Textron shares fall as quarterly revenue misses estimates

[Brand new Bell 429 helicopter sitting on the apron]
Photofex-AT/iStock Editorial via Getty Images

Textron (NYSE:TXT [https://seekingalpha.com/symbol/TXT]) shares fell 4% as regular trading opened Thursday to a seven-week low after the company reported third-quarter results that topped Wall Street’s profit forecasts but slightly missed expectations for revenue.

The Providence, R.I.-based industrial conglomerate posted earnings from continuing operations of $1.31 a share, up from $1.18 in the same quarter last year. Adjusted earnings came in at $1.55 a share, beating analyst estimates for $1.46 a share.

Revenue rose 5% to $3.6 billion, or $175 million higher than a year ago, but came in just shy of consensus expectations for $3.7 billion. The company attributed the gains to stronger performance in its Aviation, Bell and Textron Systems segments, offset partly by softness in its industrial unit following the divestiture of its Powersports business.

SEGMENT RESULTS

Textron Aviation sales climbed 10% to $1.5 billion, driven by higher jet and turboprop deliveries, while segment profit jumped $51 million to $179 million. Bell’s revenue also rose 10% to $1.0 billion, benefiting from military programs such as the U.S. Army’s MV-75, though commercial helicopter deliveries declined to 30 from 44 a year earlier.

Textron Systems revenue increased modestly to $307 million, supported by the Ship-to-Shore Connector program, while industrial revenue fell 9% to $761 million on the Powersports divestiture.

The company’s backlog expanded by $2.2 billion to a total of $19.1 billion, led by strong orders at Bell and Textron Systems.

Cash flow from manufacturing operations rose sharply to $281 million, compared with $147 million a year earlier. Textron (NYSE:TXT [https://seekingalpha.com/symbol/TXT]) returned $206 million to shareholders through buybacks in the quarter, bringing the year-to-date total to $635 million.

For 2025, Textron (TXT [https://seekingalpha.com/symbol/TXT]) reaffirmed its earnings outlook of $5.19 to $5.39 per share, or $6.00 to $6.20 on an adjusted basis, and expects manufacturing cash flow before pension contributions between $900 million and $1 billion.

MORE ON TEXTRON

* Textron Inc. 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4832370-textron-inc-2025-q3-results-earnings-call-presentation]
* Textron: Ugly Execution, Attractive Upside [https://seekingalpha.com/article/4823559-textron-ugly-execution-attractive-upside]
* Textron Non-GAAP EPS of $1.55 beats by $0.09, revenue of $3.6B misses by $110M [https://seekingalpha.com/news/4507347-textron-non-gaap-eps-of-1_55-beats-by-0_09-revenue-of-3_6b-misses-by-110m]
* Textron Q3 2025 Earnings Preview [https://seekingalpha.com/news/4506976-textron-q3-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Textron [https://seekingalpha.com/symbol/TXT/ratings/quant-ratings]