Q4 2025 Textron Inc Earnings Call Transcript
Key Points
- Textron Inc (TXT) reported significant revenue growth of 16% and segment profit growth of 34% in the fourth quarter of 2025, resulting in an adjusted EPS of $1.73.
- The Aviation segment experienced a strong year with a 36% increase in revenue for the fourth quarter and 13% for the full year, driven by higher aircraft deliveries and increased aftermarket volume.
- The MV-75 program at Bell marked its second consecutive year of 20% growth in military revenue, with significant progress in engineering and production capacity.
- Textron Systems saw revenue growth despite headwinds, with a strong performance in the Ship-to-Shore Connector program and a new $200 million IDIQ contract for its ATAC business.
- Textron Inc (TXT) ended 2025 with a record $14.8 billion in revenue, the highest in the company's history, and projects further growth in 2026 with expected revenues of $15.5 billion.
- The Industrial segment faced challenges, with a 9% decline in revenue for the full year, partly due to the divestiture of the Powersports business.
- Bell's segment profit decreased by $9 million in the fourth quarter compared to the previous year, despite an increase in military revenues.
- Textron eAviation reported a segment loss of $15 million in 2025, compared to a segment loss of $22 million in 2024, indicating ongoing challenges in this segment.
- The company anticipates a potential unfavorable cumulative catch-up program adjustment for the MV-75 program, reflecting higher costs than originally anticipated.
- Textron Inc (TXT) faces ongoing supply chain challenges, particularly with key components like engines, impacting production efficiency and delivery schedules.
Thank you for standing by, and welcome to the Textron fourth-quarter 2025 conference call. (Operator Instructions)
I'd now like to turn the call over to Scott Hegstrom, Vice President of Investor Relations and Treasurer. You may begin.
Thanks, Rob. And good morning, everyone. Before we begin, I'd like to mention we will be discussing future estimates and expectations during our call today. These forward-looking statements are subject to various risk factors, which are detailed in our SEC filings and also in today's press release.
On the call today, we have Scott Donnelly, our Executive Chairman; Lisa Atherton, our Chief Executive Officer; and David Rosenberg, our Chief Financial Officer. Our earnings call presentation can be found in the Investor Relations section of our website.
With that, on the call over to Scott.
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