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FY2025 Q4
Improving
Textron Inc. earnings call
Buzzberg read
MV75 program accelerated by two to three years
Textron reported a strong Q4 2025 and full year, driven by recovery at Aviation and acceleration of the Bell MV-75 program. The company provided initial 2026 guidance for higher revenue and EPS, while signaling a significant increase in investment and a potential one-time charge related to the accelerated MV-75 LRIP contract. Full-year 2025 revenue was a record $14.8 billion, up 8%, with adjusted EPS of $6.10, up from $5.48 in 2024.
Buzzberg read MV75 program accelerated by two to three years Textron reported a strong Q4 2025 and full year, driven by recovery at Aviation and acceleration of the Bell MV-75 program. The company provided initial 2026 guidance for higher revenue and EPS, while signaling a significant increase in investment and a potential one-time charge related to the accelerated MV-75 LRIP contract. Full-year 2025 revenue was a record $14.8 billion, up 8%, with adjusted EPS of $6.10, up from $5.48 in 2024. Read full analysisCollapse analysis
Textron reported a strong Q4 2025 and full year, driven by recovery at Aviation and acceleration of the Bell MV-75 program. The company provided initial 2026 guidance for higher revenue and EPS, while signaling a significant increase in investment and a potential one-time charge related to the accelerated MV-75 LRIP contract. Full-year 2025 revenue was a record $14.8 billion, up 8%, with adjusted EPS of $6.10, up from $5.48 in 2024.
- Aviation segment saw strong recovery with 171 jets delivered in 2025, up from 151, and order flow remains solid with a $7.7 billion backlog.
- Bell's military revenue grew 20% for the second consecutive year due to the acceleration of the MV-75 program, with first flight testing expected later this year and LRIP deliveries starting in 2028.
- 2026 guidance calls for ~$15.5 billion revenue, adjusted EPS of $6.40-$6.60, and manufacturing FCF of $700-$800 million, with the FCF impacted by $350 million of higher capex for MV-75 LRIP.
Revenue$4.175BReported
EPS$1.73Reported
Gross margin12.1%Reported
Operating margin11.9%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Guidance
LRIP award expected late 2026 or early 2027
Margins
Potential unfavorable catch-up adjustment on MV75 LRIP
Show 3 more callouts
Demand
Aviation backlog at $7.7 billion, demand strong
Margins
Bell to return to double-digit margins as MV75 matures
Margins
Aviation incrementals expected at 20-25%
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $4.175B | Reported |
| EPS | $1.73 | Reported |
| Gross margin | 12.1% | Reported |
| Operating margin | 11.9% | Reported |
| Free cash flow | $0.527B | Reported |
| Capex | $0.173B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $6.40–$6.60 | $6.50 | Guided |
| Free cash flow | FY2026 | $700M–$800M | $750M | Guided |
| Operating marginAVIATION | FY2026 | 11%–12% | 11.5% | Guided |
| Operating marginBELL | FY2026 | 8%–9% | 8.5% | Guided |
| Operating marginSYSTEMS | FY2026 | 12%–13% | 12.5% | Guided |
| Operating marginINDUSTRIAL | FY2026 | 4.5%–5.5% | 5% | Guided |
| RevenueSYSTEMS | FY2026 | $1.35B | $1.35B | Guided |
| RevenueAVIATION | FY2026 | $6.5B | $6.5B | Guided |
| RevenueBELL | FY2026 | $4.4B | $4.4B | Guided |
| Revenue | FY2026 | $15.5B | $15.5B | Guided |
| RevenueINDUSTRIAL | FY2026 | $3.2B | $3.2B | Guided |
AI, capex & demand read
Management read
Confident
Management repeatedly emphasized strong execution, program acceleration, and a healthy backlog, expressing confidence in future growth and the company's positioning.
Investment and capacity
Management is raising capital expenditure and long-lead material investments to support the accelerated MV75 program, with approximately $350 million of higher capex and long-lead materials in 2026, and elevated levels expected through 2027 as investment is pulled forward from later years.
all 2 named companies below
Companiesreturns since call
Supply chain
Supply chain
Lisa Atherton
The supply chain for aviation is still constrained, specifically citing engines as a laggard, but the company sees improved factory efficiency as a key lever for margin expansion in 2026. — Engine availability remains a bottleneck for Textron's jet and turboprop deliveries, which is a positive signal for engine OEMs like GE and RTX.
Evidence
“candidly, engines, just to call it a key component, which you have to have for these aircraft, has been a laggard for us. We have to keep working with our partners there in order to get the engines to our aircraft.”
External signals
Supply-chain alpha · 2returns since call
Textron is pulling forward MV-75 LRIP investment by 2-3 years, resulting in a one-time unfavorable cumulative catch-up adjustment of $60-$110M upon contract award, but this is on a program with a positive long-term margin.
Evidence
“Upon award of the LRIP option, which is largely fixed price, we expect to record an unfavorable cumulative catch-up program adjustment... in the range of $60 million to $110 million.”
The supply chain for aviation is still constrained, specifically citing engines as a laggard, but the company sees improved factory efficiency as a key lever for margin expansion in 2026.
Methodology & coverage
Management-only analysis. All 2 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.