst expectations
Adjusted EPS for Q2 increased to $1.62 from $1.55 last year
Company initiated sale process for Industrial segment
Result Drivers
Higher pricing - Textron Aviation and Bell segments reported increased revenues largely due to higher pricing, though Textron Aviation faced lower jet volume and manufacturing inefficiencies
Military programs - Bell segment revenue growth driven by higher military revenues, particularly from increased H-1 production and MV-75 program volume
Tariff recoveries - Industrial segment profit benefited from higher pricing, net of inflation, including tariffs recovered that were previously imposed under IEEPA
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Textron Inc is $99.62, about 3.6% above its July 27 closing price of $96.13
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
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