Textron (TXT)
Industrials · $13.6B market cap · SEC CIK 0000217346
fundamentals score out of 100
Next reports on Oct 21, 2026, before the open, with analysts expecting $1.54 in earnings per share.
The case for TXT
- Revenue growing 8.8% year over year.
- Reasonably priced at 14.6× earnings.
- A PEG of 0.73: a P/E of 14.6× is low for EPS growing 20%.
- Price/sales of 0.9× is lower than 92% of Industrials companies.
- Free-cash-flow yield of 6.8% is higher than 88% of Industrials companies.
The case against
- Near the bottom of its 52-week range, 23% below the high. Falling prices usually have a reason; find it first.
- Profitability is weak (30/100): return on equity 12%, net margin 6.1%, gross margin 18%, 101% of profit turned to cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 85 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 48 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 30 |
| Momentumhow the price has behaved lately | 22 |
| Stabilityhow violently it moves, what it owes and what it pays you | 72 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 14.6× |
|---|---|
| Price / book | 2.03× |
| Price / sales | 0.9× |
| Revenue growth (YoY) | +8.8% |
| EPS growth (YoY) | +19.9% |
| Gross margin | 18% |
| Operating margin | 7% |
| Net margin | 6% |
| Return on equity | 12% |
| Debt / equity | 0.47× |
| Current ratio | 1.75 |
| Dividend yield | 0.10% |
| Beta | 0.90 |
| 52-week range | $78.12 – $101.57 |
| Position in that range | 0% of the way up |
| 3-month return | -11.2% |
| 1-year return | -5.0% |
Five years of financials, as filed
Pulled from Textron's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $14.8B | $13.7B | $13.7B | $12.9B | $12.4B |
| Net income | $921M | $824M | $921M | $861M | $746M |
| Operating cash flow | $1.3B | $1.0B | $1.3B | $1.5B | $1.6B |
| Capital expenditure | $383M | $364M | $402M | $354M | $375M |
| Total assets | $18.1B | $16.8B | $16.9B | $16.3B | $15.8B |
| Total liabilities | $10.3B | $9.6B | $9.9B | $9.2B | $9.0B |
| Shareholder equity | $7.9B | $7.2B | $7.0B | $7.1B | $6.8B |
| Cash | $2.0B | $1.4B | $2.2B | $2.0B | $2.1B |
| Free cash flow | $929M | $650M | $864M | $1.1B | $1.2B |
| Net margin | 6.2% | 6.0% | 6.7% | 6.7% | 6.0% |
| Diluted shares | 180M | 190M | 202M | 215M | 227M |
Share count is down 20.4% over 4 years. Buybacks have been shrinking the pie.
What Textron says it does
A discussion of our financial condition and operating results for 2025 compared with 2024 is provided below, while a discussion of 2024 compared with 2023 can be found in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 28, 2024. The following discussion should be read in conjunction with our Consolidated Financial Statements and related Notes included in Item 8. Financial Statements and Supplementary Data. Business Environment Changes to the United States trade policy have resulted in new or higher tariffs on goods imported from numerous countries, and some countries have imposed retaliatory tariffs on imports from the United States. We are principally a North American manufacturer and 69% of our 2025 revenues were generated in the U.S. Our aircraft products, subassemblies, parts and components manufactured in Canada and Mexico…
Risk factors TXT lists in its 10-K
- Risks Related to Regulatory, Legal and Other Matters
- Information about our Executive Officers
- Aerospace and Defense Industry Risks
- Demand for our aircraft products is cyclical and lower demand adversely affects our financial results
- We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely affect our results of operations and financial condition
- U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions
- As a U.S. Government contractor, we are subject to procurement rules and regulations; our failure to comply with these rules and regulations could adversely affect our business
- As a U.S. Government contractor, our businesses and systems are subject to audit and review by the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA)
- Our profitability and cash flow varies depending on the mix of our government contracts and our ability to control costs
- The market for U.S. Government defense business is highly competitive, and the competitive bidding process increases pricing pressure and cost which may affect our ability to win new contracts for major government programs
- Developing new products and technologies entails significant risks and uncertainties
- We have made and may continue to make acquisitions that increase the risks of our business
- Global macroeconomic conditions could negatively impact our business
- Our business could be negatively impacted by cybersecurity threats and other disruptions