One-glance verdict
Undervalued
$95.00 our estimate vs market $80.71
Wall Street consensus: $102.07 (7.4% higher than our fair-value estimate)
15% below our estimate, below the bear case
Fundamentals snapshot
Textron Inc.
TXT · NYQ · Industrials · Aerospace & Defense
Current price
$80.71
52-week range
$78.12 - $101.57
Market cap
$13.88B
Balance sheet
Watch
7.94x Adequate
Net debt $2.78B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.4% last year.
- Reward Returns 12.1% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 21.7% over 3 years.
What this company does
Textron Inc.
Textron is a large industrial company that builds and sells a wide range of products, from Cessna private jets and Bell helicopters to E-Z-GO golf carts and armored vehicles for the military. The company makes most of its money selling these big-ticket items to corporations, wealthy individuals, and governments around the world. This means its success is often linked to the overall health of the economy and changes in government defense spending.
How the company got here
Textron began in 1923 as a small textile company called Special Yarns Corporation. Founder Royal Little believed in diversification (owning different kinds of businesses) to protect the company from ups and downs in any single industry. Over the years, Textron bought many companies in different fields, including helicopter maker Bell Aircraft and golf car manufacturer E-Z-GO in the 1960s. By 1963, it had sold all its textile businesses to focus on aerospace, defense, and industrial products. Major additions like Cessna Aircraft in 1992 and Beechcraft in 2014 solidified its position as a major player in aviation.
What it actually does
Textron is a large industrial company that makes a wide variety of products you might see in the air, on a golf course, or used by the military. Think of them as a collection of well-known brands that produce everything from private jets and helicopters to snowmobiles and advanced defense equipment. Many of their products are highly specialized, like tiltrotor aircraft (which take off like a helicopter but fly like a plane) for the military or fuel tanks for cars. They also provide services like aircraft maintenance and financing for customers buying their products.
Textron Aviation
This is Textron's largest business, responsible for making and selling airplanes under the famous Cessna and Beechcraft brands. They build everything from small piston-engine planes for new pilots to business jets for corporate travel and turboprop planes used for regional transport. A big part of this segment is also the aftermarket (providing services after the initial sale), which includes selling spare parts and offering maintenance and repair for the thousands of their aircraft flying worldwide. This segment sells to a mix of private individuals, companies, and governments.
Bell
This is Textron's helicopter business, a leading producer of both military and commercial helicopters. For the military, Bell makes famous aircraft like the V-22 Osprey tiltrotor and attack helicopters. On the commercial side, their helicopters are used by police departments, for medical evacuations, and for corporate transport. This segment makes money by selling the aircraft themselves and by providing spare parts and support services to keep them flying.
Textron Systems
This segment focuses on advanced technology for defense, aerospace, and security customers, primarily governments. It produces things like unmanned aircraft systems (drones), armored vehicles, and advanced marine craft like the Ship-to-Shore Connector for the U.S. Navy. It also provides military training services and makes specialized engines for aircraft through its Lycoming Engines brand. This part of the company earns revenue from long-term government contracts for developing, producing, and supporting these high-tech systems.
Industrial
This is a mix of businesses that produce specialized vehicles and automotive parts. It includes well-known brands like E-Z-GO (golf cars), Arctic Cat (snowmobiles and off-road vehicles), and Jacobsen (professional turf-care equipment). Another major part of this segment is Kautex, which is a top supplier of plastic fuel tanks and other components for the automotive industry. Customers range from golf courses and consumers to large car manufacturers.
Textron eAviation
This was Textron's newest segment, created to focus on developing electric and sustainable aircraft. It was formed after Textron acquired Pipistrel, a company that makes light aircraft, including the world's first fully electric-powered airplane to be certified. However, as of early 2026, Textron announced it is closing this segment and moving its projects, including Pipistrel, into the Textron Aviation and Textron Systems divisions to better leverage their existing resources.
Finance
This is a small but important part of the company that helps customers buy Textron's main products. Operated by Textron Financial Corporation, this segment provides financing (loans) primarily for customers purchasing new or pre-owned Cessna and Beechcraft airplanes and Bell helicopters. It makes money from the interest and fees charged on these loans, essentially acting as a bank for its own customers to help facilitate sales for the manufacturing businesses.
