Textron Profit Rises as Aviation Growth Slows
Manufacturing cash flow before pension contributions fell to $154 million in the second quarter.
Textron Inc. (TXT), the aircraft and industrial-products maker, posted higher second-quarter earnings as growth slowed across its Aviation, Bell and Systems businesses.
The quarter marked a shift from the faster expansion recorded earlier in the year. Textron also initiated a sale process for its Industrial business after saying in April that it was exploring several separation paths.
Revenue rose 3% from a year earlier to $3.827 billion, down from 12% growth in the first quarter. GAAP earnings increased to $1.42 a share from $1.35, while adjusted earnings rose to $1.62 a share from $1.55. First-half revenue gained 7% to $7.522 billion, and adjusted earnings increased to $3.07 a share from $2.83.
Textron Aviation revenue edged up 1%, compared with 22% growth in the first quarter, as higher pricing was partly offset by lower volume and mix. Jet deliveries declined to 40 from 49 a year earlier, while commercial-turboprop deliveries increased to 44 from 34. Segment profit fell 3% to $165 million, narrowing the implied margin to about 10.7%.
Bell revenue rose 6% to $1.074 billion, supported by higher military revenue and a return to growth in commercial helicopters, parts and services. Commercial-helicopter deliveries increased to 36 from 32, though segment profit declined 6% to $75 million as program performance and military-program mix weighed on results. Bell’s backlog slipped sequentially to $7.5 billion.
Industrial provided a counterweight to the aerospace margin pressure. Revenue rose 1% to $848 million, while segment profit gained 9% to $59 million as pricing net of inflation, including tariff recoveries, lifted the implied margin to about 7.0%. Textron Systems revenue increased 7% and profit rose 10%, helped by lower research-and-development costs.
Textron maintained its 2026 outlook for GAAP earnings of $5.39 to $5.59 a share, adjusted earnings of $6.40 to $6.60 a share and manufacturing cash flow before pension contributions of $700 million to $800 million. A lack of additional MV-75 funding could reduce adjusted earnings by $0.20 to $0.30 a share and cash flow by $150 million to $250 million. Inventories had increased $442 million from year-end to $4.720 billion, adding pressure to cash generation as Textron pursued the Industrial sale.