stockrowWhat it does
Textron is a multi-industry company that makes aircraft, defense products and industrial equipment and provides related services and financing. Founded in 1923 and headquartered in Providence, it is led by Chief Executive Officer Lisa M. Atherton.
Textron Aviation makes and services Cessna and Beechcraft aircraft, ranging from piston-engine training planes to business jets and turboprops. Its buyers include businesses, charter and fleet operators, individual owners, training schools and governments. It also maintains aircraft and sells replacement parts. Bell makes military and commercial helicopters and tiltrotor aircraft, which combine features of helicopters and fixed-wing planes. Bell supports those aircraft after sale with parts, repairs and training.
Textron Systems supplies military and other customers with products such as marine craft, unmanned aircraft, armored vehicles and aircraft engines. It also provides military training and other services. Industrial businesses make automotive components, golf cars, utility vehicles and equipment used at airports and on turf. A finance business primarily lends to buyers of Textron Aviation aircraft and Bell helicopters.
Textron reported six segments in 2025. At the start of 2026, it moved the activities of its separate eAviation segment into other parts of the company. Textron is also working toward a separation of its Industrial segment.
How it makes money
Textron generated $14.8 billion in revenue in 2025 and $3.8 billion in the third quarter of 2026.
The company earns revenue from selling aircraft and other manufactured products, supplying parts and services, performing long-term government contracts and providing financing. Textron Aviation’s two principal product lines are aircraft and aftermarket parts and services. The latter includes maintenance, inspection, repair and training devices. Bell sells military and commercial aircraft and supports its installed fleet through parts, repairs, training and other services. Those activities provide business after an aircraft’s initial sale, although their volume and pricing can change.
Textron Aviation generated $6.0 billion in 2025 revenue, while Bell generated $4.3 billion. At Textron Aviation, higher aircraft volume and mix, higher prices and increased aftermarket activity contributed to revenue growth in 2025. Bell’s revenue rose with more work on the MV-75 military program and sustainment programs, as well as higher commercial revenue.
Textron Systems earns revenue from defense products and services, including military training. Industrial sells automotive components and specialized vehicles through dealers and directly to customers. Finance provides loans primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters; its segment results include interest income and expense.
For many long-term government contracts, Textron recognizes revenue as it incurs costs relative to its estimated total costs. Changes in those estimates can alter reported profit. In the third quarter of 2026, Textron Aviation’s higher aircraft and aftermarket revenue reflected higher volume and pricing, while Bell’s revenue fell with lower military and commercial volume.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Textron Aviation | $6.0 billion | 40.2% | 12.7% |
| Bell | $4.3 billion | 28.9% | 19.6% |
| Industrial | $3.2 billion | 21.7% | −8.59% |
| Textron Systems | $1.2 billion | 8.43% | 0.48% |
| Finance | $75.0 million | 0.51% | 50.0% |
| Textron eAviation | $27.0 million | 0.18% | −18.2% |
Customers and how it sells
Textron sells to commercial and government customers around the world. In 2025, the United States accounted for 69.5% of revenue. Contracts with the U.S. Government, including government-sponsored foreign military sales, generated approximately 27% of consolidated revenue, primarily at Bell and Textron Systems.
Textron Aviation’s customers include corporate aviation departments, fractional aircraft businesses, charter and fleet operators, individual buyers, airlines, training schools and military and government operators. It sells worldwide through its own sales force and authorized independent representatives. Its service network includes company-operated and independent centers.
Bell supplies the U.S. Government and military customers abroad. Commercial helicopter customers include corporate and private operators, law enforcement, utilities, emergency medical operators and governments. Bell also provides support to owners and operators after delivery.
Industrial serves automotive manufacturers through Kautex. Textron Specialized Vehicles sells to golf courses, resorts, municipalities, consumers and commercial users, among others, through independent distributors and dealers as well as factory-direct resources. Kautex locates plants near its automotive customers. The Finance business also makes cross-border loans for aircraft sold outside the United States.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $10.3 billion | 69.5% | 6.27% |
| Other international | $1.9 billion | 13.2% | 0.26% |
| Europe | $1.3 billion | 8.71% | 6.53% |
| South and Latin America | $1.3 billion | 8.65% | 46.5% |
Suppliers and costs
Textron relies on other companies for raw materials, major components and subsystems, and uses subcontractors for some services. The company has experienced production delays and inefficiencies from shortages and late delivery of critical components. In aircraft manufacturing, a replacement vendor’s part may need regulatory certification before it can be used.
Textron has identified engines, extrusions, spars and GPUs as supply constraints. It has qualified a second supplier of spars and is certifying additional suppliers and dual-sourcing materials for Bell gearboxes and rotor blades. Textron is also adding some manufacturing capacity internally.
