Textron Inc.

Textron Inc.

TXTยทNYSE

$91.38

+0.011%
IndustrialsAerospace & Defense

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses. The company's Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. Its Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The company's Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. Its Industrial segment offers blow-molded plastic fuel systems, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, and plastic tanks for catalytic reduction systems primarily to automobile original equipment manufacturers; and golf cars, off-road utility vehicles, recreational side-by-side and all-terrain vehicles, snowmobiles, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The company's Finance segment provides financing services to purchase new and pre-owned aircraft and bell helicopters. It serves in the United States, Europe, Asia, Australia, and internationally. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.

At a Glance

Live Snapshot
Market Cap$15.89B
EPS5.1100
P/E Ratio17.88
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 17.9).

Valuation inputs: P/E 17.9, earnings yield +5.6%, momentum +0.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +11.7%, ROIC +7.3%).

Profitability stack: net margin +6.2%, ROE +11.7%, ROIC +7.3%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +56.6%, momentum +0.0%, net margin +6.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Textron Inc. Market vs Earnings Trajectory

TXT ยท NYSE

Loading price and EPS data...

Textron Inc.

Textron Inc. Fair Value Envelope

TXT ยท NYSE

Our analysis suggests that TXT has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $91.38, this represents a potential HIDDEN relative to our calculated worth for Textron Inc..

Intrinsic Value
Current Price: $91.38
3Y+11.0%
5Y+53.0%
10Y+343.0%
3Y+8.0%
5Y+20.0%
10Y+4.0%
3Y-
5Y+23.0%
10Y+200.0%
3Y-
5Y+65.0%
10Y+35.0%
3Y+2.0%
5Y+96.0%
10Y+72.0%
3Y+8.0%
5Y+15.0%
10Y+27.0%
Textron Inc.

Textron Inc. Profit Bridge

TXT ยท NYSE
Revenue14.80B
Cost of Goods Sold (12.30B)
Gross Profit2.50B
Operating Expenses (1.25B)
Operating Income1.25B
Interest Expense (97.00M)
Other Income/Expense-112.00M
Pretax Income1.14B
Income Tax (214.00M)
Net Income921.00M
Net Income
921.00M

Profitability Analysis

Gross Margin

16.9%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

8.4%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

6.2%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

18.8%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

16.91%
Gross Profit Margin
-7%
3Y-19.0%
5Y-
10Y-20.0%
8.44%
Operating Profit Margin
35%
3Y+10.0%
5Y+21.0%
10Y+16.0%
6.22%
Net Profit Margin
3%
3Y-8.0%
5Y+3.0%
10Y+188.0%
11.70%
Return on Equity
2%
3Y-11.0%
5Y+7.0%
10Y+98.0%
5.08%
Return on Assets
4%
3Y-7.0%
5Y+8.0%
10Y+136.0%
7.33%
Return on Invested Capital
26%
3Y+6.0%
5Y+26.0%
10Y+94.0%
TXT

Textron Inc. Cash Conversion Engine

TXT ยท NYSE
Net Income1.60B
Depreciation & Amortization391.00M
Stock-Based Compensation0.00
Change in Working Capital-121.00M
Others-589.00M
Capital Expenditures-384.00M
Free Cash Flow884.00M

Cash Flow Quality Analysis

FCF Conversion Rate

55.1%

Weak cash conversion. Significant portion of earnings not converting to cashโ€”review working capital trends and capital intensity.

CapEx Intensity

30.3%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+2.3%

Flat FCF growth. Stable but not expandingโ€”monitor for signs of business maturity or temporary headwinds.

Working Capital Impact

-$121.00M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

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Textron Inc. Funding & Solvency Profile

TXT ยท NYSE
Cash & Cash Equivalents1.51B
Net Receivables885.00M
Inventory4.56B
Other Current Assets0.00
Total Current Assets7 B
Property, Plant & Equipment2.57B
Goodwill & Intangible Assets2.32B
Long-Term Investments580.00M
Other Non-Current Assets-580.00M
Total Non-Current Assets3 B
Total Assets
18.14B

Financial Health Analysis

Current Ratio

1.48x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

1.27x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

2 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

38% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Textron Inc. Street Expectations Map

TXT ยท NYSE

Wall Street analysts project that TXT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 107.40, with estimates ranging from a low of 100.00 to a high of 110.00.

Lowest Target
100.00
9.43%
Consensus Target
107.40
17.53%
Highest Target
110.00
20.38%

The consensus 1-year price target stands at 107.40, with estimates ranging from a low of 100.00 to a high of 110.00.

Analyst Consensus Analysis

Upside Potential

+17.5%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

9.3% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Textron Inc. Insider Positioning

TXT ยท NYSE

During the last 12 months, insiders have purchased $989K and sold $14.78M worth of TXT shares, resulting in $13.79M of net selling activity.

3 Months

Bought

10.3K

988.59K

Sold

2.5K

234.31K

Net Activity

+754K

+$754K

3-6 Months

Bought

0

0.00

Sold

130.2K

12.78M

Net Activity

-12.8M

-$12.78M

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

22.3K

1.77M

Net Activity

-1.8M

-$1.77M

Top Buyers

1
KTA

Kennedy Thomas A

Director

10.3K sharesโ€ข1 transactions

$989K

Top Sellers

1
DSC

Donnelly Scott C

Director, Officer: Executive Chairman

130.2K sharesโ€ข1 transactions

$12.78M

2
DJG

Duffy Julie G

Officer: Evp And Chro

22.3K sharesโ€ข1 transactions

$1.77M

3
CRK

Clark R Kerry

Director

2.5K sharesโ€ข1 transactions

$234K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $13.79M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.07:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$754K

Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.

Insider Participation

High Selling

3 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.

0.02%
Dividend Yield
-57%
3Y-30.0%
5Y-24.0%
10Y-58.0%
ย 

txt Dividend History

TXT
10Y CAGR +0%
Latest $0.02
Annual $0.1
Stable dividend payments
Last Period: +0%