Textron Raises 2026 Adjusted EPS Outlook To $6.55-$6.65 And Cash Flow Target To $800 Million-$900 Million
Citation jet deliveries lifted third-quarter revenue 4% to $3.8 billion while Bell revenue fell 9%.
Textron, the maker of Cessna and Beechcraft aircraft and Bell helicopters, raised its full-year adjusted earnings outlook to $6.55 to $6.65 a share from $6.40 to $6.60, after Congress approved the U.S. Army's funding request for the MV-75 Cheyenne helicopter program. The company also lifted its manufacturing cash flow target to $800 million to $900 million from $700 million to $800 million, it said Thursday in third-quarter results.
Jets carry the quarter
Third-quarter income from continuing operations was $1.56 a share, against $1.31 a year earlier. On an adjusted basis it was $1.76, up from $1.55. Revenue rose 4%, or $149 million, to $3.8 billion.
Textron Aviation led, with revenue up 14% to $1.7 billion. It delivered 51 jets, against 42 a year earlier, while commercial turboprop deliveries fell to 32 from 39. Segment profit rose 4% to $179 million, and backlog stood at $8.0 billion.
Textron Systems revenue climbed 16% to $360 million on armored vehicles and military training services, and segment profit rose 21% to $57 million. Industrial revenue edged up 1% to $765 million, with profit up 23% to $38 million.
CEO Lisa M. Atherton said higher jet deliveries and program execution at Textron Systems "drove double-digit revenue growth at each of these segments."
Bell slips as MV-75 volume falls
Bell revenue dropped 9% to $933 million, driven mainly by $59 million less military revenue, largely from lower MV-75 volume. Commercial helicopter, parts and services revenue fell $34 million. Bell delivered 29 commercial helicopters, against 30 a year earlier.
Bell's segment profit fell 17% to $76 million, which the company attributed primarily to lower volume and mix. Bell's backlog was $7.6 billion.
The raised outlook, the company said, reflects the Army's receipt of Congressional approval for its Above Threshold Reprogramming request on the MV-75 Cheyenne program, and the contract modifications that obligate that funding.
Cash flow and buybacks
Manufacturing operating cash flow was $512 million, compared with $348 million a year earlier. Manufacturing cash flow before pension contributions was $418 million, up from $281 million. Textron spent $239 million on share repurchases in the quarter.
Full-year GAAP earnings per share from continuing operations are now forecast at $5.64 to $5.74, up from $5.39 to $5.59.
Textron holds its earnings call at 8:00 a.m. ET Thursday to discuss the results and outlook.
Sources
- 8-K Filing — TEXTRON INC (TXT) — SEC EDGAR
- Exhibit q320268-kex991.htm — TEXTRON INC 8-K exhibit — SEC EDGAR
