Textron (TXT) Q3 2026 Earnings Report

The call was broadly positive, supported by higher revenue, adjusted EPS and manufacturing cash flow, raised full-year guidance, strong Aviation demand, 16% growth at Textron Systems, MV-75 funding approval and progress on strategic initiatives. Offsetting issues included Bell's revenue and profit declines, continuing MV-75 funding and LRIP timing uncertainty, Aviation manufacturing inefficiencies, supply constraints and declines at Kautex and the Finance segment. The highlights significantly outweighed the lowlights.

Textron raised expected full year adjusted earnings per share to be in the range of $6.55 to $6.65 from the prior range of $6.40 to $6.60, and expected full year manufacturing cash flow before pension contributions to be in the range of $800 million to $900 million, up from the prior range of $700 million to $800 million; the total-year margin guidance is 11% to 12%, with Q4 expected to reach the low end of that guidance range, driven largely by turboprops and a relatively similar profile on jet deliveries. The $100 million increase in cash flow guidance was primarily driven by lower expected CapEx spend this year by about $100 million, while CapEx is expected to be kind of steady-state in both 2026 and 2027; the possible MV-75 LRIP 1 charge will probably go up to $110 million to $150 million if, as expected, that award pushes into next year. Lisa said the business is working toward around the 200 delivery range for all of its turboprops, jets and helicopters, Gen3 entry into service should begin in the first half of '27, and the Industrial separation or spin is expected to follow a 12-month to 18-month time line.