What management is betting on now
Textron's leadership is focused on execution (delivering products and programs on time and on budget) across all its businesses. They are investing in new product development, such as the Beechcraft Denali aircraft and innovative battery systems for electric vehicles at Kautex. For the military, a major priority is advancing key programs like the Bell MV-75 tiltrotor aircraft for the U.S. Army. The company also aims to be disciplined in how it uses its capital (money for investments), looking for opportunities that offer strong returns and strategic advantages.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$137.00M
FY2025 Q4
$293.00M
FY2026 Q1
$-180.00M
FY2026 Q2
$309.00M
FY2026 Q3
$273.00M
FY2026 Q4
$527.00M
FY2027 Q1
$-250.00M
FY2027 Q2
$209.00M
Revenue
$3.83B
Net income
$248.00M
Diluted EPS
1.42
Operating cash flow
$304.00M
Free cash flow
$209.00M
Fetching…
Sources
Revenue
$3.69B
Net income
$220.00M
Diluted EPS
1.25
Operating cash flow
$-117.00M
Free cash flow
$-250.00M
Fetching…
Sources
Revenue
$4.17B
Net income
$235.00M
Diluted EPS
3.98
Operating cash flow
$700.00M
Free cash flow
$527.00M
Fetching…
Sources
Revenue
$3.60B
Net income
$234.00M
Diluted EPS
—
Operating cash flow
$349.00M
Free cash flow
$273.00M
Fetching…
Sources
Revenue
$3.72B
Net income
$245.00M
Diluted EPS
1.35
Operating cash flow
$387.00M
Free cash flow
$309.00M
Fetching…
Sources
Revenue
$3.31B
Net income
$207.00M
Diluted EPS
1.13
Operating cash flow
$-124.00M
Free cash flow
$-180.00M
Fetching…
Sources
Revenue
$3.61B
Net income
$141.00M
Diluted EPS
3.30
Operating cash flow
$446.00M
Free cash flow
$293.00M
Fetching…
Sources
Revenue
$3.43B
Net income
$223.00M
Diluted EPS
—
Operating cash flow
$208.00M
Free cash flow
$137.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $95.00 vs current price $80.71
Wall Street consensus is the average analyst price target: $102.07 (7.4% higher than our fair-value estimate).
Our most-likely fair value is $95.00 a share — about 17.7% above today's price of $80.71, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $2.8B. Interest coverage 7.9x.
Net debt
$2.78B
Interest coverage
7.94x
Textron Inc.'s profit covers its interest bill about 7.9 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
TXT
BASELINE
Textron Inc.
Total debt $4.21B Interest coverage 7.94x This is the baseline the peer rows are being compared against.
Total debt $9.48B Interest coverage 13.32x +68% vs TXT Carries about 1.7x more debt cushion than TXT.
Total debt $4.50B Interest coverage 2.48x -69% vs TXT Carries about 3.2x less debt cushion than TXT.
Total debt $11.00B Interest coverage 3.60x -55% vs TXT Carries about 2.2x less debt cushion than TXT.
Total debt $2.94B Interest coverage 5.82x -27% vs TXT Carries about 1.4x less debt cushion than TXT.
What you should know
The case for and against TXT
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.4% last year.
-
Returns 12.1% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 21.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.20x
Forward P/E
11.11x
P/B
1.72x
P/S
0.91x
EV/EBITDA
9.91x
PEG ratio
0.94x
Profitability
How much profit each dollar creates
Gross margin
17.6%
Operating margin
8.7%
Net margin
6.1%
ROE
12.1%
ROA
4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.52x
Current ratio
1.86x
Quick ratio
0.65x
Total debt
$4.21B
Total cash
$1.44B
Growth
How the business has been compounding
Revenue TTM
$15.30B
Revenue 5Y CAGR
4.6%
EPS TTM
5.31
EPS 5Y CAGR
8.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.24B
Free CF TTM
$929.00M
FCF margin
6.1%
Dividend
Shareholder payout
Yield
0.1%
Payout ratio
1.5%
Last ex-div date
2026-09-11