Manufacturing costs include materials, labor and overhead, alongside research and development and selling and administrative expenses. Textron invested $521 million in research and development and $383 million in capital expenditures in 2025. Cost of sales rose in 2025, partly because of inflation and higher volume and mix.
Under fixed-price government contracts, Textron generally absorbs costs above the agreed price. Other contracts reimburse allowable costs subject to their terms. Tariffs have affected businesses that source materials and components outside North America, although Textron had not experienced a material adverse impact from tariffs at the time of its annual report.
- Revenue$14.8B
- Cost of revenue−$12.1B
- Research and development−$521.0M
- Selling, general and administrative−$1.2B
- Operating income$1.0B
Competitive position
Textron competes for sales of business jets, turboprops, helicopters, defense products, automotive components and specialized vehicles. No specific competitors are identified in the available business and risk discussions. In U.S. defense, companies compete through bidding processes that can require substantial engineering work and repeated bids for individual orders. Textron can win or lose government programs, and awards can face protests from unsuccessful bidders.
Textron Aviation supports its aircraft through company-operated and independent service centers, parts support and mobile service units. Bell provides support for an installed base of approximately 13,000 helicopters, using its own and independent service facilities. Both businesses offer services after an initial aircraft sale.
Our reading: The installed aircraft fleets and support networks are a meaningful competitive asset because they connect Textron to operators needing maintenance, parts and training; they do not eliminate competition for new aircraft sales. (item1, item1a)
Aircraft models require certification before they can be manufactured and sold, while Textron has invested in developing new aircraft and military programs. Our reading: Certification and development demands can make entry difficult, but their protection is limited by competitors’ ability to develop their own products and by Textron’s need to keep its offerings current. (item1, item1a)
Textron owns or licenses patents and trademarks, but does not consider any single intellectual property right material to the business as a whole.
Growth opportunities
Textron’s growth plans include new aircraft, military programs, aftermarket services and production improvements. In 2025, revenue increased 8%, helped by higher MV-75 program volume at Bell and higher aircraft and aftermarket revenue at Textron Aviation. Backlog reached $18.8 billion at year-end; backlog represents contracted amounts Textron expects to recognize as it performs, not a guarantee of future revenue.
Bell is developing the MV-75 tiltrotor for the U.S. Army. In the third quarter of 2026, Congress approved a $350 million funding request related to the program, and approximately $300 million was obligated through contract modifications. Textron expects a continuing resolution could delay the next production-related award. At Textron Systems, the company received a $230 million contract modification for two additional Ship-to-Shore Connector craft.
Textron Aviation is advancing its Gen 3 light jets toward certification and has rolled out the first production CJ4 Gen 3. It is investing in fabrication capacity, automation and tooling to improve parts availability and productivity. The company is also working on the Denali turboprop and introduced a SkyCourier concept using autonomous aviation software.
Industrial is ramping an automotive offering for a robotaxi operator and developing battery-related products. Textron continues to pursue a separation of the segment and expects to remain within the timeline it previously communicated.
- $12.4BFY2021
- $12.9BFY2022
- $13.7BFY2023
- $13.7BFY2024
- $14.8BFY2025
Structural risks
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Aircraft demand: Business jet, turboprop and commercial helicopter demand is cyclical and difficult to forecast. Customers may defer or cancel orders, and backlog conversion depends on production capacity, customer needs and credit availability.
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Government funding and contracts: U.S. defense programs depend on appropriations and government priorities. A material reduction or delay in MV-75 funding could hurt Textron’s cash flow and results. The government can also modify or terminate contracts.
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Contract costs: Textron bears cost overruns on fixed-price contracts and may not recover all costs under other contract types. Changes in estimated costs can lead to adjustments to reported profit.
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Suppliers and production: Component shortages, supplier performance and certification requirements can delay aircraft production. Inflation, labor shortages and shipping costs can also raise expenses.
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Development and certification: New aircraft and technologies can encounter technical difficulties, cost overruns or certification delays. Products may not gain the customer acceptance Textron expects.
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Cybersecurity and trade: Attacks on Textron or its business partners could disrupt operations or expose sensitive information. Changes to tariffs or trade agreements could increase costs and disrupt supply chains.
Bottom line
Our reading
Textron combines aircraft manufacturing and long-term defense work with aftermarket services, industrial products and financing; its aircraft fleets and service networks provide continuing customer relationships. (item1)
Our reading: The business depends on converting aircraft demand and government contracts into deliveries and services while managing supply constraints, development costs and funding decisions. The planned Industrial separation would change that mix, while MV-75 remains an important source of both program activity and exposure. (item1a, call_prepared, call_qa)